Wednesday, August 24, 2011

Franchising Qatar's taxi service -- another 'soon-to-fail' attempt from Mowasalat?

Mowasalat move may ease Doha cab crunch ....
According to a tender announced this week, “Mowasalat is extending its taxi operation rights to Qatar-owned companies according to its standards and logo”


By Peter Townson
The Gulf Times Staff Reporter



Many residents have expressed their hope that Mowasalat’s decision to license additional operators would lead to an improved service with less waiting time and easier access to cabs when needed.


Transport provider Mowasalat has invited local companies to bid for taxi operating rights in Qatar, noting that any potential bidders must have the capability to organise and run a fleet of 300 taxis in the first stage of operations.


According to a tender announced this week, “Mowasalat is extending its taxi operation rights to Qatar-owned companies according to its standards and logo”.


Applicants must be Qatar-owned and they must take part in the closed bidding auction procedure to win permission to operate under Mowasalat.




Gulf Times spoke to a number of residents who said that using Karwa taxis on a regular basis had led to frustration as it seemed that the number of cabs on the roads was not sufficient to deal with the huge demand throughout the country.


Filipino expat Reynald said he was pleased to hear that more taxis may soon be on the road. “I often use Karwa taxis and it is very difficult to hail a cab from the side of the road here – there do not seem to be enough for the growing population,” he said.


“I would be very happy to see more cars on the road – it will be easier to get around,” he added.
Another expatriate who said that she often used Karwa and tried to make telephone bookings for the service, hoped an addition to the number of cabs would mean a more flexible and efficient service for customers in Qatar.


“I usually ring and book my taxi, but I have to phone the day before because they are so busy,” she said, adding “if you try and change your booking at any time, they tell you that you need to wait for hours – or sometimes until the next day even!”


Mowasalat has a monopoly on taxi operations in Qatar, providing the only service for pickup taxi cabs as well as the lowest-cost telephone car booking service.


Prices have been increased since the company was launched, but the customer base is still primarily medium and low cost workers, who rely on Karwa to provide a transport service at a cheaper rate than the other car companies throughout the county.


It remains to be seen which type of companies will be applying for the tender but it is most likely to be established car rental businesses or other automobile companies which already have a presence in Qatar.


Gulf Times spoke to a number of employees working for limousine companies, who said that they did not think their organisatons would be bidding for the tenders, and that the increase in cab numbers would not affect their business.


“It is a different kind of business between us and Karwa,” said an employee , adding: “It is no problem for us at all – we only answer calls and do not pick up anyone from the street.”
He explained that in peak months he could receive up to 75 calls a day, and expressed his confidence that this would not be affected by any number of taxis being added to Karwa’s current fleet.


However, there is no denying that people paying for a premium service because of the flexibility it offers will examine the possibility of using Karwa taxis on a more regular basis if their service can become more efficient.

“If they have a large number of new taxis on the roads, then the backlog should be eased, and it will be possible to get a taxi in a shorter space of time,” said one customer who often uses limousine services to travel around Doha.


“If that is the case, then I will definitely use Karwa more often through telephone booking, and I hope it will be easier to get a taxi from the side of the road as well,” he added.

Companies are requested to collect tender documents, with a fee of QR5,000, from Mowasalat headquarters between August 21-25. The closing date for applications is August 29.

Yesterday, Mowasalat officials said they had no new information to add to the tender statement.

2 comments:

Anonymous said...

If I am correct, this is Mowasalat's 3rd attempt to franchise their taxi services. I guess there will be no taker again after reviewing their terms and conditions of franchising. The whole idea of franchising is wrong. The Qatari government should deregulate the taxi industry instead of allowing Mowasalat to control and manipulate everything. The commuters are the ones to suffer and the government is going to take the pressure from tourists and local residents who need to move around by taxis.

Anonymous said...

I don't think Mowasalat will find any company interested in taking up the franchise offer which is their third attempt to do so. I don't think they have achieved world standards in the provision and operation of their taxi services.

What a shame to the state-owned transport company. A monopoly taxi business that is unable to win the hearts of many commuters!