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 would be the best way that the mayor can ensure comfortable, hassle free transportation by app based taxis.

• A. All drivers to be vetted by the local police and to wear identity badges. Their names and addresses are also to be displayed prominently.
• B. Drivers with impeccable safety records of more than two years can charge up to 25% extra from passengers.
• C. Frequent and random inspections to be made on drivers by police, especially during nights.
• D. Drivers with impeccable safety records can avail of a second bank loan at lower interest rates.
• E. Drivers guilty of any form of wrongdoing to be immediately removed from employment and police cases be lodged against them by the app-based taxi companies.

Answer 1

The Correct Option is D

Option A will ensure that the driver is caught for his misdeeds but may not still prevent them from committing crimes. It offers no incentives for drivers to maintain an impeccable safety record. Option B may not work as a 25% markup is a very high price increase for passengers to bear for the assurance of safety. Option C will achieve nothing in terms of safety for passengers. Option E gives a disincentive for committing a misdemeanour but option D is a much better option as it offers a clear incentive for drivers with impeccable safety records.

Hence, the correct answer is option D.