Cab aggregators Uber and Ola Cabs are seeing some disruption in their services in Mumbai, Delhi and other cities. Hundreds of drivers are participating in strike to protest the falling incentives and income. About 50 to 80 percent of cabs reportedly remained off roads, and with the involvement of associations, the strike could continue indefinitely.
Over the past one year, fuel prices in India have risen over 20 percent. However, according to drivers, the fares are still the same, making it difficult for them to meet expenses, even after working longer hours. Also, the incentives for drivers have dropped from 24 percent last year, to 15 percent on gross booking value. In 2016, the incentives were about 60 percent, RedSeer reports.
“An Ola or Uber driver is now earning only Rs 4.30 per km compared with Rs 15-20 per km a few years ago. Driver incentives have also fallen by 80% since 2016,” Anand Kunte, advisor to the Maharashtra Rajya Rashtriya Kamgar Sangh, told ET. We have also reached out to Ola Cabs, and waiting for a reply.
“We regret the disruption caused to our rider and driver-partner community due to a small group of individuals. We remain committed to serving the city and ensuring that our driver partners continue to access a stable income, while giving riders a convenient, reliable option to get around their city,” an Uber spokesperson said in a statement.
According to an HT report, there are about 50,000 app-based taxis and their drivers are demanding base fare in Rs 100 to Rs 150 range depending on the type of vehicle. They also expect the per kilometre fare to rise from Rs 18 to Rs 23.