TAXI- DRIVING AS AN ECONOMIC ACTIVITY

This paper seeks to provide clarity by offering a framework for understanding various pay and size concepts and a common terminology. Then, using newly available administrative data on Taxi and auto drivers, it answers two key questions: (1) what is the weekly Fare-money earned by Taxis and auto-rickshaws for services, comparable to weekly fare-money i.e., net income after accounting for Taxi/auto service commissions and fees, vehicle expenses, payroll employees’ benefits, and the interaction of expenses and benefits with the tax code)? (2) To what extend is owning/driving a taxi/auto-rickshaw profitable?, and (3) What is the scale of Taxi/auto service, and gig work, in the overall Champhai economy. The case of Champhai shows that the taxi and auto rickshaw provides operators with more than mere subsistence. However, the large disparities in earnings between the categories of stakeholders show that all of them do not fare equally well from this extremely competitive activity. Owners- investors, who derive high incomes from their vehicles in a fairly brief period while escaping from the negative consequences of actually driving, are the main winners. Among the drivers, owning the machine is also a positive factor .Because of their experience, or because they work at times when competition is less fierce, some drivers manage to generate an income which provides some hope of escaping from poverty. However, there is disparity in income generated with every increase in commercial vehicle and also, the study is specific to Champhai- a town in Mizoram.