Auto Driver Socio Economic Study_Presentation_Final

7/31/2019 Auto Driver Socio Economic Study_Presentation_Final

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A study on Auto Rickshaw Drivers

in Chennai

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Key Issues

Overcharge of auto fare

Rude behavior with passengers

Reckless traffic behavior

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Whom are we talking about?

Capital investment ofRs.700 Crores

Employing 1,00,000 drivers.

Supporting 5 Lakh family members .

Catering to 72 Lakh population.

Generating a revenue of Rs.2,000 Croresper year.

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Auto Drivers are More of Victims

than the Accused.

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Compelling Reasons

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Permit cost is high-inflated by govts

ban on permit

The nexus between the credit mafia and the

transport department has helped them to

obtain permits on bogus names.

The ban blocked the entry of poor into the

sector.

The credit mafia resold the permits during the

ban at a sky rocketing price (Rs.70,000

1Lakhs)

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Limited Income Opportunity & High

Aspiration

Aspiration of Auto Drivers

They belong to the aspiring and

upwardly mobile lower middle

class looking for social

recognition & better livingstandards .

They want to wriggle out of their

image which has shrunk with the

size of their vehicle.

Not considered as entrepreneurs

Buying an

auto

rickshaw

Childrens

education

Better

standard of

living

Medical

expenses

Dowry

expenses of

family

47%

38%

41%

6%

1%

Aspiration of Auto Drivers

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Demographic Dividend

Age group of Auto Drivers

1.96%

12.57%

24.17%

41.65%

17.49%

2.16%

Majority of them are young

who give their prime age to

the profession i.e they wantmaximum return.

Have equal right as their

counterpart in other

profession (IT).

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Majority of the Chennai auto drivers are

school dropouts

Educational Qualification

26.52% 27.50%

32.42%

8.84%

2.95%1.77%

< 8th std 8th pass 10th Pass 12th Pass graduation Others

Education qualification

Profession which has a large

number of less educated

mass directly interacting

with mostly middle classcustomers.

No formal training; no body

cares about it.

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Less or no social security

Insurance Details

Only a fraction of the auto

drivers have any kind of

insurance. Since most of them support

a family and are married,

this remains an important

area of concern.11%3% 2%

14%

70%

Self Family Self& Family Auto No

insurance/No

information

Insurance Details

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Govts Failure to Revise Auto Fare on Time

In 1996, the fare stood at Rs.7 meter down

and Rs. 3.5 per km. thereafter.

In 2007, the fare was finally revised upward to

Rs. 14 meter down and Rs.6 pr km thereafter.

Since 2007 the fuel costs have increased:

Diesel by 16.44%, Petrol by 12.58% and LPG

by 25.79% as on 26.06.2010.

Thus, indexation of the drivers income

remains a persistent problem.11


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Job Hazards

Back pains

Aural disorders caused by noise pollution

These health hazards force them to give up

their profession at a relatively earlier age.

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Barriers in access to credit

Although banks charge

interest in the range of

11.25% to 13.5%, they ask

for a lot of documentswhich the drivers do not

possess.

Thus, drivers have to

approach the moneylendersfor loans at an interest rate

of 24%; this imposes double

monetary burden on them.

29%

71%

0%

Auto Ownership

Owned Rented No information

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High Dependency Ratio

83% of the drivers are

married and a majority of

the drivers support a familyof 5 persons.

At younger age, taking

responsibility of a typical

Indian family ,that too in a

demanding metro city,

where the cost of living is

scaling upward.

0.4% 0.2%

6%

28%

61%

4%

1 2 3 4 5 6

Members

Family Members

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Inadequate Training in Driving

They are the back bone of

public transport system of

Chennai but no body isthinking about their training

rather they

37%39%

22%

2%

Selftrained Trained by

friends/family

member

Driving School No Information

Means of Learning Driving

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Not recognized for their role in

Transport System

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If Autos drivers are overcharging

and rude, then.

Why is it still in demand?

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Uniqueness of Auto Rickshaw

Autos are generally preferred for short

distance trip. There are less alternatives in this

segment.

Provides employment opportunity for

thousands of uneducated and migrant youth.

Middle class transport system

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Uniqueness of Auto Rickshaw

Provide door to door and last mile travel. No

competitors in this segment since Taxis & Call

taxis are costlier.

Provide the most comfortable journey in short

distance trip. Again no competitors in this

segment

Take less space on the road i.e 0.75 PCE which

is equivalent to a motor cycle.

Lucrative source of Livelihood20


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A middle Class mode of Transport

system

76% 72%

95%

50%

25%

24% 27%

5%

50%

74%

1% 1%1%

1% 1%

Lower class Lower Middle

Class

Middle Class Higher Middle

Class

Higher class

Class of Passengers Uses Auto

Yes No No information

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Way Out

Make access to formal credit easy

Take out govt.s interference from fixing price.Let the service provider decide his/her own

price. Formulate social security with partnership

with private insurers.

Allow more players in this sector.

Training from recognized training schoolsbefore being given badge.

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Auto Driver Socio Economic Study_Presentation_Final

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