Reliance Plans To Buy All Black And Yellow Cabs Of Mumbai

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Reliance is planning to buy all black and yellow cabs of Mumbai to make its entry into the taxi business. It is said that the company is in talks with the taxi union.

If everything goes to the plan Reliance will operate the cabs as part of the connected radio taxi service. It is said that Reliance has offered to pay Rs 5 lakh per taxi including the license rights.

Although, the taxi union is pressing on to increase the amount to Rs 7 lakh per cab. As part of the deal Reliance will pay Rs 20,000 to each driver for a day's shift and will provide a one month paid leave.

But the taxi union wants to extend the paid leave period to two months. It is said that these are the points where the negotiations are currently stuck.

Reliance was eyeing the cab business for a while now. Earlier it was rumoured that the firm will enter cab business as a rival to Ola and Uber across the country.

According to reports Reliance was luring drivers from other taxi aggregators by offering attractive proposals. The company was also planning to run CNG taxi fleet to reduce operational costs. Although, Reliance have not confirmed the development.

via TeamBhp

Read more on: #auto news
Story first published: Wednesday, December 7, 2016, 18:13 [IST]
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