New daily platform fee leaves Uber drivers in city feeling more deflated

The Rs 49 daily fee, imposed by the ride-hailing company, is in addition to the regular commission deductions and other charges already levied on drivers.
Image used for representational purpose
Image used for representational purpose

KOCHI: Amid the seasonal downturn in business due to summer vacations and soaring temperatures, online taxi drivers affiliated with Uber are facing an additional burden with the introduction of a new ‘platform fee’.

The Rs 49 daily fee, imposed by the ride hailing company, is in addition to the regular commission deductions and other charges already levied on drivers.

This has proved to be a further blow to the nearly 10,000 licensed drivers in Kochi, who have been struggling to secure enough rides to cover essential expenses like fuel, vehicle maintenance, and related costs. And, there’s concern that other online platforms, such as Yatri and Rapido, would also adopt similar fee structures.

“Many of us find it challenging to complete even five or six rides a day. The situation makes it difficult for us to cover the additional platform fee, which is deducted automatically by the Uber platform upon accepting a ride. It’s truly distressing,” pointed out P M Soujal of Kaloor, who has been with online taxi services since their inception.

An excess number of vehicles affiliated with online aggregators, coupled with the entry of three-wheelers into the space, has further saturated the market, he added. The lack of round trips and inadequate fares for long journeys further suffocate this community.

Moreover, arbitrary bans and retaliatory action of service providers, citing minor accidents, safety issues, and even unfavourable reviews, exacerbate their plight. While online taxi service providers such as Uber, Ola Cabs, Rapido, and others, initially attracted drivers with offers, discounts, incentives, referral programmes, and payment structures based on price slabs, drivers now feel betrayed as these benefits have dwindled.

“In the initial days, Uber provided huge bonuses and incentives. Even if we didn’t accept a single ride after being online for about 10 hours, we would still receive up to Rs 3,500 as a bonus,” said Shajo Joseph, secretary of the Yellow Cab Drivers Society.

S Suraj, a Kochi-based online taxi driver who was terminated from Uber’s certification after a customer mistakenly made a double payment and filed a complaint, shared his experience.

“The financial loss caused by the double payment made the customer distressed. A complaint was filed with Uber, blaming me for the episode. In response, Uber sent me a show-cause notice, and even my explanation did not satisfy them,” he said.

Ibrahim Kutty, from Kalamassery, uses the Rapido, Yatri and Tukxi apps for rides, in addition to hiring auto-rickshaws from the nearby stand. He favours Rapido as the platform does not charge commission fees, which has been replaced by a limited-access fee.

Additional burden

  • Rs 49 daily fee imposed in addition to regular commission deductions and other charges

  • Move a blow to nearly 10,000 licensed drivers in city

  • Concern that other online platforms, such as Yatri and Rapido, would also adopt similar fee structures

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