Cycle rickshaws don’t always initiate a contract with the customer (meaning quoting a price for the journey to be undertaken) before plying which implies that they vest trust in someone who has more bargaining power (customer is most likely several notches above the rickshaw puller in socio-economic pyramid). In my case, I hardly ever ask the price and the puller himself doesn’t quote one in almost all cases. I live in Delhi and travel by rickshaw often.

In the event of a dispute if the money paid by the customer is adjudged insufficient, rickshaw puller would lose if the customer persists. (Opportunity and economic costs are much higher for the puller to get the customer to pay a higher price.) Also, this is a perfect market having many buyers and many sellers where no one person or a group of persons can manipulate the price. (The supply side is not entirely free due to many reasons)

Yet I have seen many people including Irfaan Alam argue for fixing a floor price for rickshaws which seems absurd.

Write Comment