Uthaya Kumar has partnered with taxi drivers and ensures that they get 30 per cent of the profit.
Ramabhadran Sundaram, the Director of Alumni Impact at Teach for India, was pleasantly surprised to discover that the cab he had booked was driven by an ISRO scientist named Uthaya Kumar. Uthaya’s journey from working at India’s esteemed space agency to launching a successful business generating Rs 2 crore is truly inspiring. Ramabhadran shared Uthaya’s remarkable success story on his LinkedIn profile, highlighting the unexpected encounter.
Ramabhadran Sundaram, in his social media post, wrote, “My Uber cab driver has done PhD in Statistics. He used to work with ISRO. He motivated me for leadership lessons.” But who is Uthaya Kumar and what is his story?
Uthaya Kumar hails from a small town in Tamil Nadu’s Kanyakumari. He has an M.Phil and PhD in Statistics and then joined the Indian Space Research Organisation (ISRO) as a scientist. He had one of the most important tasks at ISRO, overseeing and monitoring the accuracy of liquid fuel densities used for satellite launches. The safe and successful launch of satellites was possible because of his experience. After working here for seven years, he became an assistant professor at a college. Despite his successful career as a scientist and teacher, he found his calling in establishing his business setup.
In 2017, Uthaiya Kumar kickstarted ST Cabs with the help of his friends. The name ST is the initials of his parents- Sukumaran and Tulsi. He kicked off the start-up with a few cars and now, he has a fleet of 37 cars, having an annual revenue of Rs 2 crore. He now runs the business with his brother.
So, how does his business model work?
Uthaya Kumar has partnered with taxi drivers. He ensures that they get 30 per cent of the profit. They have a 70-30 revenue-sharing plan and the drivers at ST Cabs have a huge stake in how well the business runs. This has boosted the business and empowered them. Many have returned the profit to the company to grow the fleet. He has saved money to offer housing facilities to his migrant employees and bear the expenses of the education of children in his area.
