New Delhi: SoCoMo Technologies Pvt. Ltd, which runs online autorickshaw aggregator Jugnoo, launched cab services on Sunday, entering a segment dominated by companies such as Ola (ANI Technologies Pvt. Ltd) and Uber Technologies Inc.
The service, Jugnoo Cabs, is currently available in Gurgaon, and will be expanded to other cities, the company said.
Jugnoo’s entry into the online taxi-hailing space was anticipated after it acquired cab booking platform BookMyCab in July 2015. Before its takeover, BookMyCab operated a fleet of 2,000 cabs in Delhi, Mumbai and Kolkata.
Jugnoo, which also delivers food and grocery through its auto-rickshaw partners, expects cab drivers to move to its platform following the withdrawal of driver incentives by both Ola and Uber. (bit.ly/2l1cBoH)
“We analysed the issues faced by taxi drivers of late and have come up with a strategy to provide taxi services at prices where drivers do not work at artificially lower rates than their costs,” co-founder and chief operating officer Chinmay Agarwal said in a statement.
The Chandigarh-based start-up said fares on its platform will be higher than those offered by Ola and Uber. Currently, it runs call-an-auto service Jugnoo Auto; delivers meals, groceries and toiletries under Jugnoo Menus, Jugnoo Fresh and Jugnoo Grocery; and runs a business-to-business parcel delivery service, Jugnoo Delivery.
In July last year, it acquired online fruits and vegetables store SabKuchFresh for an undisclosed amount and re-christened its grocery service Fatafat. The company claims to cover 40 cities with its service and to have about 12,000 auto-rickshaws on its platform.
In April last year, financial services firm Paytm (One97 Communications Pvt. Ltd) invested $5 million in the company as part of a $10 million series B round.
Jugnoo was founded in 2014 by Indian Institute of Technology-Delhi alumni Agarwal and Samar Singla. In 2015, the company raised $8 million in two rounds from Paytm, Pune-based Snow Leopard Technology Ventures and Freecharge’s Kunal Shah, among others.
Other investors in Jugnoo include Rakesh Mathur, chief executive officer of Flywheel and co-founder of Junglee (acquired by Amazon.in), actor Saumya Tandon, angel investor Vikas Taneja and Just Weil, an investor in Facebook.