The union expects a turnout of about 20,000 drivers and is demanding that the cab-hailing firms significantly increase fares from Rs6 per km and reduce their commission rates of 25% per ride, among other things.
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Sarvoday Driver Welfare Association, a Delhi-based union of drivers associated with Ola and Uber, has called for a strike on 22 March. Drivers said they will strike work again. I am not able to service my personal loan for the vehicle and plan to go back to a private taxi contractor," Tiwari said. “They used to charge 5% two-and-a-half years back, then it was 10% and now we are paying 25% commission for the last year-and-a-half. Surendra Kumar Tiwari, who has been driving for Uber for three years, said he will end his association with the company. Tens of thousands of drivers have left these platforms altogether last year and more may leave in the coming months, according to drivers and industry observers. The last time cab drivers struck work in the March quarter of 2017, cab supply slumped by 25%, according to RedSeer.
Third-party sellers at Flipkart and Amazon have also complained about increasing commission rates and higher shipping and other charges.įor Ola and Uber, the drop in incentives, which accounted for a large chunk of the incomes earned by cab drivers, has led to lower cab supply. Indeed, for all internet marketplaces, this is a problem. Cab drivers want higher incomes but Ola and Uber are more interested in increasing their margins-this conflict at the heart of the aggregator model will become worse as Ola and Uber will have to further cut losses as they attempt to go public. Drivers on Ola and Uber aren’t employed by the companies.ĭrivers either own their cabs or work for middlemen who own several cabs. But now, drivers are earning just Rs20,000 every month, of which Rs5,000-10,000 goes for EMI," said Tanveer Pasha, president of Ola, Taxiforsure and Uber drivers and owners association. “When Uber and Ola came to India first, they assured drivers something like Rs100,000-150,000 per month. Incentives as a proportion of overall ride value fell to 17% in the September quarter of 2017 from as much as 62% in the year-ago period, according to market research and consultancy firm RedSeer Consulting. Despite protests by cab drivers, Ola and Uber continued to reduce incentives through last year.