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The impact of nationwide strike call by Uber and Ola drivers on Monday is likely to be limited and localised to Maharashtra, particularly Mumbai.
Drivers of Ola and Uber – under the aegis of several drivers associations — have threatened to go on strike with effect from Sunday midnight across major cities, including Delhi, Mumbai, Noida, Bengaluru.
The office bearer of a transport association told BusinessLine on condition of anonymity that the impact is likely to be limited to Mumbai, and not much impact is expected in the North, or in Hyderabad or Chennai. However, the real impact on commuters in different cities will be clear from Monday onwards.
Their demands include higher benefits for drivers, higher fares, among others. The call is for a nationwide strike, although the Delhi High Court on Saturday has issued a restraining order to two drivers associations here asking them not to restrain services of Ola and Uber in the Capital, according to PTI. In Delhi, there were certain associations that were not part of the strike.
Currently, India accounts for over 10 per cent of Uber’s global trips. Uber sees its driver-partners, which is at about 3 lakh strong now in India, growing 5-10x in the next three years.
Ola mobile app allows users across over 110 cities to connect with over 10,00,000 driver-partners across cabs, auto-rickshaws, and taxis.
An executive of one of the aggregator companies, requesting anonymity, told BusinessLine that there is no official communication yet from any of the drivers about a strike. Another industry executive dubbed the strike-call a politically motivated move.
“Ola and Uber had given big assurances to the drivers, but today they are unable to cover their costs. They have invested ₹5-7 lakh, and were expecting to make ₹1.5 lakh a month but are unable to even make half of this, owing to the mismanagement by these companies," Sanjay Naik of Maharashtra Navnirman Vahatuk Sena, who is organising the strike, told PTI.
Naik further alleged that these taxi-hailing companies are giving first priority to company-owned cars (owned by car aggregators directly) rather than driver-owned vehicles.
Long-term solution
However, long-term issues remain regarding sustainability of low fares, while ensuring good margins for drivers as well as the aggregator companies.
This is evident from the fact that this is not the first such strike by the drivers in India, nor is it the first such strike globally.
Moreover, a research report earlier this month from MIT that pointed towards low earnings of Uber and Lyft drivers drew flak from Uber resulting in the MIT researcher reconduct the study, and up the earnings.
Ola’s response
“We have been informed by the Mumbai Police that they have proactively taken all the necessary steps to ensure the safety of commuters during their cab rides in the city...,” according to Ola’s spokesperson.
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