I have often wondered at the intricacies of the fare system for autorickshaws – those threewheeled skinny, canopied creatures of Asian descent that scurry around ubiquitously on city and town roads. Every auto, whether new or already plying on the road, must have a fare meter. Yet, no driver worth his salt would ply metered rides. The stupidity, indeed the futility, of the entire exercise – from the factory that manufactures these meters to strict specifications, those mechanics who painstakingly install and calibrate it, to the inspectors who verify installation and correct operation of the meter – is mind numbing. Why this rigmarole when it turns in to a piece of junk the moment the FC or license is granted and the vehicle leaves the inspector's precincts?
As an economist without deep pockets, I have often been caught in the dilemma between wishing for a metered (low) fare regime on one hand (especially when touring other cities/towns) and the negotiated fare that my professional self considers optimum given transportation dynamics. "What dynamics?" you may ask. Let me explain. At any point in time and space, a lay person wishing to visit a certain place has the option to ride public transport, beckon a taxi or seek out an auto (not to mention, walk or ride a cycle). His choice is determined by accessibility, availability, fare, comfort during travel and time taken by that mode of travel relative to his schedule. Suppose the person chooses to travel in an autorickshaw. If it happens to be the morning or evening 'rush hour' on busy roads, then autorickshaws are in great demand by the teeming commuters. Demand soars, supply is constrained and fares must rise; in other words no haggling over fares – time is money. On the other hand, during lean midday hours, the number of autos outstrips demand and drivers are not averse to testing their bargaining (I suspect, oratorical) skills against their customer. In fact, and this is less appreciated, the auto drivers price discriminate considering factors as diverse as location and availability of substitutes, time of day, customer's income and purpose of travel, urgency, status (resident vs tourist/visitor), probability of securing a 'followon' customer at the dropoff point, vehicle and road condition and so on. Why, they even withdraw from the roads to restore balance at times of low demand! And we consider them illiterates!
Enough meandering, let's get back to the point. Clearly, the supplydemand situation changes dramatically across space, time and customer. These fare swings are entirely natural. It is our rules that make demands for higher fares seem illegal (and we, law abiding citizens have always found fault with 'em rowdy drivers!). If anything, the reality is the opposite (and quite sobering). It is immoral and unethical to force uniform, regulated fares regardless of time, location, vehicle, weather or road
Ganga Prasad G. Rao gprasadrao@hotmail.com http://myprofile.cos.com/gangar 1 of 2
condition and that too on poor drivers who brave pollution and congestion to ply their trade. If they cannot pricediscriminate, who can? On a more sombre note, regulated fares do not factor in congestion, pollution, accident risk, road condition, hike in petrol prices and the many other factors that drivers consider when they demand a fare. Besides, regulated fares cause a reduction in supply of autorickshaws during rush hours and at other times of need, not to mention result in inadequate maintenance of vehicles and sour behavior with customers. On the other hand, negotiated fares are efficient and provide the right signal to vehicle owners, operators and users regarding investment, maintenance, safety and patronage.
So archaic is the system that even the police do not enforce it. Then, why the farce of meters and regulated fares. Because no one dare question the Government? or the Police? Because there is no alternative? But, there is! We can do better. A lot better. Why not 'marry' the meter to a 'negotiated fare'? Pray how? Well, presume the unit rate per kilometer is negotiated between the operator and the passenger before embarking on the journey. The auto driver punches this in to the (suitably modified) meter which displays distance traveled, unit rate punched in postnegotiation but pretravel, and the total fare computed by combining distance traveled with the unit rate. The fare is metered; it reflects the distance and the negotiated price for that journey. What more could one ask for? This is a winwin compromise that satisfies meter manufacturers, auto drivers and the public. Indeed, there is nothing that stops this system from being extended to taxis.
Perhaps sanity will yet prevail over Gandhian ideals? (Even economists are allowed to dream, you know!)
Wow!, Perhaps I've earned my cuppa tea! achcha to hum chalte hein.......
Ganga Prasad G. Rao gprasadrao@hotmail.com http://myprofile.cos.com/gangar 2 of 2
