30/10/2025
"Realignment of business strategies based on company priorities"
When we started Palanquin Ecotales, airport transfers was one of our primary offerings. Guwahati Airport (GAU) is the biggest and the most serviced airport in the North East, and can be called the Gateway to the North East. It has direct connectivity with all the metro cities and major cities of India. Our airport transfers used to be done at flat rates of 600 for sedan category, 850 for mid sized MUV like Ertiga and Carens, and 1500 for Innova Crysta and Hycross. From anywhere in Guwahati, and to anywhere in Guwahati, whether it be a 10 km travel, or a 35 km one, the cost was the same.
Guwahati Airport is situated quite far from the city, and is at a distance of about 30 kms from our garage. So, each airport trip used to take us 60kms, if we could not get a corresponding transfer to club it with.
We kept the rates the same for both night and day, and it was a great success. We got our first batch of customers through our airport transfers, but financially, we were burning cash through our airport transfers. After spending on fuel, water bottles, driver charges, were left with almost nothing. Only when we got a corresponding pick up after a drop, or a drop coincided with a corresponding pick up, we actually made some money. We did not have an app like Uber, Ola to pick bookings at the drop off point.
As on date, we have not stopped the airport transfers entirely. It is still there, but we have raised the rates, with rate of 1000 for sedans, 1500 for Ertiga and Carens, and 2000 for Innova Crysta and Hycross, realigning our airport transfers strategy. As a company in its initial stages, we felt it was not right to burn cash to earn customers, instead we should focus on profitability and realigned our services to focus on the sectors where the scope of profitability was higher - services for tourists to Assam, Meghalaya and Arunachal Pradesh, and Employee Transportation Services.
As we look at the numbers now, our airport transfers through sedans are lower, because that segment is catered to well by the aggregators like Uber, Rapido, Ola. People using sedans are the cost conscious category, for whom mostly customer experience matters less, cost savings matter more. In the segment not being catered to by the cab aggregators, like the 7 seater segment, we continue to do quite well.
More on this segment and its learnings in subsequent posts...
In pic: One of our flyers in our initial years when we started out.