A clutch of startups have sprung up to address the issue of taxi service providers charging double the fare for one-way travel.Jaipur-based Hippocabs, Ahmedabad-based Yatayat and recently funded Noida-based AHA Taxis are three of such intercity taxi aggregators that have come up in the past six months.

Hippocabs, which offers services on Jaipur-Delhi route at present, was conceived after Sahil Agrawal, 21, landed at Delhi airport while returning from Germany to catch a connecting flight to Mumbai but decided to directly visit his parents in Jaipur.

Agrawal found taxis charging double fare, including return fare, for the one-way trip. So he opted for a luxury bus ride to Jaipur instead. This experience prompted him to join hands with Sagar Agrawal to set up Hippocabs, a taxi aggregator which charges one-way fare and also allows ride sharing. The idea has clicked and the company plans to offer services on more routes soon, he said.

“People end up spending over Rs 1 crore per week on travelling between Jaipur and Delhi in luxury buses, taxi and trains,” said Agrawal.

The company has more than 3,000 registered users and it is growing at more than 30% a month, with current average gross merchandise value of Rs 5 lakh. Ahmedabad-based Yatayat, which started in April this year, provides services in 12 cities including Ahmedabad, Vadodara, Surat, Rajkot, Udaipur, Mumbai, Pune, Nashik, Delhi, Agra, Jaipur and Chandigarh. It plans to add 100 routes in the next six months.

“There is a huge scope of growth in this segment. This service is ideal for people planning to book tatkal train tickets, families travelling in luxury buses and intercity airport drops,“ said Pranav Parikh, a co-founder of Yatayat.

Parikh said radio taxi drivers are willing to work for outstation trips as they get better returns, especially since intercity taxi aggregators are failing to provide them enough business.

Amit Grover, co-founder of AHA Taxis, which recently got angel funding, was also motivated by his personal experience when he was charged double fare for one-way travel from Bhopal to Delhi.

Launched earlier this year, AHA Taxis has expanded to more than 100 cities in India including Moradabad, Bareilly and Bijnor in Uttar Pradesh along with Delhi, Jaipur, Agra, Chandigarh, and Dehradun.

With customers comfortable with paying one-way taxi fare, such taxis often get return booking even before they touch their destination.“The total fare for family or group intercity travellers is similar to hiring a one-way taxi,“ said Parikh.

NV Subbarao, a member of Hyderabad Angel and one of the angel investor in AHA Taxis said, “At present it is a wide, open market. One-way travel fare for sure is a big disruption in the intercity travel market.“

Road travel in India is five times bigger than railways and business is divided among bus and taxi service providers. The intercity taxi market in India is estimated to be over $9 billion (about Rs 60,000 crore), with an annual growth of 15-18%. More than 90% of this market is unorganised.

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