Unfulfilled promises to cab drivers give Ola, Uber a bumpy ride

The first thing one notices outside Lucknow railway station is life-sized hoardings by cab aggregators Uber and Ola. These hoardings promise prospective cab drivers a monthly income of more than Rs 70,000. It is this dream of a better life that draws many. However, the conflict begins when the companies are unable to keep their promises.

Uber and Ola drivers are either on strike or have called for one in the next few days. While Mumbai, Bengaluru, and Pune drivers have been on strike since Monday, drivers in Delhi are planning to strike from March 22. Uber and Ola have called the strikes in Mumbai and Pune politically motivated.

More liabilities than perks 

While drivers have a host of grievances against Uber and Ola, the biggest one is about the monthly income they were promised.

“They said our income would be close to 100,000. We took loans, bought cabs and initially earned Rs 80,000 to Rs 90,000 monthly. The companies kept a commission and it was a smooth operation. Slowly, the commission increased and income fell. Now, we earn around Rs 40,000 a month. Paying instalments for the cab and managing other expenses are impossible,” said S P Soni, general secretary of the Sarvodaya Driver Association. Cab aggregators say that drivers are given perks. However, drivers said these were minuscule in comparison to the money promised. According to experts, Uber and Ola do not charge any or less commission from drivers when they enter a new city. However, when the demand increases, they charge between 20 per cent and 25 per cent as commission.

Same tussle all over the world 

Cab drivers in other countries have also voiced the problem of dwindling income. Travis Kalanick, the founder and former chief executive officer (CEO) of Uber, entered into an argument with an Uber driver who complained about low income. It is only some drivers who are disgruntled, say cab companies

According to Ola and Uber, not all drivers are against them. “A large number of our driver partners in Mumbai and Pune have reached out to us after they were forcefully asked to go offline by a group of protestors,” the Uber spokesperson said.

The company said drivers who are online for eight hours a day earn Rs 1500 to Rs 2,500 per day after deducting Uber’s 20 per cent service fee.

The way forward

According to experts, the companies need to start connecting with the drivers. They should not follow the formula they use for dealing with executives. 

“They have to be dealt differently. There is a slump in the income of drivers, which is significant. Companies are under pressure to keep the rates down,” said the former CEO of a cab company that competes with Uber and Ola.