Uber and Ola Taxi Drivers Strike Leaves the City Worker Discomfort

Uber plays an important role in offering app-based ride-hailing service to the travelers at affordable prize. Uber faced a lot of issues at the first phase but it still continued to show huge revenue in the market. Now, thousands of cab drivers who are attached with ride-hailing services such as Uber and Ola across Delhi went on for a strike leaving the travelers and office goers in trouble.


Anand Rajendran

25 Mar, 2017

Uber and Ola Taxi Drivers Strike Leaves the City Worker Discomfort | BEAMSTART News

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People from all over the area struggle to go back and forth on Friday due to the reduction of the cab and high pricing. A taxi driver has been demanding to increase their fare from the existing 6 per kilometer and around 300 of them staged a protest in contrast to Uber and Ola at Jantar Mantar. These consequences affected hundreds of people who go to the office.

In older days, when people use an app based technique to book a cab, there are around 10 to 15 cabs available in the local area. But nowadays, even after half an hour people could not able to find a cab from the Noida city center Metro station. So, people suffer a lot by taking an auto and ended up paying more than hundred which is double the amount than the usual days.

As a result, the customers ended up with a complaint against the ride-hailing services such as Uber and Ola. A normal person spends about 50 rupees in a shared Uber cab from sector 28 to 63. But in these days, the price of the shared cab becomes more than 150 which are nearly double the times of the normal price.

The situation gets worse for the travelers who used to travel from Delhi to Noida by cabs as many companies do not offer cab facilities to the employees. So, they need to use the metro and then by bus to the office. There is a lot of problems as it takes a huge amount of time and so many people are affected by this problem. Some cab drivers, who have seen the passengers suffering in Noida says that there were working from outside the organization.

Also, they used to switch off their phones so that no one requests for a cab. Uber released a statement declaring that the issue was an unusual incident. They also declared that a group of people is disorganizing the Uber service in some parts of New Delhi and there has been a lot of threats and frightening.

The organization is working hard to make sure they offer reliable rides to the travelers so that we can keep the city moving. They also suggested calling upon the authorities to ensure safety to the riders and drivers.

The strike continues even on the 2nd day

The strike continues to develop even for the second day as drivers of mobile based cab accumulators continued their strike against Ola and Uber. Scores of cab commuters were helpless on Saturday as the mobile applications for enhancing these services denied to show the available cabs on these days.

One of the ride-hailing passengers explained that I had an Ola Share pass that allows me to travel from anywhere up to 8 km for Rs.40. I use to ride in these cabs regularly to travel to and from Metro stations. But, I am unable to get cabs during these two days. Other taxi drivers charged Rs 70 for the same distance across the cities.

A number of passengers who either need to board a flight or train have to reach the city with the help of Uber and Ola cabs. But they find it difficult to see at least a single cab in the surrounding city. Reports of cab drivers being stopped by the drivers came in from NCR, which affects a few passengers who could do the service.

Drivers demand that the fare for a single ride should be increased from Rs 6 per kilometer as it is much lesser than Rs 16 per km, the least fare described by the government of New Delhi for Radio Taxis. Reduction in the inducement for drivers has further disturbed them. The complaint has led to a huge shortage of cabs in the city due to the reason that cab aggregators have compelled the surging price.

Ola sends notifications to all its users that, due to local strike cabs will be subjected to availability. The cab facilitators have also removed the share option from the mobile application and it is demanding the user to consider using Ola Auto Service.

One of the travelers explained that he is one of those who works on Saturday and got late to home. Providing such cheap fares made me realize how dependent I have become on these days. The government needs to think in an alternative way to offer better transport facility to the local areas. Since Ola declined to comment on the strike, Uber declared that the number of cabs working at New Delhi increased gradually.

Business point of view

The encroachment of the foreign capital has killed a large number of business executives in the online taxi aggregation collide with established offline taxi players. Both the Uber and Ola have lowered rates across cities and it has made the Indian passengers to switch across application based cabs. It is questionable that they do not lessen the incentives for the drivers in order to manage a steady supply and livelihood.

A large number of taxi drivers have bought cabs with respect to loans on work guarantee given by the ride hailing companies. Ola even runs a model where the cab is owned by the company and drivers pays an affordable fee per day for many years. With fewer incentives, commissions, taxes, the supply of cabs, the income of driver have reduced for the past few months.

With continuous fight from the state government and an urge to increase more capital, it is essential for an app based firm not to neglect the drivers who act as a blueprint for the business. App based cab accumulators have to manage a delicate balance between demand supply and ride fares drive incentives to not let this business crash in India.

Conclusion

Even though the ride-hailing services continue to demand for increase in driver payments there is also other demands like they need to stop adding new cars and they need to limit their fleet, pay for penalties like cancellation of booking, fake rides which might not be their fault in the first place and paying insurance cover in case of accidents.

An estimation of about 1 lakh cars has been running on Ola and Uber services in Delhi, Noida, and Gurgaon. The ride-hailing companies count the national Capital Region (NCR) as one of the major market as well as Bengaluru, Kolkata, Mumbai and Chennai.

Both Uber and Ola faced issues from drivers and government while the drivers have been claiming for a good pay structure and reduce the working hours and state governments have refused the whip on certain services. Last week the Karnataka government stopped the car-hailing services of both the companies that it did not abide by the contract carriage permit issued to those taxis.

About the Author:

Anand Rajendran is CEO and Co-Founder of Dectar apps, best PHP scripts development company located in India. Dectar is a part of Casperon Technologies a leading social and mobile development company which is Developing Taxi Dispatch Software. I’m a Tech geek, Digital marketing expert, Entrepreneur, and Atheist who loves to write everything about PHP Scripts and mobile application development. Cabily Script is a clone of Uber, which developed by the tech gigs of his company.


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