Cabs bear the brunt of recession

Cabs bear the brunt of recession

By: Lavanya Srinivasan Date: 2009-02-17
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Bangalore:



Software and BPO companies in Bangalore are increasingly using buses instead of cabs as a means of cutting costs in hard times of recession.

Cabs are losing and private buses are gaining from this strategy. Sources say there has been a 20 per cent cut in cab usage.

"Even Infosys is using a Pushpak bus as part of cost-cutting. Also, since buses can accommodate a lot more people it is much more efficient as well," says Hr professional Sarah.

Almost all the It companies have planned to use buses and in the process cab drivers will become jobless.

"Cab drivers have been hit hard," says Nanjundappa, president of Cab Drivers Association. "They can't just do this to us. We have been plying for them day and night for so long. I understand there is recession, but this seems to be their way of cost-cutting."

The one positive fallout of this strategy is that Electronic City can breathe easily now, as there are no more cabs in the area.