Incentive cuts keep Uber, Ola drivers off the wheels in Kerala

Over the past one year, the country’s two largest ride-hailing companies Uber and Ola have been witnessing many cases of drive partners “unattaching” themselves.
Representational Image for Ola cabs. (File | Instagram)
Representational Image for Ola cabs. (File | Instagram)

KOCHI: Over the past one year, the country’s two largest ride-hailing companies Uber and Ola have been witnessing many cases of drive partners “unattaching” themselves. The increasing fuel prices, huge commission taken by the companies and zero incentives have created an apathy among the drivers. Several others still continue the tie-up as they have to repay the loans taken to buy the vehicle.

When the companies began service, around 10,000 drivers had attached themselves in Kochi. It was 400 in Kozhikode, 300 in Thrissur and more than 3,500 in Thiruvananthapuram. However, today only 5,000 cars take rides for Uber and Ola in Kochi. It is 150 each in Kozhikode and Thrissur, and 1,500 in Thiruvananthapuram.

Kerala Online Drivers’ Union president Jackson Varghese said around 40 per cent of the drivers have withdrawn from both the companies.“A driver could make more than Rs 1 lakh per month when the service was launched and Rs 96,000 per month until one-and-a-half years ago. Now the drivers are forced to take trips even suffering a loss as they’ve to repay the vehicle loans. Around 60 per cent of them are facing crisis,” said Jackson.

The recent floods did not spare online taxi drivers. “As many as 117 cars were damaged in the deluge. I lost my car. Like many others, I also have joined the food delivery brigade which is now quite popular in the city. Repaying the loans has always been my priority,” he said.

The surge fare too has hit the services. “With Uber charging 60 to 70 per cent as surge, customers are giving online taxi service a wide berth. They now opt for the public transport system,” he said. He said surge fare does not benefit drivers since the company takes its cut of 26 per cent as commission.

Big incentives have all but disappeared

Kerala Online Drivers’ Union president Jackson Varghese said the boom the online taxi sector witnessed deflated very quickly.“The companies attracted the drivers through lucrative offers and goodies. But slowly they changed their tone. From getting incentives just for being online for five hours, the situation changed to zero bonus. Also, the companies began charging 26 per cent as commission,” said driver Biju (name changed).

Jackson claimed an RTI query to the Transport Commissionerate revealed these online taxi companies were operating without licence or permit.“So, this is all a sham,” he said. Hence the drivers have approached the companies asking them to adopt the rate fixed by the government.“But they refused to even consider our demand since they are global companies. We have given a representation before the Transport Commissioner and the Fare Revision Committee. The committee is expected to submit its report before the Cabinet by this month end,” he said.

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The New Indian Express
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