First marred by Ola, Uber and now hit by Mahalakshmi scheme, auto drivers in Hyderabad are miffed

Auto drivers are miffed

Over the past three decades, since transitioning from manual carts and rickshaws, autos have excelled in becoming an affordable and readily available means of transportation for the Indian middle-class. Whether at railway stations, bus complexes, offices or cafes, autos are omnipresent, ready to drop us off at our doorstep — a true champion of last mile connectivity. 

It’s not without reason that popular film stars embrace the roles of auto drivers, or politicians don the khaki shirt during election campaigns. In the era of social media, you often see auto drivers turn into content creators and inspire memes too. This time, however, auto drivers in Telangana are taking to social media to highlight their plight.

Providing free rides to women is a remarkable feat. However, the adverse effects of the scheme seem to have been neglected.

South First traveled across Hyderabad and discussed the concerns of the auto drivers. Most of them expressed the feeling that their customers, especially working women, are now preferring free bus rides over auto services.

This comes at a time when many tech-savvy commuters already prefer online two-wheeler rides, reducing the demand for auto services even on online apps, such as Rapido, Ola, and Uber.

Also Read: ₹60k-70k crore, or more? What is the cost of 6 Cong guarantees?

The free bus rides for women

On 9 December, the Congress government, led by Anumula Revanth Reddy, launched the zero-ticket ride under Mahalakshmi scheme for women across the state in RTC buses, implementing one of its six poll promises.

తెలంగాణ మహాలక్ష్ములకు అభినందనలు.

సోనియమ్మ ఇచ్చిన మాట ప్రకారం అన్న కార్యచరణ మొదలైంది.

తెలంగాణ ఆడబిడ్డ మోములలో ఆనందం చూడడమే ఇందిరమ్మ పాలన లక్ష్యం. అందులో భాగంగానే నేడు ఆర్టీసీ బస్సులో మహిళలకు ఉచిత ప్రయాణం పథకాన్ని కాంగ్రెస్ ప్రభుత్వం ప్రారంభించింది.

సంక్షేమానికి ఇది మొదటి… pic.twitter.com/xFOfyuPVRd

— Revanth Reddy (@revanth_anumula) December 9, 2023

Since then, a notable increase has been observed in the usage of public transport, particularly in the Hyderabad capital region. Many on the internet are applauding this move.

Rode the Palle Velugu RTC bus today to check on the status of free transport for women. Encountered a bus full of girl students and working women, and their faces reflected a sense of pride and ownership – a true success. Investing in women is an asset, not a liability.#RTCwomen

— Sujatha Surepally (@ssurepally) December 11, 2023

Speaking to South First, an official source said that The Telangana State Road Transport Corporation is expecting women’s share in ridership to go from 40 percent presently to 55 percent by the year-end.

In response to the Mahalakshmi zero-ticket scheme, South First did a report on how women are expressing enthusiasm and support for the initiative. (Click here to read)

Following the announcement and the subsequent increase in public transport usage, auto and taxi unions are raising serious questions about the impact on their businesses.

Also Read: KTR takes on Congress over budgeting for 6 guarantees 

The plight of auto drivers

On the weekend of 15 December, a BTech student and part-time auto-driver named Mala Chandu was waiting at the crossroads in Lingampally, anticipating customers.

Frustrated, Chandu engaged in a conversation with his colleagues parked beside him.

When approached by South First, Chandu expressed amazement, revealing that he had completed only one ride by midday, which was not the usual business trend on weekends.

With very few customers, auto drivers are waiting for their turn in Beeramguda circle. (Bhaskar Basava/ South First)

Chandu raised a question in his surprise, pondering why more people seem to prefer the free bus rides over the free medical and education services provided by the same government. He was referring to government schools and hospitals covered under insurance.

Sayed Gouse, a union head from Beeramguda stand, hoped that a majority of people will discontinue availing of free bus service soon. “Since it has just begun, more people are exploring it, but I feel they would discontinue after a month,” he was optimistic.

However, Syed clarifies that it’s not the free rides causing the impact but rather the exploitation from Ola, Uber, and Rapido that has significantly affected their business. He explains that these private apps pay them around ₹11-13 per km and charge a commission of 10-20 percent on each trip.

When asked about the reason for the long queue at Beeramguda circle, auto drivers informed South First that they are not technically equipped and heavily rely on shared rides. “The introduction of free bus rides has led many autos to queue here, as there is only one bus to the smaller localities in Beeramguda. This provides us with an opportunity for business,” another auto driver Syed Rehman added.

Also Read: Praja Vani attracts huge crowds seeking resolution

Auto drivers want aid as promised

Syed prays that Congress should implement the promise of ₹12,000 to each auto driver per annum and reducing pending challans to 50 percent and implementing a single-permit policy to accommodate the loss.

Another auto driver, Prakash Manne, from Manjeera Circle in Hafeezpet, shared with South First that he had only gotten two rides, one online and another offline, since that morning.

Manne Prakash staring at his phone for the rides. (Bhaskar Basava/ South First)

Recalling the past, Prakash mentions, “During YS Rajasekhara Reddy’s tenure in the United Andhra Pradesh, the meter rate was ₹11-20 with the diesel rate around ₹35-40. Now, the diesel rate is ₹98, and the rate per km offered online remains the same. In addition, we also need to pay platform fees to these online apps, as we have no option left since many customers are booking online.”

Prakash appeals to the state government, urging them to negotiate with these private players to address exploitation concerns or to establish government’s own portal where customers can book, and they can pay reasonable platform fees to the state government instead of private players who charge hefty commissions.

Santosh Naik displays the ₹200 he earned since morning with a sense of disappointment. (Bhaskar Basava/South First)

A few kilometres away, at least half a dozen autos were stalled, and their concerns mirrored those of Prakash. They received neither offline rides nor online ones. Auto driver Santosh Naik remarked, “Normally, from Hitech City to Madhapur, we get a good number of customers, but today I had only one ride, earning just ₹200.”

Santosh mentions that the majority of autos run on either diesel or CNG. He added, “The current diesel rate is ₹98, while CNG stands at ₹430. The traditional meters that used to run and charge around ₹20 have become less common since the rise of online platforms, as people now choose rides based on budget rates.

Hoping for online rides later in the day, Santosh and his other two colleagues were waiting with a positive outlook.

Also Read: How Karnataka leaders won Telangana for Congress

What do economists say? 

“In an unequal society, each social group will ask for compensation from the government; if the interests are conflicting, it should be resolved through competition,” said Professor RV Ramana Murthy, Dean of the School of Economics at the University of Hyderabad, to South First.

When asked about the concerns of auto drivers and taxi workers, Prof Ramana acknowledges that their concerns are valid. However, he emphasised that not only free rides, but even effective implementation of bus or metro services would impact auto drivers.

“So, basically, whenever there is a change, there will be an impact on existing players. For example, when the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) was introduced in 2005, farmers argued that they would not get labour as everyone prefers NREGA or demands higher wages. The same happened with manual rickshaw drivers when autos were introduced; they claimed that auto-rickshaws were spoiling their livelihood,” Prof Ramana pointed out.

Prof Ramana contends that one cannot morally complain or resist change, and existing players should compete. In this case, auto drivers can compete with bus services.

“Auto and private taxi players used to charge quite high before the advent of online apps, paving the way for the emergence of platforms like Rapido, Ola, and Uber. These online apps entered the market by offering free mobiles and incentives to traditional players, consolidating all these services under one umbrella with budget-friendly rides,” added Prof Ramana.

He suggested that amidst the allegations of exploitation with heavy commission and low pay, the state government can explore developing its own online app. Further reasonable demands such as a subsidy in the diesel and CNG rates be considered.

Regarding the potential loss to the exchequer, Prof Ramana stated, “There would be a loss to the exchequer, but you should see if it is doing larger good or not. Free rides would encourage many women who have opted out due to expense constraints to now travel for work. Additionally, women already using buses would save money, and this savings could be spent back at home, increasing economic activity.”

Another Economics professor from Hyderabad Central University, K Lakshminarayana, added, “The scheme is good, but as days go by, changes should come about gradually.  

When asked about the specific changes, Lakshminarayana explained that government employees of the central and state, as well as other private employees with white-collar jobs, should be excluded from the zero-ticket scheme. This exclusion is justified as they already receive travel allowances from both the government and their respective companies, he noted.