Preliminary framework for a business plan for commercial motor vehicles

Abstract

India is at the forefront of a major economic revolution and is poised to grow at over 8% GDP growth year-on-year. But this economic growth coupled with the strong population growth levels being witnessed in the country will bring about increased urbanization levels. The current state of urban transport infrastructure is woefully inadequate in terms of capacity of infrastructure as well as service and quality levels. The present state of urban infrastructure is presently in shambles with the key issues plaguing the system being lacking punctuality, haphazard planning, congested and over-crowded and last but not the least, being alarmingly unsafe. The urban transportation infrastructure causes inefficiencies not only in public transport and communication but also causes social and environmental hazards like road accidents, noise pollution, congestion and environmental degradation. The present system of urban infrastructure does not even promote environmentally friendly modes of transport like cycling and walking since the motorways are already severely clogged with motor-vehicles that pedestrians and cyclists just end up creating more traffic snarls by encroaching on the vehicle's right of way. The situation is critical enough to demand an urgent increase in the capacity and quality of the public transport systems in place to meet the growing demand. Unfortunately, most cities in India (with the exception of Mumbai and its municipal corporation BMC) are cash devoid and do not have access to monetary funds to invest in the various modes of public transport, especially to the extent required. The inefficiencies of the public transport and the increasingly larger distances of travel are the two major factors which have a led to a major increase in the number of private vehicles operating on the roads and have led to more congestion seen in cities. We believe there is a strong case for an organized private vehicle operator that would provide commercial passenger services connecting important terminals like airports, railway stations etc to destination hubs in the city and hence reduce the burgeoning congestion being witnessed in the modern cities of India. Hence through this CCS we aim to provide a preliminary framework of a business plan that would cater to providing commercial passenger services and thus reduce the congestion from "few passenger" cars and taxis.