India Railway Firm Scraps Plan To Monetize Customer Data Following Uproar

Indian Railway Catering and Tourism Corporation (IRCTC), a state-run firm with a monopoly on online booking of train tickets, has scrapped its plan to monetize customer data after its tender drew concerns from many. TechCrunch: The Indian firm informed the local stock exchange Friday that it was scrapping its proposal because the Indian government had withdrawn the personal data protection bill. In a tender earlier, the firm had proposed appointing a consultant for digital data monetization on rail passengers' data. The tender sought to explore studying customers' behavioral data, their frequency of journeys, as well as geography, the kind of ticket they purchase and mobile number and gender. The plan, had it been approved, would have helped the firm increase its revenue by more than $125 million, according to an estimation by the firm.

At what cost to railway customers ?

[Alain Williams]

The plan, had it been approved, would have helped the firm increase its revenue by more than $125 million, according to an estimation by the firm.

So IRCTC would have sold customer data to others who would hope to make more than $125 million ... how would they do that ? Targetted advertising ? Differential prices (who they can charge more to) ? Or what ?

The money has got to come from somewhere ... presumably, ultimately, from IRCTC customers.

Re:

[Catvid-22]

I'm not saying I approve of the data-mining scheme, but commuters do other things besides commute. Restaurants and shopping malls, for example, might adjust their operating schedules and menus based on who goes where at what time. This might be especially valuable in such a diet-conscious and culturally diverse (divided?) country as India.

Re:

[PPH]

Who might be willing to upgrade to a seat actually inside [ibtimes.co.uk] the train.

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[Canberra1]

Mod up. They would not make 125 Million at all. They would make that money by selling personal data. The COULD make more money by allowing seat selection or put like minded people together like airlines do. Or place attractive single females next to men to pay for that privilege. Or put mothers with kids and screaming babies into the same overpacked carriage. The caste system may not exist on paper - but it is real.

Good news for a change

[VeryFluffyBunny]

This looks like a small step in the right direction. Govts shouldn't be selling citizens' private data to corporations. What kind of a betrayal of trust would that be?

If only Facebook followed suit.

[greytree]

Maybe then Zuckerberg could sleep at night.

Fail

[dohzer]

Sounds like they forgot how to do this properly. It starts with not telling people you're going to monetise their data.