Fare slash makes Jugnoo 40% cheaper than cheapest taxis

Jugnoo, India's leading on demand auto rickshaw aggregator, announces reduction in its base fare by Rs. 5 and per km fare to Rs. 4 and Rs. 3 across metros and towns respectively. This is a progressive business strategy employed by Jugnoo to increase the demand and keep up with the goal of being the fastest and most affordable means of public transport in the country. The initiative is in line with Jugnoo's aggressive customer acquisition strategy and the objective of increasing number of rides per auto rickshaw.

The fare reduction will benefit both the drivers and Jugnoo customers alike. Drivers will be able to get more rides due to low fares which will eventually increase their earnings and customers will be able to get rides at cheaper rates, a win-win situation for Jugnoo and its stakeholders.

Samar Singla, Co-founder and CEO, Jugnoo, commented "The fare slash is an outcome of our increased driver efficiency. We have been able to increase the number of rides per auto rickshaw by three times over the past six months which has enabled us to convince our drivers to bring down ride fares. The drivers have understood the importance of remaining engaged by offering their rides at lower fares as it allows them to earn more and reduces their idle time significantly."

Jugnoo recently raised $5.5 million in series-B round, the funds will enable Jugnoo to expand pan-India, launch new offices, improving supply quality, incentives and rewards targeted towards driver welfare and performance improvement, scaling up marketing and advertising campaigns.

Source : Equity Bulls

Keywords