The Peninsula
Sunday, 21 August 2011
DOHA: Public transport company Mowasalat has launched a fresh bid to attract private companies to operate taxis in Qatar on a franchise basis.
The company said yesterday that the renewed bid was intended to expand the taxi service in the country and open the sector to competition.
Currently the taxi service is monopolised by the state-backed Mowasalat, which operates the 2000 plus Karwa taxis.
The company had announced a similar project some time ago and had even invited tenders from interested companies. The plan was shelved as it failed to find companies that are competent enough to run the cabs conforming to the Karwa standards and requirements.
“ Mowasalat is launching a franchise system aimed to expanding the taxi services in Qatar. The Company welcomes franchisees who have a strong desire to serve the public by means of world-class transport systems. Mowasalat is creating an opportunity for the private sector to be involved in this service-oriented industry,” the company said in a statement yesterday.
The company has already placed newspaper advertisements inviting interested companies to apply for the franchise system. The bidding documents, including the Karwa Franchise Program documents will be available for interested companies from today until August 25.
Jassim Saif Al-Sulaiti, Mowasalat’s Chairman and Managing Director said the company was ready to involve others “to break the monopoly and accept competition by granting the franchise to operate a certain number of Karwa taxis.”
“ Such business partnership will be mainly for the benefit of the public who will enjoy additional service options without any compromise of the world-class quality. In Mowasalat, we will also dedicate our resources and efforts to fulfill our vision of maintaining our position as the first option in the field of provision of integrated transport solutions in the region.”
Ahmed Bu Sherbak Al Mansouri, Mowasalat’s Executive Director said,
“ Karwa franchise program has matured overtime, and is now designed to fulfill that task of creating a fair market share of the taxi business in Qatar within certain parameters or standards set forth following the popular Karwa Taxi brand”
Breaking the taxi monopoly, a franchisee will join Mowasalat’s Karwa Taxis to provide more choices and more variety in a complete line of taxi services covering more and more parts of Qatar, he added.
According to Nasser Al Khenji, director of Business Development and Strategic Planning at Mowasalat, the internal and external look and feel of the taxi service would be maintained under the franchise system including the high level of customer handling.
“The tariff and the method of printing the receipt will all remain the same even if the kind of technological gadgets or brand in the taxi may appear different with different operators,” said Al Khenji.
The company asserted that that the franchise system would promote a healthy competition and lead to an increase in frequency, presence and availability of different kinds of taxi services.
The private company that wins the bid will enjoy the advantage of operating up to 500 taxis under a renewable five-year contract with Mowasalat.
Comments:
By: Alan Holden 2011-08-21
"Breaking the taxi monopoly, a franchisee will join Mowasalat’s Karwa Taxis" - So it's still Mowasalat owned, therefore still a monoply. We need a completely seperate competetive company.
"world-class transport systems" - Third world class maybe. The cars are generally falling apart through poor to no maintenance and many of the drivers lack basic manners needed when dealing with the public.
"operating up to 500 taxis" - So not really competition, just a way for mowasalat to increase the number of cars they have on the roads to a more reasonable level that has been needed for many years.
Sorry to say, but Mowasalt should really speak to the passengers and listen to their needs instead of coming up with hairbrained ideas like this, whilst the goverment should lift the monopoly and allow full competition.
2 comments:
What a waste of state government funds. Instead of improving the monopolised taxi services, the top management is wasting time and money -- trying to franchise the unsuccessful taxi business. The potential investors should try to call Karwa call centre to book a taxi to check it out before committing themselves in taking the franchsie.
Robert Craig's comment:
100% agree with Alan. The Qatari government should break the taxi monopoly by issuing more taxi permits to other companies instead of allowing Mowasalat to undertake franchising. Afterall, Mowasalat has yet to achieve "world-class transport systems" and so far no international organisation has ever granted Mowasalat that status yet.
If Mowasalat is still unable to to make commuters happy after few years of operations what makes them think that other franchised operators can be successful?
Only Qatar-based companies which are either inexperienced in taxi operation or unaware of Mowasalat's failed story may be interested to bid for the franchise. Experienced taxi operators will not be interested as they know that if Mowasalat is doing good business despite of a monopoly then why are they promoting franchising? Why can't they buck up their management skills and put the right people in the right jobs.
Karwa taxis are nice to look but bad to ride. Period.
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