City drivers walking away from app-based cab companies

Drivers, who flocked in large numbers to join app-based cab companies owing to the promises of incentives, are now leaving their jobs, steeped in debt and losses.
City drivers walking away from app-based cab companies

BENGALURU: Drivers, who flocked in large numbers to join app-based cab companies owing to the promises of incentives, are now leaving their jobs, steeped in debt and losses.  Cab owners, drivers and unions are observing an increase in the number of people who have left their jobs from companies such as Ola and Uber, due to lack of incentives.

Ramesh Gowda, member of Bruhat Bengaluru Taxi Driver's Union, said, “In the past year, 200 members from our union have left Ola and Uber. They would get incentives earlier, but don't now. Those with alternatives have sold off their cabs. Some, with car loans, who support their families, pay rent and educate their kids, have started driving with other travel companies or joined call centres.”

Kiran Ranganath, a driver who was formerly working with both companies, said, “I stopped driving for both app-based companies six month ago. I took a car loan, for which I am paying Rs  17,000 per month. When I attached my car to these apps initially, we received Rs  400 to Rs 500 per ride in incentives. This stopped later, and the commission rate per ride grew from 10 to 25 per cent, and finally to 30 per cent per ride. Even after driving for 12 to 13 hours a day, I could barely save anything after paying for rising diesel costs.”

“The revision of fares by the Transport Department did not work, and neither did the strikes we held last year. It was torture for us after one point, and now, I work independently as a driver for travel companies,” Ranganath added. CJ Ramesh, another driver who quit the app-based company three months ago, said, “When they launched in the city, customers would get discounts and we would get paid well too. Later on, customers continued to enjoy low prices, which came out of our pockets. For a ride of Rs 100, we used to earn Rs 150 with incentives. Today, for the same ride, a driver would lose Rs 30 to commission, Rs 40 to Rs 50 goes for diesel, and is left with Rs 20.” Ramesh owned four cabs, of which he lent three to other drivers and drove one himself. After quitting these companies, he sold three of the cars and drives only one.

“Several drivers have started leaving as they have no option. Many, who came from Mandya, Hassan, Hubli and Dharwad, are now leaving Bengaluru due to not being able to sustain their livelihood. Though I used to earn Rs 80,000 per month, of which I spent Rs 20,000 on diesel, I later struggled with Rs 60,000 per month, of which Rs 30,000 was spent on fuel. I earn from my own bookings these days,” Ramesh added.
Somashekar K, leader of Namma Chalakkara Trade Union, believes that at least 10,000 drivers have left both platforms this year.

“Drivers in our union have joined call centres. Some have tied up with IT companies in ITPL, Bellandur, Whitefield and Electronic City to ferry software employees. Some of the drivers had their cabs seized by banks for non-repayment of loans. In one-and-a-half years, the taxi business will be finished. Metro is coming up all over the city as well. It is not working out financially for drivers,” he said.

Not the case, says Ola
While Uber refused to comment on the matter, a spokesperson from Ola countered, “This is not the case. The churn of employees leaving and joining the industry is the same as it is with any other industry. For every driver-partner that chooses to leave for personal reasons, there are a lot more drivers joining in. Our driver base grows every day in the city, and several have found this to be a great source of income.”

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