Drivers of cab hailing services like Uber and Ola are an unhappy lot. The drivers protested in Mumbai and Delhi. Their counterparts in Bangalore are threatening to follow their example.
More than 7 lakh drivers use the services of both companies, and they have complained about reduced incentive margins, facilities and difficulty in making ends meet.
TheBigScope spoke to several drivers in Bangalore on Tuesday and asked them one question: why are they unhappy with these companies? Most complained about reduced incentives, revenues and profits.
Speaking to TheBigScope, Tanveer Pasha, president of Ola, Taxiforsure and Uber drivers and owners association, said that cab drivers were an angry, frustrated lot. Pasha wants the Karnataka state government to find solutions to the drivers’ problems in the next two months.
“There is no use of two day protests (like in Mumbai and Delhi) as state government is helping the cab hailing companies. Within few months, we shall do indefinite strikes,” he said. “..If needed, we will burn our cars,” he added.
An Uber spokesperson said that driver earnings across India have largely remained sustainable and consistent over the last several months. There have been no significant changes or adverse impacts to the same.
“While earnings is not a one size fits all and varies by the time and trips individual driver partners take on Uber, over 80 percent of drivers who are online for eight hours a day continue to make between INR 1500 to 2500 net after deducting Uber’s 20 percent service fee,” the spokesperson said in a statement.
But analysts reports differ. According to RedSeer Management Consulting, incentives have fallen to 17% in 2017 from 64% in 2016.
Moreover, Sanchit Vir Gogia, the founder and chief executive at consultancy Greyhound Research said that 30 percent Ola and Uber drivers will leave in the next few months. Gogia added that these companies need to focus on utilizing their existing capacity rather than adding new vehicles to their fleet.
Check out TheBigScope’s interview with the Tanveer Pasha, president of Ola, Taxiforsure and Uber drivers and owners association for more on the issue.