CHENNAI: A little more than a year ago, cab drivers in Chennai got Christmas early — now leading cab operator Ola Cabs began a concerted drive to sign on drivers for their platform. The bait? Incentives and bonuses that were unheard of at the time. Now, it’s biggest rival Uber seems to be on the same track. Starting from a few weeks ago, it began running advertisements offering a joining bonus of `4,000 to any driver to join their platform.
While Uber has been in the city for the last year, its growth rate has not been as staggering as its rival, Ola. Sources say their fleet is only 1,400 to 1,500 cars in Chennai. However, the new expansion drive seems to have started in earnest. Uber has been sending out SMSs to drivers on competing platforms daily for several weeks.
When City Express spoke to drivers with its competitors — Ola, Taxi for Sure, Meru, Fast Track and NTL among them — they all agreed to one thing. “Uber is the one who seems willing to go the extra mile to get drivers on their company now. Most others, like Ola, have silently stopped the incentives that they started with. But now, Uber is offering something similar,” said S Thiagarajan, a former driver with Ola who signed up with Uber two weeks ago.
So what is Uber promising that the others do not have? Drivers who are willing to or considering the move, say it’s not about being very different but about what a company that is relatively new on the market would be willing to give its drivers. “Uber is offering pretty much the same things as what Ola and the others are, but just a little bit more,” he said. For one thing, the joining bonus of `4,000 is a flat payment for any driver to get attached to the platform. However, it can be availed only after driving a specific number of trips.
Uber also does the same as its competitors in paying above the per kilometer rate charged to its customers. “The customers pay `8 per km. But Uber is promising an extra amount for the drivers,” said Kannan who is considering a shift. Ola, said drivers, also provides the same kind of differential rate. “But what was `4 extra per km is now only `2. They’ve got enough drivers so they don’t need too many incentives. Uber is just growing so they will probably give us more,” said a hopeful Kannan. There are also peak hour bonuses provided by both companies.
But Uber Head for Chennai, Santhosh Sarangan disagreed. “This is part of a continued policy of expansion and we have been growing at a rapid pace from the time we started here,” he said, adding that the ad campaign was part of their marketing strategy. Uber has also been simultaneously pushing offers for customers to get on their platform — the most recent of which was Tuesday’s two free rides.
