Free Magazine Boosts Income for Rickshaw Drivers

By David South, Development Challenges, South-South Solutions

SOUTH-SOUTH CASE STUDY

In the bustling, congested cities of Asia, rickshaws and auto-rickshaws are common forms of transport. Smaller, cheaper and more nimble than cars, they play a key role in the transit infrastructure, helping to get people to work and to get around.

According to a report by the World Resources Institute (wri.org) and EMBARQ – a global network of experts on sustainable transport solutions – India’s auto rickshaws are “an increasingly important part of urban transport in cities.”

The report estimates the number of auto rickshaws at between 15,000 and 30,000 in medium-sized cities and over 50,000 in large cities. The report found they make up between 10 and 20 per cent of daily motorized road transport trips for people in Bangalore, Mumbai, Pune and Rajkot.

And it’s not just the economic role played in transporting people: auto rickshaws are made in India and their production there doubled between 2003 and 2010, making them a source of manufacturing jobs too.

As India’s cities continue to grow – estimates forecast urban populations surging from 340 million in 2008 to 590 million by 2030 – auto rickshaws could have a bright future as they remain an affordable and safe transport solution.

The monthly magazine Meter Down (http://meterdown.co.in/) – launched in 2010 – is targeting the large captive audience of Mumbai’s rickshaw passengers with news and advertising. It is modelled on the familiar free newspapers found in cities around the world. Usually, these newspapers are distributed at subway and metro stations or in metal boxes at bus stops. Meter Down takes a different twist on this concept, distributing the publication directly to rickshaw passengers.

Mumbai is a crowded and very busy Indian city with an estimated 14 million people. Many residents spend a lot of time commuting – and a lot of time stuck in traffic jams. They need something to occupy them and to keep them informed about the news. This also presents a significant opportunity for businesses to communicate messages and advertising products and services.

Founded by three university graduates, Meter Down is trying to reach young professionals with a bit of money who can afford to ride to work in auto rickshaws.

It is distributed through 7,000 auto rickshaws in Mumbai, according to The Guardian newspaper, and is also being distributed in Pune and Ahmedabad.

The clever bit is the incentive for the drivers to carry the magazine: they receive 35 to 40 per cent of the profit from advertising sales.

This is added to the 400 to 500 rupees they make in a normal shift, according to the Mumbai Autorickshawmen’s Union.

But isn’t it a challenge to read a printed publication while bouncing along the road? The publishers came up with a solution: no story is to be longer than 300 words and the magazine has many large-size photographs to make it visually appealing and easy on the eye. Then there is the issue of passengers leaving with a copy of the magazine, denying the next passenger their read. The solution they came up for this is to tie the magazine to the rickshaw.

One of the biggest problems for any new start-up publication is how to scale up and reach more readers. Meter Down cleverly has the mechanism to scale built into its business model: “The market for this is as big as the total number of auto-rickshaws in each city,” Dedhia told The Guardian. “We have successfully scaled the model and tweak it as per different specific needs. Since auto-rickshaws are present in every part of the country, we can expand the network everywhere.”

Meter Down’s founders estimate that each rickshaw makes 90 to 95 trips every day. They have calculated this leads to a potential readership of 600,000 people. To increase revenue sources, the magazine also sells advertising space on the back and inside of the rickshaws.

For people in wealthier countries, rickshaws may seem like a rough way to get to work, but they are actually, for Indians, the more expensive option. A three-mile ride in Mumbai costs 68 rupees (US $1.27), according to The Guardian, which is 10 times the cost of a second-class train ticket.

For Meter Down, this means targeting the magazine and the ads at a market of readers with money and a willingness to buy products and services. It looks like things could be on the up for Meter Down!

Resources

1) Sustainable Urban Transport in India: Role of the Auto-Rickshaw Sector.
Website: http://www.embarq.org/en/sustainable-urban-transport-india-role-auto-rickshaw-sector 

2) A fleet of auto rickshaws for sale from Bajaj. Website: http://www.bajajauto.com/commercial_vehicle.asp

 

Creative Commons License

This work is licensed under a
Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License.

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s