Nisadas

I came across an article on the Freakonomics blog today about the difference between autorickshaw (3-Wheeler in Sri Lankan parlance) drivers in Delhi and Mumbai.

According to law, autorickshaw drivers must only go by the meter reading that is reported after a commuter’s trip is finished. However in Delhi, there are hardly any autorickshaw drivers who go by this law, and instead they quote nefariously high prices. In Mumbai though, no matter what the time of the day or night, the drivers go by the meter.

The reason for this difference put forward by the writer Abhishek Rawat (himself a reader of the Freakonomics blog) is simply competition – there are more 3-wheelers in Mumbai than Delhi and there are less alternatives in Delhi. As a result, the commuters in Delhi are more likely to pay whatever the three wheeler driver asks for and get to wherever he or she is headed.

Stephen J. Dubner put forward the following first three reasons, whereas the other reasons were also submitted in the comments;

• Differences in law enforcement in Delhi and Mumbai
• Whether or not drivers belong to a fleet or operate independently
• The possibility of differences in professional culture (Abhishek discounted the notion of cultural differences).
• The government-set rates are not sufficient for the drivers in Delhi to make a profit
• Differences in the commuters’ economic status in the two cities – Delhi having wider gaps between the rich and poor while Mumbai has a middle class more interested in value for money.

This reminded me of the All Island Three Wheeler Drivers Welfare Association (Meter taxis, contactable on 0712-500800) which has gained a lot of Word of Mouth popularity these days. Here in Sri Lanka there are plenty of three wheelers around. The profession isn’t viewed very favourably, which led to the formation of the Association, as can be seen in Duruthu Edirimuni Chandrasekera’s article about the Meter Taxis from the Sunday Times.

Calling the hotline mentioned on the website revealed that the rates are now Rs. 50/- for the first kilometer and Rs. 30/- for each thereon. Given the current situ, I’m wondering if they qualify for the reduced rate of petrol for three wheelers announced for the 2009 budget. They certainly meet the requirement of having a meter.

So what are the chances of mass adoption of meters by the Sri Lankan three wheeler drivers? Pretty slim, I think. My reasons?

1. Regulation and the lack of it. Apart from registration (due mostly to the negative reputation of the profession) with the local police, there doesn’t seem to be any other type of regulation. Without any formal rules, I’m not convinced that many of the three wheeler drivers will adopt using the meters.
2. Peer pressure – not everyone wants to give up the opportunity of fleecing prospective customers, especially foreigners. With most three wheelers operating from “stands” where groups of 3 or more operate, the guy with the meter is likely to be ostracized. This will result in resistance to using a meter. For example, anyone picking a 3 wheeler from near Odel or Majestic City will be surprised at the rates charged by other three wheelers.
3. Lack of information. In the article mentioned above, the profit per day from running with a meter is given as Rs. 1,500/-, while there is also mentioned a greater demand than the Association can meet. However, I don’t think many three wheeler drivers are aware of this.
4. Lack of customer pressure. People who use three wheelers often would have honed their tactics (or Tuktics) for getting the best rates. Some people will travel with only a selected few, whom they contact on their mobile numbers and are guaranteed reasonable rates. This leaves the occasional traveller to deal with and that probably doesn’t warrant the trouble of having to fix a meter.

However, given the popularity of the three wheeler as a means of transport and the difficulty in parking in Colombo during the day (and sometimes night) there’s a likelihood the situation will change in favour of the meter. That should benefit the traveller by means of more economic transport, while also providing the owner/driver with more business. More business because the hassle of bargaining is taken out and transparency in the pricing is created.