Uber, Ola Refuse To Use Indian Railways Parking Slots: Shocking Reason Why!

Uber, Ola Refuse To Use Indian Railways Parking Slots
Uber, Ola Refuse To Use Indian Railways Parking Slots

Ola and Uber, two of the leading cab service providers of India have refused to use the parking slots available at the railway stations of India.

Indian Railways, in an attempt to increase their revenue, tried to continue their arrangement of offering designated parking spaces for Ola and Uber cabs, only to get denied. 

Until now, the two major cab aggregators have made up for a large chunk of the revenue generated by the Indian Railways, but not anymore.

To find out the whole scoop, read on!

Uber And Ola Will Not Bid For Parking Spots At Railway Stations 

In major cities like Mumbai, Delhi and Bengaluru, cab aggregators viz. Ola and Uber pulled in a lot of business for themselves by setting up their kiosks and bidding for parking spots outside the railway stations.

But not anymore. 

As per reports, the cab service companies are of the opinion that the contract offered to them is not feasible. In fact, both Uber and Ola have already quitted the railway station of Bengaluru, and removed their kiosks from the railway stations of New Delhi as well. 

A government official said that there have been multiple attempts to keep the partnership alive, but to no avail. He said that the companies are not sure if they want to continue with the partnership with the Indian Railways. 

Why Are Uber And Ola Not Continuing With The Partnership With Indian Railways?

There are multiple reasons behind this step taken by Uber and Ola, one of which is that the returns that they are getting don’t quite live up to the expectations. Both the aggregators believe that the Rs. 7 crore for which the contract was awarded, is not quite feasible. 

The government official revealed, “In most of these stations, the companies had gone for higher bids. For example, in Bengaluru where the bid is INR 7 Cr, these companies are finding it difficult to find to run their operations.”

Additionally, the passengers prefer the prepaid auto-rickshaws and prepaid taxis, which resulted in the demand for Ola and Uber to diminish. 

A senior-level officer of one of the cab providers also revealed, “We face a lot of logistical challenges like cabs getting stuck in railway parking lots for hours and our driver-partners complaining of tussles with prepaid taxi and auto operators.”

In addition to that, cab drivers of Ola and Uber are not very keen on waiting around for passengers either. They prefer being mobile for finding passengers. 

We’ll keep you informed as we get more updates!

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