Demand for Standard Per Day Rental & Per Km Policy for Tourist SUV Cabs

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Dear People,

I am Jyothi Reddy the owner (Founder) of Hire Innova Cabs, A Unit of CSR Cab Services Pvt Ltd., from Bangalore.

I had started my Car Rental Business in 2015 and the journey is so far so good. I want to bring this to all your notice that the Car Rental business is getting worst day by day because of 2 factors.

1) Funded companies are killing the market by throwing huge discounts to customers but paying dirt cheap prices to the cab drivers

2) Owner cum Drivers those who really not bothered about future but only worried about present situation and drive the cab for any price.

Have a look at the Investment Vs Returns, and upon decide if you people still want to continue this way of promoting business !! 

Buying a SUV - Innova will cost 15 Lakhs, that can be driven for 5 years or 3 Lakh Kms for Tourist purpose.

Investment : 15,00,000/-

Expenses in 5 years : Rs. 10,10,000/- (Avg of 16,833/Month)

  1. Insurance - Rs. 2,00,000/- (40K/Annum)
  2. Fitness Certificate Charges - Rs. 10,000/- (2000/Annum)
  3. Tyres Replacement - Rs. 1,25,000/- (25,000/Annum)
  4. Quarterly Taxes - Rs. 1,00,000/- (5000/Quarter)
  5. Mandatory Maintenance Charges - Rs. 3,75,000/- (Clutch Change - Rs.75,000/- + Oil Change charges of Rs.10,000/- for every 10K Kms)
  6. Battery, Electrical, Painting & Denting etc - Rs. 2,00,000/- (40K/Annum)

Earnings:

Owner cum Driver: 77,750/- per month x 60 months = 46,65,000/-

Gets 25 trips per month x 250 Kms per trip Min.Rental x 11/Km

  • Cab Cost :  25 x 250 x 11 = 68,750/-
  • Driver Batta : 300/Batta x 30 Battas = 9,000/-

Fuel Cost - 25 days x 250 Kms x 6.36/Km = 39,750/- x 60 months = 23,85,000/-

Rs.70 per Litre Avg Price (KA-66/- , TN-71/-, AP-73/-) that gives 11 Kmpl that costs Rs.6.36/km

Net Earning - 21,167/- (Revenue 77,750 - Fuel Cost 39,750 - Expenses 16,833) that will go towards the Driver living and what about the 15,00,000 investment made on Cab !!

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Its my sincere request to each of those

  1. "Car Rental Agents - those who works on Per Km margin",
  2. Funded Companies those who are charging "13-14/Km to customer but paying 10.5-11/Km to Cab guy"
  3. Owner cum Drivers those who exchange the duties among each other and always worried about that per Km margin shared to the travel agent and instead bypassing the customer to reach out to them directly

Please bring back the 300 Kms per day Minimum Rental for Tourist Cabs...Fix good Price Per Km considering current fuel cost and the kind of expenses as mentioned above.

I recommend

  • Hatchback : 300 Kms/Day x 9/km = 2700/-
  • Sedan : 300 Kms/Day x 10/km = 3000/-
  • SUV : 300 Kms/Day x 14/Km = 4200/-
  • Crysta : 300 Kms/Day x 15/km = 4500/-

You guys take 10% Commission for passing those bookings which will ensure a better ecosystem

 

Thanks & Regards,

Jyothi Reddy

Founder & Director - CSR Cab Services Pvt Ltd

www.hireinnova.in 

 



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