Sunday, December 22

Eyeing on 300 Crore Profit, Indian Railways Will Allow Space For App Based Cab Service

Encashing the growing demand for application-based cab services, the Indian Railways is all set to provide space for such facility at about 500 major stations, eyeing an annual profit of Rs 300 crores.

Railway Minister Suresh Prabhu will unveil the new policy for app-based cab service next month along with providing parking space and kiosks near major stations.

The Railways at present earns about Rs 122 crores a year from parking spaces across the country. With the new policy, the national transporter envisages Rs 200 crores more annually from these parking spaces, a senior official said.

Though a passenger can still avail Ola or Uber service through the mobile application, allowing a kiosk and adequate parking space near busy stations is expected to ensure good business for the aggregators, he said.

The Railway Ministry official said that the policy was finalised after a series of discussions with cab aggregators and all of them were keen to have a space near busy railway stations. “The app-based cab service policy envisages good returns for the public transporter,” he said.

Faced with slow growth in passenger and freight sector, the Railways is diversifying its earning sources and effective utilisation of parking lots is one of them.

The official added that the new initiative was “passenger-friendly as one can get these services at stations even without the application, while at the same time, it will generate additional revenue for Railways.