With incentives falling, Ola and Uber drivers striking own deals with Customers
Cab drivers working with app-based ride-hailing services such as Ola and Uber have seen their incentives and take-home incomes plunge over the past four years putting them in a spot. Drivers, who have bought vehicles on loans, feel the pinch the most and as a result, some seem to making their own deal with the customers.
 
According to consulting firm Redsheer, the drivers incentives i.e. percentage of gross booking value has fallen from 60 per cent in 2015 to just about 8 per cent in 2018. The sharp fall has pushed the drivers into striking private deals with willing customers where rides are cancelled on the app while customers continue their journey, paying the drivers an agreed amount. These private arrangements have been mostly made in Noida and Delhi.
 
Talking to IANS several cab drivers attributed the reason to lowered incentives given by the company. An Ola bike driver in Noida who asked a customer to cancel the ride and pay him the full amount told IANS: "In a bike ride worth Rs 20, the company is taking as much as Rs 7... what am I supposed to earn?"
 
Another cab driver proposing a similar scheme said that his "incentives are nowhere close to the amount earned three years back". "Now I have lenders on my head all the time. I do not wish to continue, but I am stuck."
 
Asked about this trend, Ola said: "We urge passengers to always take rides through the Ola platform and not get into private arrangements with drivers. The Ola platform has specifically built-in safety and security features that are designed to support users from the moment a ride is booked till it is concluded."
 
"By choosing to disconnect from the platform, users lose out on the safety net that can protect them in case of any anomaly. We encourage all our users to report any untoward driver behaviour immediately using the in-app support functions, or our social media handles which enable us to swiftly attend and resolve issues," the company added.
 
Redsheer had said that an online cab driver who works around 25 days a month, on an average, makes nearly Rs 50,000 a month. However, a good 40-45 per cent of this goes towards the fixed costs such as installments while another 20-25 per cent goes towards variable costs like fuel.
 
"Thus the driver's take-home income is around Rs 18-20,000 per month. Since the online cab aggregators started focussing on profitability and reduced the incentives, the take-home incomes of the drivers have dropped drastically. But they still continue to earn higher than the offline counterparts, who earn about 15-18,000 a month," Redsheer said.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
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    COMMENTS

    Gerard

    4 weeks ago

    Uber = A broken thing on its last leg.

    Ajay Pandit

    4 weeks ago

    Uber must think about driver Partner day by day they are reducing incentive

    Shashibhushan Gokhale

    4 weeks ago

    We don't know the whole picture. We hear only the driver's side. If it was really non-viable, they would have left the platform anyway. I think it is incorrect to take the private ride (whenever feasible).

    Experienced this in Chandigarh in April 2018. The driver came for pickup and told us to pay the amount showing on the app by cash, else he would cancel the trip. I did not want to deal with the driver privately, but as was in a rush to catch a flight, and so eventually agreed.

    I could not report the problem to Uber as the driver/trip details did not show up on Past Trips as it was cancelled by the driver.

    Passengers will report only if there is a way to report the malpractice.

    REPLY

    Gregory Chips

    In Reply to Shashibhushan Gokhale 4 weeks ago

    It doesn't matter..if u ride on an app based taxi like ola uber......or if u get into a deal with the drivers... All it matters is u getting a cab or no.....and I seriously believe...thes companies just talk about SAFETY AND ALL.. BUT EVEN IF U LOOSE A WALLET OR A CELL PHONE ON THE CAB.... THESE CAB COMPANIES ARE NOT EVEN TAKING RESPONSIBILITY FOR THAT DESPITE THEY HAVE ALL THE INFORMATION FOR THE DRIVER AND CAB AND EVRRYTHING...I think it's stupidity to argue with the drivers....its better if u need the cab agree to deal that works for u... If it doesn't...then just let it go...Simple as that..

    Om Sharma

    4 weeks ago

    A driver who works 25 days a month makes 45K excluding gas & EMI.

    REPLY

    ANNPURNA TRAVELS

    In Reply to Om Sharma 2 weeks ago

    If you think if driver is earning 45K than you should invest 10lakh buy new car pay 25k salary to driver 10k for fuel & every quarter maintenance.
    If all expenses you calculate in your hand 15~20k actually earn.

    Mohammad Waseem

    In Reply to Om Sharma 4 weeks ago

    No , they earn between 22 to 25 thousand excluding EMI and fule n all, if they drive 25 days and they drive 12 hours in a day then it is possible for 25 thousand in a month. Agar Aapne aik bhi din miss Kiya to seedha asar aapki earning par padegi Jo 25 hazaar se bhi hojayegi.

    Ajay Pandit

    In Reply to Om Sharma 4 weeks ago

    No they earn 45 to 50k including emi and fuel costs

    Sandeep More

    4 weeks ago

    I've found that I've to pay more than double the fare than that I would have paid had I gone by App based payment. I learnt this the hard way when I kept the driver's welfare in mind. Cheating and extortion never cease when you are on your own

    charan raj

    4 weeks ago

    Is it not right to do this? asked by me as ah driver we risk our life to give good service to public.
    Driver is the third most important person in the world after farmer and army what we get is disrespect from customers(not all except 30% ) and we work like slave's to the aggregaters company24/7 at the end of the day we get around 600/day y should we do this even if we work as delivery boy we get more paid. Above commentors plz note we drivers are not cheating anyone agreegators company are fooling with public and cab drivers/owners

    REPLY

    Maxwell James

    In Reply to charan raj 4 weeks ago

    I totally agree with you I'm a Uber driver in Ghana...
    We are facing the same problems here in Ghana.

    charan raj

    In Reply to Maxwell James 4 weeks ago

    Oh is it sir sorry to hear this I thought we indian's only have facing this problem and
    We don't have choice also to quit because of car Emi and family commitments etc...

    Ajay Pandit

    In Reply to charan raj 4 weeks ago

    You are absolutely right sir ..even an autoricksha wala earn more than a uber driver Partner. This is unfortunately very sad that uber is is fooling their drivers

    charan raj

    In Reply to Ajay Pandit 4 weeks ago

    Ajay sir auto Ricksha driver have union thing which they get support but what about taxi drivers no one will care about them and we don't have fixed rate(meters) like autos..

    Nilesh K

    4 weeks ago

    Ola and Uber don't consider the importance of Cab owners. Drivers are cheating both Cab owner and Ola,Uber. There is no control on the driver's. They just loot money and change Car with another partner. Finally Owner suffers loss and they had to stop business. This should be stop. Owner should get option to allow-disallow driver to attach other car.

    MS junnaidi

    4 weeks ago

    It is same in mumbai also but company r not bother about the loses they r faceing they take more money from the customer and pay less to the driver

    Rama Rao

    4 weeks ago

    It's same here in Bengaluru also
    😂😂😂😂

    sivayya namo1234

    4 weeks ago

    Thanks

    Vodafone writes off book value of Indian operation, CEO flags liquidation risk
    The price wars in the Indian telecom market have pushed the value of Vodafone's local joint venture to zero or nil as Vodafone CEO Nick Read indicated that the Indian operation is headed for liquidation unless the Indian government provides relief on mobile spectrum fees.
     
    The parent company, Vodafone, has written off the book value of the Indian business. As per financial results released by Vodafone Group on Tuesday, the book value of Vodafone's 45 per cent stake in joint venture, Vodafone Idea, has slumped to zero in November 2019. Contrast this with the fact that the book value was more than 2 billion euros in June 2018, but in May of this year, the book value had been reduced to 1.5 billion euros.
     
    In the financial results released on Tuesday, most of Vodafone's bad news came from India. This included write-downs, losses, reduced cash flows and provisions for the Supreme Court judgement.
     
    Vodafone said the remaining carrying value has been redued to nil. "As the Group has no obligation to fund VIL losses, the Group has recognised its share of estimated Vodafone Idea Limited ('VIL') losses arising from both its operating activities and those in relation to the AGR judgement to an amount that is limited to the remaining carrying value of VIL, which is therefore reduced to nil," Vodafone said. It has recognized the losses and the carrying value is reduced to nil.
     
    "If the carrying value had been high enough not to have restricted the Group's share of losses, then the recognised share of losses would have been substantially higher," it said.
     
    "The Group's recorded share of VIL's resulting losses has been restricted to the amount that reduces the Group's carrying value in VIL to nil at 30 September 2019. The Group's carrying value was 1,392 million euros at 31 March 2019 and in May 2019 the Group invested 1,410 million euros via a rights issue," it said.
     
    As per media reports, Read said in London after the financial results that Vodafone Group Plc's Indian venture could be headed for liquidation unless the government gives relief. One of the largest foreign investors in India, Vodafone has decided not to invest any more into the business.
     
    "If you don't get the remedies being suggested, the situation is critical," Read said at a press round-table in London, the reports said. "If you're not a going concern, you're moving into a liquidation scenario -- can't get any clearer than that."
     
    Vodafone wrote off the carrying value of its share in the loss-making joint venture in the half-year results after analysts indicated further impairments.
     
    Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
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    COMMENTS

    S Lokanath Pai

    4 weeks ago

    IN INDIA WE WILL HAVE ONLY JIO. NOT EVEN BSNL. TAKE IT OR LEAVE IT!

    Ramesh Poapt

    4 weeks ago

    a........................phansaa....!

    Newme

    4 weeks ago

    Consumers at the mercy of Airtel and Jio for 4G?

    IL&FS' Creditors Approve Sale of Schoolnet India to Career Point
    Debt-ridden Infrastructure Leasing & Financial Services Ltd (IL&FS) says its committee of creditors (CoC) have approved sale of its education unit Schoolnet India Ltd (erstwhile IL&FS Education & Technology Service Ltd) to Career Point Publications Pvt Ltd (CPPPL). No financial details were provided by the company. 
     
    "The financial bid of CPPPL was approved by more than 78% of IL&FS Ltd's creditors through an e-voting process that concluded on 5 November 2019," IL&FS said in a statement, adding that the process was under the resolution framework for IL&FS group submitted to the National Company Law Appellate Tribunal (NCLAT) and the Mumbai bench of National Company Law Tribunal (NCLT).
     
    The CoC represents all the financial creditors to IL&FS, the holding company for the IL&FS group. 
     
    "CPPPL made a binding offer, at an implied enterprise value, whereby it shall assume responsibility for all the debt of Schoolnet India and IL&FS Skills Development Corp Ltd (ISDC), in addition to paying a certain amount towards purchase of SIL's equity. As part of this transaction, CPPPL will also get ownership of 80% stake in ISDC held by SIL," the company says.
     
    Schoolnet India provides education-technology services to K-12 schools and students through proprietary digital content, devices, platforms and solutions. 
     
    At present, IL&FS group holds 73.70% stake in Schoolnet India, while Schoolnet India holds 80% stake in ISDC. Schoolnet India has two subsidiaries -- IL&FS Cluster Development Initiative Ltd (ICDI) and Skill Training Assessment Management Partners Ltd (STAMP).
     
    According to IL&FS, Career Point made a binding offer to purchase the businesses, including certain business debt of two other subsidiaries of SIL, like ICDI and STAMP for an additional consideration.
     
    On 7 November 2019, the board of IL&FS approved the sale in its meeting. Under the resolution framework, the company will seek approval of retired Justice DK Jain. Justice has been appointed by the NCLAT to oversee resolution process of IL&F.
     
    ISDC offers job linked vocational program to the youth. ICDI provides advisory and management services to governments, and industries for development of common infrastructure and facilities in brownfield and greenfield industrial clusters, while STAMP provides assessment solutions on a life-cycle approach: students, youth (job seekers) and working professionals.
     
    If the transaction goes through it would be a major development in the resolution process after the IL&FS completed the sale of its wind energy assets to Orix Corporation of Japan in October last.
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    User

    COMMENTS

    Ashok Maheshwari

    4 weeks ago

    well, Govt. is responsible for the mess in which the telecom industry is by not providing equal level playing field.












    Ramesh Poapt

    4 weeks ago

    deal amt/haircut???

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