Is Uber/Ola like Hiring possible for Tractors?
https://tractorguru.in/With the introduction of companies like Ola and Uber, the Indian taxi market has witnessed a major overall breakthrough. Not that there was an absence of the cab system in the market earlier, but it was completely different as what it is now. With the advancement in technology and almost everyone with access to a smartphone, booking a cab has become a child’s play. It became an instant hit and almost all the traditional taxis that one had to hire by paying a huge sum have taken a backseat.
If this system of hiring cabs and paying only in accordance with the distance travelled is successful for the regular commuting, it may also see the light in terms of tractor hiring. Companies like Uber and Ola have yielded positive results in the past couple of years without owning the actual cabs. All the companies were expected to do was to connect the cab drivers to the customers.
Same can be done in case of taking tractors on rent. There are many farmers across the country who own multiple farm implements such as tractors and other additional implements. On the other hand, there are farmers who cannot afford to own a single tractor. In such cases, the farmers who require the tractors need to borrow the tractors and pay the rent accordingly. This requires individual relationships and if often unreliable and expensive. However, if there is a set up like the one in the cab hiring services, these farmers can hire the tractors on an hourly basis and pay only the amount of rental price for the time they need the product.
It can be possible to launch a platform to connect the tractor owners to potential users. The farmers looking to rent the tractor should be able to do so via phone on a call or on an application. The person should be able to mention the requirement of the additional implements required along with the tractor and can be charged accordingly. What will make this system successful is the transparency of the services being offered along with their charges? Just like when hiring a cab via Ola and Uber, all about the tractor being hired will be available on the phone of the customer along with the operator and tractor details.
Along with farmers, the platform company can look out for the dealers and OEMs willing to rent out tractors. In this way, there will be a pool of implements and tractors available sufficient to meet the demand in the market. To make this idea successful, the first and foremost step involves creating awareness among the farmers about its benefits.
As most people are sceptical about a new strategy, they may take time to accept and trust it. Once the farmers realize the ease of renting out tractors and paying only on an hourly basis, they are likely to embrace this step in the farming sector. The platform company can adopt a commission system on each rental and keep it fixed to avoid any confusion. The customer will be charged accordingly and the details of the bill should be transparent and clear.
What can be an attractive point of disruption is the present disparity of the rent charged. Presently, some tractor owners charge a high amount of rent as per their power and there is no one to intervene in the process. Also, there is presently no system of renting tractors on an hourly basis. With the introduction of a tractor pay per use platform, there will be uniformity in the rent charged and the farmers should only pay for the actual time of usage.
Karnataka is the first state in India to start the application-based renting system of the tractors in India and has done it quite successfully. However, to take this step pan India is another challenge. But probably with the success in one state, the farmers in other states may also like the idea and may embrace this new change. Some startups have launched operations in India over the last two years, however, these are currently in pilot stage and are yet to realize product-market fit.
Source: https://tractorguru.in/
