Supporting a ‘Sharing Economy’
PickMe, Sri Lanka’s first mobile taxi hailing Company says that an efficient cab service can prove to be a great asset in terms of cost as well as time management for users. Gone are the days when the option of owning a vehicle could be considered as a value asset. In a scenario where vehicle prices keep skyrocketing and congestion on roads is getting to be out of control; it would appear far more advantageous to some to replace ownership with a reliable taxi service.
CEO of PickMe, Zulfer Jiffry says that’s what their service offers customers – a way of rethinking their investment in transportation, without the added cost of large interest payments to leasing/borrowing institutions or the hassle of driving around on congested roads, trying to find almost non existent parking spaces during rush hours. He says that according to their calculations, the minimum investment in any kind of vehicle as opposed to using their taxi service is extremely high. “The numbers add up, because the cost of owning a vehicle is that much more than that of using a taxi service. For example, the total cost of leasing, driving & maintaining a mini car such as a wagon-R would calculate to approximately Rs. 40,000/- per month for a mileage of 240kms.”
Zulfer believes that most of these costs could be avoided and traveling made much simpler both in terms of expenditure and time, by hailing a cab for daily commutes to work or for other daily chores such as school drops and pick-ups. He explains “If one were to use a mini car from our service for 24 working days covering a distance of 10km per day, it would cost approximately Rs. 12,000/-. Even customers who might choose the option of travelling in luxury and hail a car every day would only have to pay a sum of approximately Rs. 17,000/- per month for 240kms. In both cases the monthly leasing of an equivalent vehicle itself would cost 2-3 times more than what they would spend on taxis; and add to that the fuel and maintenance costs they would have to incur. Therefore, the assumption that taking a taxi for your daily travels is a luxury ordinary middle class people cannot afford is in fact not entirely true.”
During a press conference held at HNB recently, PickMe’s Chairman Mr. Ajit Gunewardene said; “I believe that one PickMe vehicle on the road allows to remove four other vehicles from it. The efficiency levels will go up to such a point that it will have a significant impact on traffic, pollution and on fuel consumption.” He also said there are cheaper, more efficient options such as PickMe, than investing in a depreciating asset such as a vehicle.
Zulfer added that the world is now moving away from vehicle ownership especially as a mode of daily traveling. “Look at Singapore, they have remedied their traffic problem, lack of parking and severe pollution through online taxi hailing apps and ride sharing. These apps allow them to connect with people around the country and share a ride with whomever they choose. Use of these services has not only become cost effective for the consumer but has helped to considerably reduce the number of cars travelling on their roads and as a result, also improved their environment” he said.
The global trend in investment that supports a similar vision is called a ‘sharing economy’ where people consider sharing homes and vehicles as a better option than owning one. Even businessmen and women around the world have taken to re-directing their investment in assets that pay back instead of in assets that only serve one purpose while depreciating in value otherwise. The CEO says that there are local companies who now provide employees holding higher positions with taxi services like PickMe to drive them around as they have begun to see the advantages of time management and keeping their Executives hassle free.