KOCHI: When online taxi service companies like the Uber and Ola arrived in Kochi, they changed the way Kochiites travelled. They even transformed the lives of the drivers who joined them. Cheaper rates and daily offers had people opting for online cabs while attractive incentives had the drivers salivating. But like everything that shines when new, the online cab services too have lost some of their sheen.
Two years after their entry, the Uber and Ola have not only increased the fares and reduced the frequency of daily offers but also cut back on driver’s incentives. Though the fare hike has not affected the customers much due to the offers given by the companies, there has been no proportional increase in the drivers’ earnings since the incentives remain the same. This has left them, especially those who have come from other districts, fuming. “Uber increased its fare but didn’t bother to raise the incentives,” says Krishna, an Uber driver from Vypeen.
This move won’t hurt those who own their cabs, he adds. However, those who have taken loans to buy their vehicles are feeling the pinch. Krishna says, “Such drivers are facing an uphill task, since nothing much is left with them after they pay the EMIs. And for those from the other districts the situation is very bad.”
Nithin P M from Iritty in Kannur is one such driver. A year ago he took out a loan to buy a Figo Aspire and headed to Kochi to join the online cab service. “Initially, I used to earn Rs 50,000 per month. But now, my earning has dropped to Rs 10,000,” says Nithin, who takes up calls for both Ola and Uber. The young driver not only has to pay the EMI but also finance the education of his wife and the daily needs of his family back in Kannur.
Following a drop in his earnings, Nithin had to vacate the room he had rented at Thevara and is now forced to sleep in his car. “I gave up my job as the area sales manager of a mineral water company and bought a new smartphone with a high speed internet connection to sign up for the job. But now I am not very proud of my decision. I am struggling to meet the needs of my family,” says Nithin. “They call us driver partners but won’t even give the consideration accorded to an employee.”
According to Mohammed Shalu, who has been an Uber driver for the two years, an increase in the number of cabs operating in the city is the reason behind a drop in earnings. “There are over 20,000 online taxis in Kochi. Taxis lined up along the roadside awaiting passengers has become a common sight. A matter compounded by the preference shown by the companies’ to the new entrants when it comes to allotting trips,” says Mohammed as he awaits customers.
It’s been three hours and Mohammed was yet to be assigned a trip. His situation is so dire that he is forced to accept trips even in the night and hence, lives in his car. “I have borrowed money from nearly everyone and I am struggling to pay my EMIs. The bank may impound my car anytime,” he says.
Online cab companies, however, say the incentives evolve over a period of time and the earnings are still attractive. “Since online cab service is a two-sided market, we have to balance the needs of both the riders and the drivers. We roll out incentives and promotions to introduce the service in a new city. Once the number of people using online taxi services increases and the driver’s earning too simultaneously, we adjust the incentives,” says a spokesperson for Uber.