A methodology for a pricing regime for three-wheeler taxi services

Bandara, YM; Kevitiyagala, PM; De Alwis, N

Abstract

The alarming growth of the informal transport sector in Sri Lanka during the past decade has given rise to the need to develop a regulatory framework to ensure the protection of both consumers’ and service providers’ rights, alongside those of the society at large. This study focuses on existing socio-economic features and the operational characteristics of three-wheeler taxi services, takes note of regulatory requirements, and devises a methodology for developing a fare index for three-wheeler transport services with the objective of developing a regulatory framework. At present, there are over one million three-wheelers in operation; a number which increases daily due to the attractiveness of income generated and the minimum prevalence of barriers to enter the industry. These findings are based on a survey conducted with the participation of 342 three-wheeler drivers from Colombo District. The analysis results show that fare setting, fare meters, regulation, standardization, and inspections, service time and operating hours, registration, identification, certification from relevant authorities (Provincial/Municipal council, any governing bodies), age and minimum level of experience, police recommendation, regulations for allocation vehicles to parks and related barriers are the factors relevant to the development of a regulatory framework for informal transport operations. Further, the paper also presents a price index based on cost-plus pricing method that may be used in a future regulatory mechanism.

Citation

Bandara, Y., Kevitiyagala, P., & De Alwis, N. (2018). A methodology for a pricing regime for three-wheeler taxi services. Sri Lanka Journal of Economic Research, 5(2), 20-39

• Journal Article Type: Article
• Publication Date: 2018-03
• Deposit Date: May 12, 2022
• Electronic ISSN: 2345-9913
• Peer Reviewed: Peer Reviewed
• Volume: 5
• Issue: 2
• Pages: 20-39
• Keywords: Informal transport, Para-transit, Three-Wheelers, Regulatory Framework, Price Index
• Public URL: http://researchrepository.napier.ac.uk/Output/2869495
• Publisher URL: https://sljer.sljol.info/articles/abstract/47/