Question:
Direction: Read the following scenario and answer the questions that follow:
Licensed taxi drivers in the metropolitan city of Tropur in North India are up in arms at the emergence of appbased taxis. App based taxis are easy to obtain quickly, come in various capacities, are more comfortable to ride in than are licensed taxis. Moreover, payment can be made by debit/credit cards or online or even by cash wallets. Within a short time, these app based taxis have taken 30% of the total taxi market. The local taxi association implores the mayor of the city to do something to protect the business of licensed taxis.
What should the mayor do to help licensed taxi owners and yet ensure that customers have a wide choice in transportation?
Direction: Read the following scenario and answer the questions that follow:
Licensed taxi drivers in the metropolitan city of Tropur in North India are up in arms at the emergence of appbased taxis. App based taxis are easy to obtain quickly, come in various capacities, are more comfortable to ride in than are licensed taxis. Moreover, payment can be made by debit/credit cards or online or even by cash wallets. Within a short time, these app based taxis have taken 30% of the total taxi market. The local taxi association implores the mayor of the city to do something to protect the business of licensed taxis.
What should the mayor do to help licensed taxi owners and yet ensure that customers have a wide choice in transportation?
Licensed taxi drivers in the metropolitan city of Tropur in North India are up in arms at the emergence of appbased taxis. App based taxis are easy to obtain quickly, come in various capacities, are more comfortable to ride in than are licensed taxis. Moreover, payment can be made by debit/credit cards or online or even by cash wallets. Within a short time, these app based taxis have taken 30% of the total taxi market. The local taxi association implores the mayor of the city to do something to protect the business of licensed taxis.
What should the mayor do to help licensed taxi owners and yet ensure that customers have a wide choice in transportation?
Updated On: Jan 27, 2024
- Stress on the fact that licensed taxis are cheaper than app-based taxis and request the local taxi association to advertise this fact widely.
- Emphasise to the local taxi association that their licensed taxis should provide the same level of convenience in obtaining taxis, passenger comfort and convenience in payments.
- Restrict the number of app-based taxis and impose taxes on them.
- Restrict the number of buses so that more passengers are forced to travel by taxis.
- Allow an increase of fares of licensed taxis so that they earn more per ride.
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Verified By Collegedunia
The Correct Option is B
Solution and Explanation
Option A is already known to passengers and despite lower prices, licensed taxis are rapidly losing out to app-based taxis. Options C and D would be grossly unfair to app-based taxis and to passengers who travel by buses. Customers would not have a wide choice in transportation. The issue is not pricing alone, so option E would probably not work. Option B, comes up with the correct Solution– offer the same level of comfort and convenience as app based taxis and soon passengers should return to them.
Hence, the correct answer is option B.
The local city bus system is also close to collapse due to the presence of licensed and app-based taxis. It is incurring heavy losses daily. Bus conductors claim that passengers constantly complain about having to travel in great discomfort – mostly standing – and with no air conditioning in summer. Furthermore, there are no proper bus timings and passengers are clueless about how long they have to wait for their buses to arrive.
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