Former Karnataka Chief Minister H D Kumaraswamy has forayed into the business of cab business by investing in a mobile-based cabhailing venture in Bengaluru.
According to a report by The Economic Times, the new cab operator has been named as HDK cabs and it will have a fixed fare through day and night. This has come after drivers associated with Ola, Uber had protested demanding better incentives and stopping attachment of new cabs which they said affected their bookings.
Speaking to the newspaper, Kumaraswamy informed that the app is not being developed for commercial reasons.
“Drivers were helpless when the state government showed no interest to resolve the issue. It was at this time they felt the need to start their own venture. Launching a new app similar to Ola and Uber was their project, which is now in final stages,” he said to ET.
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Kumaraswamy openly supported the protesting drivers throughout their agitation in February.
Many disgruntled drivers wanted to start their own mobile-based cab service with help of film-producerturned-JD(S) politician.
Slamming current aggregators Ola, Uber for over charging passengers, Tanveer Pasha, the man who led the cab drivers' protests in February, said, "Both Ola and Uber cheat people in the name of surge pricing and other hidden charges. Although we have not fixed the fare yet, there is a plan to charge either `10 or `12 per km for mini cabs, and Rs 12-14 for prime cabs."
Kumaraswamy said he would make an initial investment of Rs 2-3 crore, which could go up to Rs 50 crore in the next two years.
