How Startups Like Meru, Uber, Olacabs, TaxiForSure Have Transformed Lives Of Taxi Drivers

Across major Indian cities a silent revolution is brewing among taxi drivers who are gaining from the advent of a new breed of startups that are transforming the industry.

Monthly income of several taxi drivers have at least tripled and a few with leadership skills have become entrepreneurs themselves, by managing scores of other drivers.

The startups, which use technology to manage this network of drivers and link them to customers, earn a 2-5 per cent commission from the driver on every trip. Companies like Olacabs, TaxiForSure, Meru and Uber are making a dent in India's taxi-rentals market estimated at about $ 6 billion.

In the process, they are changing the lives of thousands of drivers. ET takes a close look at five people who have benefited enormously from this rising trend.

Khamer Gulzar B.Com first year dropout MERU CABS INCOME BEFORE: NIL

After having worked in Dubai as a sales executive for about 15 years, Khamer Gulzar returned to India in 2003 with some savings to start a restaurant. It failed. He started a used car business with the leftover savings.

Two failed ventures landed Gulzar in deep debt of Rs 15 lakh. That's when he decided to join Meru Cabs as a driver in 2009. Within four years, Gulzar has become debt free. He earns about Rs 40,000 per month, of which he saves nearly Rs 10,000.

"My next goal is to buy my own house and ensure my kids have the best education," said Gulzar, a father to two school-going children. "My daughter wants to be a doctor and I can support her dream with this job," said Gulzar, who owns a Mahindra Logan cab.

Bharathi Veerath School dropout UBER INCOME BEFORE: Rs 14,000

Bharathi Veerath migrated from Warangal in 2005 to Bangalore with her mother and brother in search of a livelihood. A school dropout, she took to odd jobs of tailoring and working in travel agencies, before taking to driving taxis with an all women operated Angel Cabs last year.

Veerath was the first woman licenced taxi driver in India. She earned Rs 15,000 per month till October as a driver with Angel Cabs, when she heard of India entry of USbased taxi hailing application Uber. She decided to risk and join Uber. Veerath bought a Ford Fiesta, loaned by Canara Bank on an EMI of Rs 17,000 per month. Within five months, her income increased to Rs 45,000 per month, from her own car which she drives for Uber and other taxi fleet operators.

"Owning my car has given me freedom to work upon my will," said Veerath, who loves to drive for almost 12 hours a day. When not in a mood to take work, she simply switches off her iPhone which has the Uber app loaded on it.

GG Balaji SSC dropout SAVAARI INCOME BEFORE: Rs 10,000

While taking a few tourists around Coorg last year, Bangalore-based cab driver GG Balaji's father suffered a cardiac problem. He left the cab in Coorg and returned to Bangalore to mortgage family gold to have a bypass surgery done for his father. None of the local taxi operators came to his rescue.

That's when Balaji decided to attach himself to Savaari Car Rentals, an Intel Capital-funded taxi rentals startup, as a full time driver. His monthly income has grown from Rs 10,000 per month to Rs 35,000 within six months. Over and above that, Balaji gets a diesel allowance of about Rs 20,000 per month.

"It's a nice feeling to know that a fixed salary will get credited every month," said Balaji, who had earlier served in Indian Army's Corp of Artillery Air Defence till 1996 on the borders. Balaji's next goal is to buy a plot of land. "I am also buying a Tata Manza this Diwali and attaching a relative of mine who will pay me a monthly commission on it," said Balaji.

Reshma Banu 12th Standard Pass OLACABS INCOME BEFORE: NIL

Bangalore-based Reshma Banu, a housewife, morphed into a mini entrepreneur in 2006 when she started her car rental business in 2006, egged on by her husband. She bought a Tata Indica with a bank loan. With the emergence of taxi startups in Bangalore, last year, her business took off.

Banu signed up with Olacabs as an operator last year. Her business has now grown to a fl eet of 16 cars, which includes Innovas, Fiestas and Micras. "I bought five Nissan Micra cars for use in Olacabs last month at a discount of Rs 1 lakh per car offered by the company," she said.

"The drive to be an independent woman keeps me motivated," said Banu. Banu has also tied up with seven more aggregators and earns a net profit of about Rs 1 lakh a month, from Olacabs alone. "My next goal is to buy five more cars, this year," she added.

Rajesh Kumar 7th Standard Pass TAXIFORSURE INCOME BEFORE: Rs 15,000

Delhi-based Rajesh Kumar used to be a bus driver earning Rs 15,000 per month before he attached himself with TaxiForSure in January, last year.

On a visit to Delhi, TaxiForSure chief executive Aprameya Radhakrishnan, asked Kumar, the name of a company, if he ever owned one. Kumar came out with the name 'Shabnam Cabs'.

In March 2013, Shabnam Cabs was up and running in Delhi as a local taxi operator. The 43-year-old now has over 100 cab drivers under him, and earns a commission of 2 per cent per trip from each of them in addition to Rs 1,000 as monthly commission per driver.

His monthly gross income has increased 10-fold to Rs 1.2 lakh, out of which he gets a profit Rs 60,000. Father of two grown up kids, Kumar plans to have his son involved in the business, after he graduates from Delhi University.

"My next goal is to expand my business to Chandigarh and Jaipur," said Kumar, who was recently flown to Hyderabad by TaxiForSure to coach newly attached drivers.