Regulating auto fares in the Silicon Valley of India, Jugnoo forays into Bengaluru market

Jugnoo, India's leading on demand auto rickshaw aggregator, offering the largest network of auto-rickshaws in India, recently announced the launch of its services in the IT capital of India, Bengaluru. An integral part of Jugnoo's expansion strategy, this venture was inspired by the idea of offering affordable and reliable means of public transport with fixed ride rates. The rates being offered in Bengaluru are relatively lower as compared to the rest of the markets, with the base fare being Rs. 15 and the per kilometer fare being as low as Rs. 4 only.

The move is in line with the company's strategy to expand its network across metros, towns and villages at an exponential rate. To this effect, Jugnoo entered the New Delhi market in January 2016 and slashed the fare across all the markets that it operates in to offer affordable and reliable means of public transport to commuters in the capital.

Elaborating further on the expansion, Samar Singla, Founder and CEO Jugnoo said, "As the IT hub continues with its big ticket development plans, the influx of IT professionals in the city is growing relentlessly. With this as a background, along with an inadequate public transport infrastructure, travelling within the city becomes a mammoth task. The issue also adds to the rising traffic concerns of the city, where people spend a major part of their day in commuting. Furthermore, people living in Bengaluru also often complain about the auto drivers fleecing them off their money."

"Bearing these matters in mind, entering into the Bengaluru market is an absolutely logical move. With Jugnoo, people will be encouraged to use this means instead of their personal conveyance as auto-rickshaws are easier to navigate and will now be available to them at consistent and affordable prices. Apart from this, Jugnoo will also provide them the convenience of hailing their ride through a single tap." He added.

Offering a reasonably priced and trustworthy means of public transport through this foray, Jugnoo plans to have 1000 transactions per day and add 500 auto-rickshaws to its network within a month of its launch in the city.

Source : Equity Bulls

Keywords