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Baxi to expand operations, eyes UP market

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New Delhi, Mar 6: Gurgaon-based Baxi will start services in Noida and Ghaziabad in the next few weeks as it expands operations and tap into the booming on-demand motorbike taxi segment.

The company, which offers about 3,000 rides a day, is operational in Gurgaon and Faridabad in Haryana.

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"Before commencing operations in Gurgaon, we met the authorities and after certain changes were brought in, making motorbike taxis legitimate, we started operations there. Similarly, we have had discussions with the authorities for offering services in Noida," Baxi co-founder Ashutosh Johri told PTI.

He added the company expects to start services in Noida later this month, followed by Ghaziabad. "There were no rules for two-wheelers under the Motor Vehicles Act, and therefore, we had to get it modified to ensure that there are no regulatory fallouts," Johri said.

Like Ola and Uber, Baxi allows users to get rides but on motorbikes. It offers rides at base fare of Rs 10, followed by Rs 4 per km and Rs 1 per minute of ride time charges.

"We are already doing about 3,000 rides daily in Gurgaon and Faridabad. Noida alone should be about 3,500 rides a day but getting to that scale may take a bit of time as it takes some time for riders and consumers to get used to the concept," he said.

The company had received about USD 1.5 million funding last year from investors including HT Media, Manish Kheterpal (WaterBridge Ventures), Alok Mittal (Indifi Technologies) and Puneet Dalmia (Managing Director of Dalmia Bharat Group). "About 250 bikes are operating in Gurgaon and Faridabad under Baxi. We expect to have about 150 bikes when we have Noida operations," he said.

Johri added the company aims to create self-employment opportunity for about a lakh people in the state. Asked about Ola and Uber entering motorbike taxi space in India, Johri said it is a validation of their model.

"Motorbike taxis is an established model in markets like Vietnam, sub-Saharan Africa, Indonesia, Thailand, the emerging nations. Entry of players like Ola and Uber in this space shows that this category has immense scope of growth," he said.

Last week, taxi aggregators Uber and Ola launched their bike taxis in Bengaluru on pilot basis. However, the Regional Transport Authority has termed this service illegal and has asked public not to use it.

The transportation space is witnessing intense competition as the private equity-backed firms are offering discounted rides and investing heavily in getting more drivers on board.

While Ola and Uber face competition against players like Meru, entry into the bike taxi segment pitches them against new start-ups like Baxi, N.O.W and Rideji.

PTI

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