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Ola, Uber face supply squeeze: 24% drivers leave as incentives drop

Most drivers have either moved on for other offline opportunities or quit the profession altogether

BS Reporter  |  Bengaluru 

Ola, Uber supply drops by 25% as drivers leave due to lack of incentives

Two of the country’s largest taxi-aggregators, and Uber, saw the supply of on their platforms declining to nearly three-fourths in the March quarter of this year. With disgruntled opting out due to a fall in incentives, the total number of they run fell to around 380,000 in January-March from 500,000 in the previous three-month period – a drop of 24 per cent – shows a Livemint report.

The report, citing figures from market research firm RedSeer Consulting, also says that a large number of on and either moved on to explore other offline driving opportunities or quit the profession altogether. and drivers, it is believed, saw their earnings declining by as much as 60 per cent in the absence of provided by the

In Bengaluru and Delhi, the two largest markets for ride-hailing services, have staged multiple protests complaining about falling earnings. While the state transport departments have tried arbitrating talks between the two parties, say no solution has emerged so far.

While employee grievances generally fall in the labour department’s ambit, on and platforms, technically, are not employees of these Instead, they are partners who willingly list their vehicles on these platforms and offer services to the customers brought to them by the

Several and media reports have suggested that and had verbally promised that they could earn up to Rs 1 lakh if they drove for them. Several said they were able to hit targets initially, but their earnings halved as the began withdrawing in the past few months.

Bengaluru and Delhi are estimated to have over 100,000 that are listed on either of the two platforms. With dropping, the number of rides on and fell five per cent in the March quarter on a year-on-year basis, show the RedSeer figures.