Ola Cabs has announced a Rs. 5 lakh insurance cover for all of its drivers. The taxi hailing company will also cover education costs for the children of its drivers — upto Rs 24,000 per child.
What’s going on? Back in 2013, ride-sharing companies like Ola and Uber battled each other by offering drivers massive incentives. However, once they established themselves, Ola & Uber scaled back these initiatives.
As a result, payslips for Ola and Uber drivers have dropped by a third in the last one year, according to an ET report. Predictably, drivers are unhappy and service quality has dropped across networks. Ola’s decision to offer insurance to its drivers could be seen as the proverbial olive branch offering.
Why now? Armed with a fresh round of funding, including $1.1 billion from Tencent and Softbank in October this year, Ola is going all out to woo customers and drivers. For customers, there are new services like in-cab entertainment Ola Play and auto services. For drivers, its insurance.
Guess we haven’t heard the last of the Ola-Uber showdown!