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Top Cars for Ride-Hailing Services
  Jun 11, 2024     AASMA MAJiD  

Top Cars for Ride-Hailing Services

Over the past few years, online ride-hailing services have grown significantly, overtaking traditional taxis and local rickshaw stands. If you frequently use these services, especially the Mini, Mini GO, and Comfort rides, you will notice a few car models appear more often than others. This article explores the most popular car models for ride-hailing services and explains why they are favored by drivers.

Suzuki WagonR

The Suzuki WagonR is a staple in the ride-hailing industry. It's a preferred choice for many drivers for several reasons.

Firstly, the WagonR is spacious, accommodating up to five passengers and two large bags comfortably. Secondly, its slim tires and efficient Suzuki R series engine contribute to excellent fuel economy, achieving around 13-15 km/l in city conditions with air conditioning. Additionally, the air conditioning performance is robust, maintenance is straightforward, and spare parts are affordable.

Another reason for its popularity is its availability in the used car market. With a budget of 18-28 lakhs PKR, it fits the financial constraints of many aspiring ride-hailing drivers.

Suzuki Alto

The Suzuki Alto is another top choice for ride-hailing services, known for its impressive fuel economy and ease of maintenance. Introduced in 2019, the Alto quickly became a favorite among drivers, with nearly half of its buyers using it for ride-hailing. It offers a fuel economy of 14-18 km/l, which translates to higher profit margins. Moreover, it is the most affordable brand-new reliable car available, making it a practical choice for drivers. Despite its less-than-ideal build quality, the Alto's reliability, easy maintenance, and fuel efficiency make it a popular option for online taxi services.

Suzuki Mehran

Often referred to as the "Boss," the Suzuki Mehran is a versatile vehicle suitable for various purposes, including commercial use, family transportation, and even off-road adventures. In the context of ride-hailing, it is commonly used in the Mini category.

The primary drawback of the Mehran is its ineffective air conditioning. As a result, it is mainly used for short trips where AC is not crucial. However, its maintenance costs are incredibly low, comparable to that of a motorcycle. For those on a tight budget, the Mehran is an attractive option, with prices ranging from 9-12 lakhs PKR, making it the go-to choice for drivers who cannot afford higher-priced models like the Alto and WagonR.

Suzuki Cultus (1st Generation)

The Suzuki Cultus, while less common in ride-hailing services, is still used by some drivers. It features a 1,000cc engine and offers a fuel economy of 11-13 km/l, which is less efficient compared to the Mehran and WagonR.

 

One downside of the Cultus is its higher maintenance costs and expensive spare parts. Despite these drawbacks, if you already own a Cultus and plan to use it for ride-hailing, it can still be a viable option, especially if the air conditioning is in good working condition. This allows drivers to offer Comfort, Mini GO, and GO services, which can be profitable despite the car's lower fuel efficiency.

Honda City (Old Models)

Older models of the Honda City are frequently used for higher-end ride-hailing services such as AC Ride, Business, or Executive class rides. Although the fuel economy is lower and maintenance costs are higher compared to smaller cars like the Alto, the potential earnings are significantly higher.

Driving a Honda City in upper-tier ride-hailing categories can result in nearly double the income compared to driving a WagonR or Alto in the Mini and GO Mini classes. If you have a larger budget, the Honda City is a good investment for ride-hailing, offering better profits and also serving as a comfortable family car with ample space and effective air conditioning.

JDM 660cc Cars

A few years ago, Japanese Domestic Market (JDM) 660cc cars were popular among ride-hailing drivers. However, following the import bans in 2022 and the significant increase in the dollar rate, their popularity declined. Previously, these cars were affordable, costing around 12-15 lakhs PKR for a good condition model. Now, the same models are priced at 27-30 lakhs PKR and are often in poor condition.

Due to these economic changes, drivers have shifted towards locally assembled cars like the Suzuki Alto or used WagonR. Despite their excellent air conditioning, exceptional fuel economy, and comfortable ride quality, the high acquisition cost of JDM 660cc cars has made them less attractive to ride-hailing drivers.

Conclusion

In conclusion, the choice of car for ride-hailing services significantly impacts a driver's profitability and operational efficiency. Models like the Suzuki WagonR, Alto, and Mehran are popular due to their affordability, fuel efficiency, and low maintenance costs. While cars like the Suzuki Cultus and Honda City have their niche uses, they are less common due to higher operational costs. The shift away from JDM 660cc cars highlights the impact of economic factors on vehicle choices in the ride-hailing industry. Ultimately, drivers opt for cars that offer the best balance of cost, reliability, and profitability, ensuring a sustainable business model in a competitive market.

 

AASMA MAJiD