Arvind Kejriwal’s odd-even rule to benefit bus aggregation startups like ZipGo and Shuttl
New Delhi, India | Red Newswire | Dec 8, 2015 Last Updated at 12:20 PM IST.
Delhi CM Arvind Kejriwal has taken a move that has caused hackles for deli residents – allowing even and odd registration numbers on alternate days starting this New Year. But, on the other side it has created a good opportunity for some startups.
Bus aggregation startups like Ola bus services, ZipGo and Shuttl could see rise in number of customers if this rule is implemented.
Shuttl came into existence earlier this year and is one of the largest players in the region with a network of 500 vehicles. ZipGo also entered the Delhi market and launched women only buses.
According to Amit Singh, the founder of Shuttl, the public transport system of the city is bursting with 5 million people using buses and 3 million using metro everyday.
There are 3 million people who own private vehicles and half of them will be off the road if this rule is implemented. These people would need an alternate option to travel.
Singh said, “"We will start routes where we see there is more pain, and should benefit from it. But implementation will take time.” Shuttl is backed by Sequoia Capital and registers around 15,000 rides every day.
Other startups in the field like Mumbai-based rBus are planning to launch in Delhi. Kejriwal said that the rule will be implemented as an experiment for first two weeks of January. This decision came after it was in the Delhi High Court that the city is more like a gas chamber.
Vijay Shekhar Sharma, Founder of Paytm said, “"No doubt, it could turn out to be a huge opportunity. Delhi state authorities cannot increase public transport capacity in such a short span of time, and this could turn out to be a boon for companies engaged in the passenger transportation sector.”
Taxi hailing service proviers like Ola and Uber have already started carpooling services in Bengaluru and are waiting to measure the impact.
An Uber spokesperson said, “"Delhi being one of our major cities and headquarter, we will be looking to bring UberPool there very soon.”
Source: ET Bureau