“For five-six stations of only one division, we have managed to get Rs 51 crore for three years (Rs 17 crore a year). We’ll be doing the same in Delhi, Mumbai, Kolkata, Hyderabad, Chennai and other bigger cities,” said a senior railways ministry official, speaking on condition of anonymity.
Ola and Uber are expected to help drive non-fare revenue for the Indian Railways, which is eyeing minimum revenue of Rs 500 crore a year through leasing parking lots at stations and the adjoining vacant land to the cab aggregators.
The parking lots will become the taxi hubs for Ola and Uber to serve the high frequency catchment area of railway stations and adjoining areas. The railways will also allow these companies to set up kiosks to pick up passengers at the entry point.
In response to ET’s queries, an Ola spokesperson said that lakhs of people travel with Indian Railways on a daily basis and this tie-up will ensure seamless last-mile connectivity for commuters using smart and sustainable transportation solutions.
“This partnership is a great merger point for a traditional and impactful transportation solution like railways and a modern and technology backed smart transportation provider like Ola,” the spokesperson said.
“We can easily make about Rs 500 crore a year through leasing the existing parking lots and also vacant land around the stations to these companies,” the official said. “We are already in advanced talks with Uber and Ola for other major cities. The allocation will be done through a tender.”
The official said that these parking lots cut down parking hassles for driver partners who were earlier forced to park on roads in violation of the traffic norms.
The railways has been actively looking to explore innovative revenue generation options which can reduce its reliance on the conventional fare revenue mechanism.