An Unending Ordeal of Drivers Working with Industry Giants like Uber and Ola
Cab driver incentives are no longer being paid (or are being paid less) by app-based cab aggregators.
Recently, drivers working for app-based cab aggregators went on strike in all 50 states. They didn’t like the commission that these businesses charged for each ride. According to drivers, low profitability has resulted from high commission rates and rising fuel costs (both for CNG and gasoline). Making even Rs 25,000 a month is difficult for individuals who must pay for an automobile that belongs to someone else and for whom they must make a monthly payment as a rental charge.
Many drivers are switching to other jobs or becoming delivery boys due to decreased profitability. Additionally, this causes various other conflicts. Driving without the air conditioning on, for instance. Almost everyone who regularly uses ride-hailing apps has gotten into a heated debate with the driver about the AC. According to drivers, turning on the air conditioning lowers the car’s profit margin and average cost per mile.
Drivers unwilling to take brief rides is another effect of lower profitability. Cab drivers frequently decline short trips with bills of less than Rs 100–120. Three or four of these brief rides are supposedly equal to one big ride. They don’t want to waste time on shorter trips because of this. The fact that drivers may now see the customer’s destination makes the situation even worse.
Another result of lower profitability is that drivers sell their vehicles and look for new employment. Despite the lack of precise data, all parties involved agree that the number of cab-hailing apps has decreased. Many drivers who were unable to endure the protracted COVID-19-induced confinement were forced to sell their vehicles. While others have chosen to leave the trade since their meagre pay would not allow them to live comfortably in urban areas.
Furthermore, Cab driver incentives are no longer being paid (or are being paid less) by app-based cab aggregators. Initially, cab drivers received a bonus for picking up a predetermined number of rides each day. Incentives are now only given out on busy weekends. These apps operate in a way that benefits the drivers who log more miles. As a result, those who once employed driving cabs as a secondary source of income are now all but extinct. As a result, there are now fewer taxis on the road, widening the supply-demand mismatch. Drivers based in Bengaluru have launched, Namma Yatri as a befitting reply to the aggregators of transport industry like Ola and Uber.