Rumour: Reliance to buy all black & yellow taxis of Mumbai

After selling shoes, clothes, vegetables etc... now Reliance wants to get into the taxi business.

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Reliance is reportedly planning to buy all black & yellow taxis of Mumbai to mark its entry into the cab business. The company is currently said to be in talks with the taxi union. If the deal does go through, Reliance will likely be operating the taxis as part of a connected radio cab service.

The Indian conglomerate is rumoured to have offered a buying price of Rs. 5 lakh for each taxi. This will include the license rights as well. However, the taxi union is pressing to increase this price to Rs. 7 lakh. As part of the proposal made by Reliance, each driver will be paid Rs. 20,000 for a day's shift and will be entitled to a month of paid leave, which the union wants to be increased to 2 months. These are the few points where negotiations are said to be stuck at the moment.

Reliance has been eyeing the cab marketplace for a fairly long time. It was earlier reported that the company will be entering the business as a rival to Ola & Uber, throughout the country. Reports even suggested that Reliance was poaching drivers from other cab aggregators by offering lucrative proposals. It was also reported that the company was planning to use a CNG-only fleet to minimize operational costs. However, Reliance officials have been tight-lipped about this new venture.

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Source: http://www.team-bhp.com/news/rumour-reliance-buy-all-black-yellow-taxis-mumbai