Why cab charges vary?

Many people get confused while traveling by cab service. Even for same distance, why cab charges varies in different cities? And this question makes everyone confusing. Don’t worry! after reading this post, your view of watching cab services will get change. In this post, you will find different factors that affect charges.

1. Fuel Prices: In cab services, most of the people prefer diesel car for providing service. Increase in fuel price directly affects the charges. Long distance journey charges get affected by hundreds to thousands. For short distances it affects less as compared to long distance. In our country fuel prices are different in each state, even in cities.
2. Maintenance Cost: As vehicles are machines they also need maintenance, actually more. This maintenance is completely depends on how much vehicle covered distance, conditions of road and environmental conditions. This cost indirectly gets added into the charges, you can say it as hidden cost.
3. Taxes and charges: In each commercial field tax is the factor which affects price directly. For cab service many taxes get added like road tax, tourist tax, parking and toll. This taxes or charges get added into the packages. In some hill stations, local village development charges are also getting added into the packages. Many cab services purchase cars by loan, this adds too much burden on the driver or owner to pay monthly installments.
4. Customer frequency: This factor depends on the type of place. In case of hill station, business is season dependent. More customers less charges – In metropolitan cities customer frequency is too high, therefore the charges are less. In tourist places customer frequency is seasonal therefore service provider has to cover all the yearly target, if he/she will not cover this target, then it will tend to high debt, as yearly maintenance charges and taxes are unavoidable. Sometimes service provider adds returning charges also, in many rural places they never get customer for return journey but distance gets doubled therefore they adds returning charges.
5. Number of seats: Number of seats decides the cost per person. In pickup and drop business, cost per person is the main thing. If the cab has good number of seats, then the price gets lowered and vice versa. This formula is also applicable in long distance journey. If you will see an example of buses, number of seats are too high therefore the charges are too less, but for small cars charges are high for the same distance.
6. Car type: This factor directly affects budget. It is always customer choice to choose a car. High end cars charges more, low end cars charges low. Car prices start with few lakhs. No one even thinks about this factor. This is also a hidden cost that many people adds. When you buy something in business, you have to consider the complete recovery time. If you will see this factor, recovery this time is in few years.

These are some most important factors which decides the charges in each cab services. Every human deserves respect and drivers are also human.