Mass Exodus Of Drivers From Ola/Uber, 25% Left In March Quarter; UberPass Launched For Getting New Customers
There is some bad news for online taxi aggregators in India. As per latest reports coming in from RedSeer Management Consulting, both Ola and Uber lost one-fourth or 25% of cabs associated with them, in the March quarter (January – March 2017)
This means that drivers working with Uber and Ola are not happy with the results, and either they have gone back to driving their own taxis independently, or they have reverted to their old profession.
Why Are Drivers Leaving Uber/Ola?
RedSeer report observed that a total number of vehicles associated with either Ola or Uber during October to December 2016 was 5,00,000, which was the highest in the last 12 months.
After this peak, the numbers gradually decreased, and by the time March ended, only 3,80,000 vehicles were left with Ola and Uber; which means 1,20,000 cabs delinked themselves with Ola and Uber, in a matter of three months.
In a statement, Uber has denied the findings of the report, and have claimed that 2,40,000 drivers are right now working with them.
Their statement said, “The future of our business depends on making driving with Uber the most attractive choice.”, adding, “We currently have 240,000 active driver partners (who would have taken at least one ride in a week) and are seeing new sign-ups every day. We are not seeing any significant churn,”
On the other hand, the report is blaming fewer incentives and fewer revenues for this massive exodus of drivers from Oa/Uber.
The report observed, “This trend (Exodus) was precipitated largely by continuously dropping incentives and driver incomes. Drivers who left the online platforms either shifted into other (offline) driving jobs or changed professions entirely.”
UberPass Launched In 4 Indian Cities
Meanwhile, in order to attract new customers, and to provide more reasons for the riders to opt their services, Uber has launched their new program called UberPass.
From the details available, it seems like a copy of Ola’s OlaPass, which ensures flat ride tariffs for their pool passengers. Under OlaPass, once you buy a pass, then there is no price-surge for share trips, and the tariffs are fixed.
With UberPass, the facilities of fixed fare shall be provided to both UberPool and UberGo/UberX passengers.
As of now, the service has been launched in 4 Indian cities: Delhi, Mumbai, Chennai, and Kolkata (although I just booked an Uber, 30 minutes back, and couldn’t find the option)
A few days back, Uber had launched their UberVIP program, for selected customers.
Will such offers and programs help Uber to instil confidence among the drivers? We will keep you updated.