The thought paper presentation in this module is a case study analysis on the “Individual Entrepreneurs’ ( Taxi Drivers ) operating on the Middle Distance Passenger Vehicles mode, who are currently representing the unbanked and unorganized transport model segment, as a predictive Means of future target viable clients, for us to bank on, based on multiple factors as observed, with the over all objective of bringing them to be part of ‘Financial Inclusion

1. Thought PaperBanking The Unbanked: Taxi Loan
Means of Banking The Unbanked:
“Underprivileged Individual Taxi Operators'’
Loan
Banking the Unbanked : Taxi Loan Thought Paper Presentation
Taxi Financing - Individuals
( Viable Opportunity, to Bank on )

2. My family is
middle class
Had good
Public
Relations in
the society I
live
Own house
comfort and
father had
few savings
for my career
Iam a
graduate
unemployed
Mr. X (Unemployed graduate)
Driving Car
is my
passion &
hobby
Case Study
Banking the Unbanked : Taxi Loan Thought Paper Presentation
Can my
hobby be a
profession !!
Can I get
a loan ?
Mr. Y (Professional Driver)
My salary
income isn’t
sufficient for
survival
Need
additional
income to
meet family
obligations..
I want to be
Owner cum
driver and can
do my own
business
Can I get
a loan ?
Had 1 acres
land in my
name given
on lease
Had 15 yrs
of taxi
driving
experience
Iam aged
45, and had
wife and 2
school going
children.

3. Indian Economy is growing, posing robust growth trend for the current and years coming by, with sound policy and regulatory
initiatives, backed by stable political environment governed by visionary leadership directing the Nation move on the Directed Road
Map with “Make in India” and “Swatch Bharath” initiative appealing and attracting Investments both from Domestic and International.
Positive business sentiments, Improved Customer confidence to earn and expense, and more over enact of corrective measures for
controlled Inflation by the regulatory…are a few Means, to boost and correct the Economic growth.
Banking the Unbanked : Taxi Loan Thought Paper Presentation
What is this ‘Thought’ all about ?
Real Estate, IT, Pharma, Health-Care, Aqua, BPO, Manufacturing, Hospitality, Tourism and other IT & ITES companies are observing
a shift to these cities for cheaper Real Estate, Quality Education, Infrastructure & Manpower with Talent Pool etc..
Urban transportation is an important element for Smart Cities. Hence, the need to review city transportation systems in India which
provide new and enhanced infrastructure for public transportation is of significant, as is currently run under the Unorganized Model
Segment which is in the phase of transformation to Organized mode, extending viable opportunities to Finance Industry like us, to
bank on the Unbanked.
The thought paper presentation in this module is a case study analysis on the “Individual Entrepreneurs’
( Taxi Drivers ) operating on the Middle Distance Passenger Vehicles mode, who are currently representing
the unbanked and unorganized transport model segment, as a predictive Means of future target viable clients,
for us to bank on, based on multiple factors as observed, with the over all objective of bringing them to be part
of ‘Financial Inclusion.’
Smart Cities - Transforming Life - Transforming India :
As the global population continues to grow at a steady pace, more and more people are moving to
cities every single day. Urban areas also contribute a higher share of GDP. In India, the urban
population is currently 31% of the total population and it contributes over 60% of India’s GDP. It is
projected that urban India will contribute nearly 75% of the National GDP in the next 15 years. Cities
are accordingly referred to as the “Engines of Economic Growth.” 100 Cities (Tier 1, 2 & 3 )
locations, across the Nation have been identified by the Central Govt. to develop as “Smart Cities” in
the next 5 years to handle this large-scale urbanization and finding new ways to manage
complexity, increase efficiency, reduce expenses, and improve quality of life.

4. Banking the Unbanked : Taxi Loan Thought Paper Presentation
The Demand & Supply for Travel
( Need of Passenger Transport )
Urban population of India is engaging in a variety of economic activities in rapidly
expanding cities, which are therefore, encountering fast escalations in urban travel
demand. A variety of transport modes, such as, walking, cycling, two-wheelers, Para-
transit, public transport, cars, etc. are used to meet these travel needs. Travel demand is
determined by a number of factors, the primary one being the size of the population. Other
determinants include: average number of journeys performed by a resident each day (per
capita trips) and the average length of each such journey (trip length). Travel demand, has
thus grown faster than the population, because it is a function of both the rising number of
trips undertaken by the incremental population as well as increased trip lengths
necessitated by expanded city size. Further, it has been found that residents on an
average, tend to perform more trips per day, as per capita income levels go up.
A study carried out by the Ministry of Urban Development, covering 21 cities in the
country, suggests that more than 85 % of the trips in a city are on account of either
Employment / Education etc..basic needs. 15% of the total trips are undertaken by
walking and is anticipated, that this share tends to reduce as City size grows, having a
direct affect on Public Transport facilities.
Price
Quantity
Equilibrium
PERSONAL CHARACTERISTICS
Demographic (Age, Gender etc)
Socio-Economics
Personal Preference
TRIP CHARACTERISTICS
Work
Tourism
Shopping
Education
Time of Trip
Origin & Destination locations
TRANSPORTATION SYSTEM
Travel route
Road & Transit Network
Cost of Travel
Travel Conditions
Reliability of Service
Weather / Climate
Public Transit Services
Parking slot availability

5. Banking the Unbanked : Taxi Loan Thought Paper Presentation
Passenger Road Transport services in India comprising of Rail and Road Transport systems. Buses take up over 90% of Road Public
Transport in Indian cities, and serve as a cheap and convenient mode of transport. India’s passenger road transport for
short, medium and long distances is bus oriented and even compete with railways on certain long-distance routes by offering night
services are mostly run by Government owned State Transport Corporations (STC).
Road Transport Corporation Act, 1950 enabled State and Central Governments to establish the Road Transport Corporations (RTC).
||rly, the Motor Vehicles Act, 1950 was subsequently amended to make special provision for State Transport Undertakings
(STUs).This Act was further amended in 1969 for promoting “State Monopoly” in passenger road transport services. India was among
the first few counties to experiment with Private participation in Urban Public Transportation.
Evolution of Taxi business
( Indian Economy )
With a land area of 32.87 Lac Kms. and an estimated population of 125 Cr.; transport in
India is both a necessity as well as a convenience. Since the Economic liberalization of
the 1990s, development of infrastructure in the country has progressed at a rapid
pace, has paved the way for entrance of Private Operators (Un-Organized Segment) to
start facilitating Transportation Services with extending a cutthroat competition to the
RTCs’ and STUs’ in all modes of transport by Land, Water and Air.
Mega Cabs and Fast Track Taxi came into existence in 2001 under Organized Sector
with self owned fleet. However, the real boom started since 2006 with entrance of more
Pvt. Ltd Operators having eying on the BPO,IT and ITES related industry segment and
are more successful during the following yrs to till date, extending direct employment
opportunities to millions of professional driver labor force and indirect employment to
allied sectors of automotive and service industry supporting economy growth overall.
State governments having identified this as a service industry basis long term direct and indirect employment opportunities to the
young, is encouraging taxi cab services by issuing permits for fleet operators and licenses to operators. With increased focus on
attracting international investors, and promoting tourism, the need for organized taxi services is inevitably growing. In this
context, transport systems having been given due focus and high priority attention, to transform this segment to be
Organized, Transparent and more Competitive under the regulatory guidance mechanism and by provide of Infra structure facilities
with state of art technology ,Income Tax benefits exemptions and relaxations.
Fig. Unorganized Taxi Model

6. Banking the Unbanked : Taxi Loan Thought Paper Presentation
Stage 1 – Inception
Fleet Ownership: Fleet fully owned by the company, with
salaried driver employees. Cars operate only on incoming
bookings. High EMIs and maintenance costs along with high
Operating Costs than Revenues
Booking Model: Telephone calls only
Payment Model: Cash was the dominant model
Segmentation: The market only had one or two types of
cars and per kilometer charges were pretty similar
Outcome: High control on service quality, but huge pressure
on utilization rates, as only source of incoming bookings
Advent of Taxi, into Organized Sector
(Pvt. Operators business model approach)
Stage 2 – Transformation
Fleet Ownership: Fleet Aggregation Model, where in Small Fleet
Owners / Single Car Owners can put the company brand on the car,
and get registered with them. Cars are free to take up non-company
rides, but for every company-initiated ride, they pay the company a
fixed percentage as commission.
Booking Model: Telephone calls, Websites
Payment Model: Cash, / Credit & Debit cards though POS terminal
Segmentation: Multiple segments including Sedans & MUV’s
Outcome: Low CAPEX as Company didn’t Own Fleet. Quality of
service dropped, as the company had no control on the cab
availability and service quality from the private fleets.
Stage 3 – Growth
Fleet Ownership: Hybrid model where part of the fleet is owned by the company and part of the fleet is from an aggregation model
Booking Model: Telephone calls, Websites, Mobile Apps
Payment Model: Cash, In-cab POS terminal for Credit / Debit cards, Mobile App
Segmentation: Segments expansion, including launch of hatchback cabs at a lower price point
Outcome: Better control on cab availability and service quality with GPRS Monitoring Systems
Fig. Organized Taxi Model

7. Banking the Unbanked : Taxi Loan Thought Paper Presentation
Modus Operandi
( Aggregator Approach )
Customer
Venture Capitalists
(Service Provider)
TheUnbanked:“UnderprivilegedIndividualTaxiOperators'’

8. Banking the Unbanked : Taxi Loan Thought Paper Presentation
Taxi Market Share
( Factors supporting growth & hindrances to growth )
US$ 9 Billion
Foreign Equity Investment
Entry of Multiple Operators
Lack of Skilled Drivers
Regulatory Issues
Technical Issues
Demand and Supply gaps
Competitive Mkt. Price
90%
5%
3%
2%
Unorganized Sector $ 8.5 Billion
Owned Fleet Operators $125 MN
Aggregation model $250 MN
Affilition model $75MN
Customer Satisfaction & Convenience
Technology Usage
Concerns from Local Trade Unions

9. Banking the Unbanked : Taxi Loan Thought Paper Presentation
The Price War
( Means for Economic correction basis of “Time, Value & Money,” theory in the Passenger Transport Segment)
Parameter Taxi Segment Autoriskshaw
Passanger Accomodation with luggage,Insurane
and long distance travel facility
4P+ 1D with luggage carrying capacity for both Intra & Inter city
Travel
3P+1D with restricted luggage carring capacity and Intra city
travel only.
Metered Billing and Price Fixed and Unique across Differs from Owner to Owner though governed by regulator
Mode of Payment for Charge and Payment receipt
acknowledgement
Cash / POS terminals / Online Mode of Payment / Pre-paid /
recharge coupons. Yes bill is provided
Cash mode of payment with no billing receipt in place
Min. Price / Km including Air conditioned Travel
and Late-night return charge
Min. Rs. 49/- for 4 km and 12/- for additional km with
Airconditioned Travel and Zero pollution exposure and no late
night return charge collected
Min. Rs. 20/- for 2 km and 13/- for additional km with Open
air travel and exposure to pollution and Mandatory Demand
from Late night return charge
Entertainment Facility with
Audio,Video,Mobile/laptop recharge facility &
Time pass provision
Yes along with supply of News Paper magazine and water
N/a only Audio systems provision based on the interest of
the owner
Dirver ID display & Laguage hindrance
Mandatory ID to display and language communication hindrance
rarely seen
N/a as no driver carry ID card apart from Driving Licence
and KHAKI shirt representing "Labour Dress Code" and
language hindrance often seen
GPRS Tracking Systems with enhansed Safety &
Security means like Air Bag,Seat belt
provision,danger alarm trigger
Yes N/a
Women Drivers provision based on requirement of
Lady Passangers in specific on security means
Yes in few metro cities N/a
Taxi Aggregation model has enabled the market provide Technology platform that links cab-owners and operators with passengers.
While the Indian taxi market estimated to have a value between $6 billion (Rs 36,000 crore) and $9 billion (Rs 54,000 crore), only 4-
6% is organized, meaning that this is just the beginning. The auto-rickshaw market, being unorganized and only just beginning to see
Corporate Interest. Metropolitan cities such as Mumbai, Delhi,Hyderabad,Chennai and Bangalore have about more than 1Lac autos
each. Believe, this is a curtain raiser and beginning of new era for old monopoly mkt. players to re-define and correct the service level
standards and approach with the ever changing needs of the passengers inline with market trend. In pure Commercial terms, "The
Price War” could be viewed as gaining market share in very short span period for one Aggregator to take advantage of other. But to
remember, this couldn’t be a long run strategy, as this aims to create trend-set for rest to correct and offer ||r and more viable benefits
under the corporate tag of being ‘Organized’ on long run strategy.

10. Banking the Unbanked : Taxi Loan Thought Paper Presentation
Competitive Advantage, though Price is “Economy”
(Basis “Time, Value & Money,” factors in the Passenger Transport Segment)
Huge capital investment outlay
and dependence of funds on
both Central and State Govt.
Political unrest and economy
sentisitivity posing direct impact
on infrastructure related projects.
Domestic issues comprising of land acquisitions
procurement, backed by local political involvement,
religious location sentiments, Municipal administration
and environment clearance, traffic constraints etc.
High Gestation period
Projects not designed on long run strategy
keep in view of YOY incremental Demand of
Increasing population along with other supply
factors resulting congestion overall.
Fixed route of Operations along with no
differentiation of class segment, privacy and
basic amenities, though fair price is low.
Metro
(Economy)
RTC
( Economy )
Outdated buses(Age old vehicles still in
use, along poor maintenance resulting
frequent bus failure, increase in
accidents,trafic jam etc.
Role of Trade Unions backed by political
interference resulting frequent strikes, stop and
damage especially during political unrest
Irregular price rates charged and route of
operations by Pvt. Operators, though no
direct price regulation vested in the hands
of Govt.., backed by Corruption.
Demand Vs Supply gaps, Irregular time
schedule of operations, resulting mass crowding
Poor Customer Service Levels backed by
unfair service approach by staff towards
customers.

11. Banking the Unbanked : Taxi Loan Thought Paper Presentation
Pricing is fixed with Regulated Meters and Billing
Overall growth of
“Organized Taxi Segment ”
Growth Prospects - Taxi Segment
(Organized Pvt. Operators Growth Model in Indian Economy )
Image with Functional Discipline across Staff
Customer First - Priority Service
Secure Travel, with ease of Comforts
Customer Incentives ( Discounts, Rewards )
Convenient mode of Payment – (Cards Payment )
Supporting Factors
Customer View Point
Low Overhead Costs
Shift of Ownership Burden
Better Drivers’ Result – Minimize of Operating Cost
Free, “Word – of – Mouth” publicity
Supportive ‘Regulatory Authority’
Increase in Percapita of Individuals & life-sytles
Business View Point

12. Banking the Unbanked : Taxi Loan Thought Paper Presentation
611
262
566
1439
0
500
1000
1500
2000
SO MO LO Sum
West 1_Total
30+
90+
536
256
517
1309
0
200
400
600
800
1000
1200
1400
SO MO LO Sum
West 2_Total
30+
90+
1910
1188
3105
6203
0
1000
2000
3000
4000
5000
6000
7000
SO MO LO Sum
North 1_Total
30+
90+
384
135 99
618
0
100
200
300
400
500
600
700
SO MO LO Sum
North 2_Total
30+
90+
703
184
316
1203
0
200
400
600
800
1000
1200
1400
SO MO LO Sum
South 1_Total
30+
90+
541
417
856
1814
0
500
1000
1500
2000
SO MO LO Sum
South 2_Total
30+
90+
217
89 98
404
0
100
200
300
400
500
SO MO LO Sum
East - Total
30+
90+
North 2 { 30+ @ 3.48% & 90+ @ 2.10% }
(Small Operator Segment )
Small Operators
Medium Operators
Large
Operators
Taxi Segment – Portfolio (SRTO,MFO & LFO)
(Delinquency Analysis)
* Source : Bank

13. Impact of Organized Model Approach on CV Sector
Banking the Unbanked : Taxi Loan Thought Paper Presentation
Unorganized CV Transportation Sector
An Insight understanding
of
“Commercial Vehicle Transportation Sector”

14. 55%
20%
15%
10%
SVO - 1 fleet owners
Small Fleet Operators (2-10)
Medium Fleet Operators (11-50)
Large Fleet Operators (51+)
Transportation and Truck Ownership Structure
(Unorganized CV Transportation Service Sector)
Truck
Ownership
Transportation
Cargo Passenger
30% 60% <1% 5% 7%
Rail Road Air PipeSea
Medium Distance
50-350kms
Long Distance
> 800 kms
Short Distance
Upto 350kms
Banking the Unbanked : Taxi Loan Thought Paper Presentation
Producer
Consumer
CV
Segment
India's infrastructure and transport sector contributes about 5%
of its GDP. India has the world's second largest road network
covering more than 4.3 million kms., comprising of Modern
highways and narrow road ways. As of Dec’ 2014,it had
completed and placed in use over 27K kms of recently built 4
and 6 highway lanes connecting most of its major
manufacturing, commercial and cultural centers carrying 65% of
freight and 87% of passenger traffic.

15. Banking the Unbanked : Taxi Loan Thought Paper PresentationBanking the Unbanked : Taxi Loan Thought Paper Presentation
Forces
Impacting
CV Segment
•Low own equity on Assets basis huge discount
from manufacturer and easy availability of loans
making the industry vulnerable with intense
competition.
•Lack of Skill labor and exploitation and switch
over of drivers to Local Operations by purchase
of own Taxi / ULCV (Driver cum owner)
•Industry is highly customer oriented with
multiple vendor options available to customer
makes it easy to switch over.
•Low industrial production backed by
unfavorable Economy ,Political ,geographical
and natural factors having direct impact on
truck industry.
•Consigners of bulk goods have high bargaining
power due to presence of many small Operators.
•Commitment of large consignment volumes
often force owners to undercut the prices.
•Monopoly, Technology & price are dictated by
few manufacturers
•Govt. influence on fuel prices makes it
difficult for operators to predict ,control and
pass through fuel costs to customers.
•Use of Outsourced trucks, is often difficult to
get trucks from owners at agreeable prices
during peak seasons, impacting profit margins
•Aim of Truckers to increase truck utilization , often by
undercutting freight rates , leading to tremendous
margin pressure on the industry.
•Lack of Legislative and regulatory control, inter-state
barriers ref. to taxes, State RTO,Excise,Forest duty etc
•Large players offering value-added services including
warehousing ,supply chain solutions able to influence
freight costs etc. there by influencing margins further.
Disparities in Commercial Vehicle Segment
(Characteristic features of Unorganized CV Transportation Segment)

16. Banking the Unbanked : Taxi Loan Thought Paper Presentation
Replica of Aggregation Approach on CV Segment
(A step forward to Transform CV sector into Organized, through anticipate advent of FDIs’ – Venture Capitalists)
The CV transportation segment is a vital part of the Logistics industry which is the most unorganized in
India. There are a number of Internal & External factors that are inter-linked and have a greater impact
on the system overall. Changing or improving one link of the chain shall not give positive results. The
factors behind comprising State politics, numerous tax laws, Toll Mafia, corruption, pay-scale of
drivers, vehicle conditions, roads, cultural differences, cost factors, weather conditions, lack of
professionals and expertise, low technological advancement to implement etc..do have a direct impact
on the efficiency of this industry. A well organized Logistics company in India shall be comparatively
costly than its competitors, that it will be difficult for them to survive. Further, the industry is ruled by
traditional thinkers backed by illiterate old , whose thinking dynamics not inline with the ever changing
world, needs a change.
So improvement is required at every foot step, be it small in magnitude and this brings an opportunity to
Venture Capitalists to eye on..in ||r lines of Organized Taxi Segment.
GST (Goods & Service Tax), as a means of regulatory measure from Govt., is must for the Industry. But
at same time it is important to aim for a Organized Transport (Trucking ) Industry followed by provision
and execution of Infrastructure related projects comprising of National Highways & State Highways in
time frame and by welcome of FDI’s in Trucking and Highways with regulatory guidelines in place
addressing few of following priorities comprising of…
 Promotion of Information Technology by means of providing technology, training and investment.
 Training of Labor force (Drivers, Cleaners and support staff)
 Standardization of pay packages and extend of monitory benefits as well health and Insurance.
 Encouragement and promotion of transport co-operatives for more efficient and effectiveness.
 Promotion and use of multi-axle vehicles and tractor-trailer combination would help reduce transport
costs. Further, vintage vehicles more than 10/12 yrs to be phased out.
 Manufacturers and dealers to stop luring operators by short term discounts factors. Alternatively
promote and extend value added services like extended warranty, AMC etc.
 Alternative means of fuel with emphasis on “Bio fuel” and its prototypes to be largely explored and
promoted by both Manufacturers and Govt.

17. Banking the Unbanked : Taxi Loan Thought Paper Presentation
Transformation of Change. The future Outlook
(Aggregation Model Approach (Organized) - Impact on Commercial Vehicle Transportation sector)
Organized CV Transportation Sector
Fig. Organized Taxi Model

18. Banking the Unbanked : Taxi Loan Thought Paper Presentation
Ways and Means of Taxi Funding to Mr.X & Mr.Y
(Thought Proposal with a Policy guideline )
Proposal Norms for consideration and funding of Taxi Car Loan basis of Agri land - PSL Classification
FTNEX / FTU - Direct Agri Variant
Credit Norms Norm
KYC As per bank KYC specifictaion guidelines
Residence Ownership Mandatory
Residence Stability Min. of 2 yrs at current place of residence
Tele contactibility
Land line telephone either at office / residence / Postpaid with min. 3-6 months
old.
Co-applicant / Guarantor Family members ( blood relatives only) / Ext. Guarantor
CPV As per bank norms
Maximum Exposure Max. 1 vehicle
Category of Segment vehicle for funding A1,A2,A3 & MUV ( Select Models only)
Min. Agri land holding (1-4 acres ), (4.1 - 7 acres) & (7.1 acres & above)
LTV offerings
60% Ltv - Agri land holding of 1 - 4 acres (A1 & A2 Segments)
70% Ltv - Agri land holding of 4.1 - 7acres (A1 & A2 Segments)
75% ltv - Agri land holding of 7.q acres and above with (A1,A2 & A3 Segments)
with additional mitigants..like banking/ cibil score /other sources of income/
contract copies etc.. with regular source of income etc. parameters
Guarantee
Internal Guarantee by family blood relatives for A1&A2 Segments with 1 - 4 acres
land
External Guarantor with min. 1 fleet owner self owned with Own house comfort/
12M repayment of AL/CV/Tractor Segment live (or) closed in 12M with
contactibility norms to be met for A3 & MUV segments
Viability Sheet both Agri Income and Transport income on hire to be captured and
calculated
As per STD. format attached to be calculated during TVR by Credit for proper
viability assessment / RM at time of login, post client interaction
Credit Assessment Report (CAR )
Mandatory to be updated by Sourcing Relation Ship Manager for every Taxi
Proposal for Credit Assessment and funding. ( Brief profile with deployment &
Viability ) and Credit Appraisal to be done basis Telephonic Interview by Cr.Mgr
and satisfactory understanding
Location of funding Selected Tier 1, Tier 2 & Tier 3 locations
Segment Segment Definition Nature of Business
First Time User (FTU) with No
Experience.
0 vehicle owner with Nil Experience in Passanger / Goods
Transportation
Income Generation from Car hiring
FTU
0 vehicle owner with min. 2 yrs. Experience in Transportation
(Goods / Passenger).
First Time Car buyer for hiring purpose and income
generation from Car hiring

19. Banking the Unbanked : Taxi Loan Thought Paper Presentation
Risk & Viability Assessment in funding Mr.X & Y
(Credit Assessment Approach – Appraisal Methodology - Thought proposal)
Management Risk
Asset Risk
Financial Risk
Business Risk
Funding Terminology
Fuel Costs Tyre Costs
Salary /
Allowances Permit Costs Road Taxes
Maintenance
Costs Commission
EMI
Viability

20. Banking the Unbanked : Taxi Loan Thought Paper Presentation
Future Outlook
(Organized Taxi Sector)
Govt. of India has identified 100 Cities (Tier 1, 2 & 3 ) locations, across the Nation to develop as “Smart Cities” in the next 5 years to
handle this large-scale. State capitals, and many tourist, heritage cities are expected to witness a rapid upgrade of urban
infrastructure and online services to citizens, enabled by Information Technology. Union Budget of 2014-15 having allocated a sum of
Rs. 70 billion (around $1.2 billion) to accomplish this task. In order to allow foreign investors to have a larger role in the development
of Smart Cities, the entry requirements for Foreign Direct Investment (FDI) in terms of minimum built up area and capital conditions
were substantially reduced.
India IT market is expected to grow in the range of 13% to 16 % when compared to the 2014 IT market size. Over the period of next
3 to 4 years, the growth rate is expected to be robust and in the range of 13 to 15%.
With the advent of a new breed of companies which are essentially taxi aggregators, who
have used technology enablers like Smartphone apps, and book a confirmed taxi within
minutes and get the bill sent to the email addresses along with promising cashless
rides, pre-paid wallet along with GPRS Tracking system and security threat alarm devices
with central monitoring devices in place, this business model has proved quite popular in
major metros and is now being driven into Tier II and Tier III cities as well.
Central Govt. recent announcement to pay 50% Insurance Health premium for auto, taxi
drivers under “Rashtriya Swasthya Bima Yojna”(RSBY )is of Industry Identity .
State governments are encouraging cab services by issuing permits for fleet operators and
licenses to operators. With increased focus on attracting international investors, and
promoting tourism Industry growth the need for organized taxi services is inevitably
growing. Given the demographics of India and this encouragement from government, the
cab industry is likely to observe healthy growth in the coming years.
"Technology has changed the rules of the game. Earlier 'Drivers used to reach Customers.'
In the current mkt. dynamics, this has changed to 'Customers need to reach Drivers.' It is
helping create an aggregation economy at a wider scale and making the industry more
transparent for every one to eye upon to Tap the Untapped business.”

21. Banking the Unbanked : Taxi Loan prashanth.ravada@gmail.com
The paper presentation shared in this module is based on knowledge experience and the multiple discussions had with taxi operators
who r being ‘Driver Cum Owners’ and now forming part of the bigger corporate under the Aggregation model approach serving the
economy during my Month on Month Market Visits as practiced.
The thought paper presentation is a case study analysis on the “Individual Entrepreneurs’ (Taxi Drivers) who are currently
representing the unbanked and unorganized transport model segment, as a predictive Means of future target viable clients, for us to
bank upon, based on multiple factors as observed, with the over all objective of bringing them to be part of Financial Inclusion.
Acknowledgement
 Lorry Owners representing Vijayawada & Guntur Lorry Owners Association
 Mr. Mehdi Miyan – Rumaan Cabs ( Taxi For Sure )
 Mr. Hassan Agha– Sony Cab Services ( Taxi For Sure )
 Mr. Syed Matin Ali –Alekhya Travels & Logistics ( Taxi For Sure )
 Mr. Sudhakar Gavvala – Umbrella Retail Services Pvt. Ltd. ( Taxi For Sure )
As part of the project undertaken, I acknowledge all the 3 wheeler auto drivers, the truck drivers, Car dealers of Coastal
AP, Telangana for share of significant info on this case study and My gratitude to all the my business colleagues,Sr.officials (Sales &
Cr.) representing competitor financiers for their time and insights on their internal policy, funding terms, Portfolio behavior and risk
terms along with share of knowledge.
Special mention to My driver friends’ in-line who had shared their experience during the course of my journey across locations of AP
& Telangana.