Ola, Uber Drivers Logging Out From App & Forging Direct Deal With Users; Reason For Shortage Of Drivers?

Many of us have noticed an abrupt shortage in the Ola and Uber rides, especially in Mumbai and Bengaluru. 

People have started sharing their displease and disappointment all over the internet through various social media platforms. 

The reason behind this abrupt shortage is the unrest among the drivers due to the incentives being not so great anymore.

For more details about the dwindling popularity of Uber and Ola among drivers, read on. 

Uber Ola Drivers Quit: Incentives Go Down From 59% To 8%

As per Redseer, a leading management consulting company, the incentives of the drivers of the transport company were at 59 per cent of the gross booking value three years ago. This is a primary factor that drivers were attracted to the companies in the first place.

However, the companies have sunk to a lowly 8 per cent of the gross booking value, and that is what has driven drivers away from Ola and Uber. 

Also, some of these drivers bought new cars by loaning money, and paying off these loans is no longer as easy as it was before. There have been reports that the average number of rides that they took on a daily basis had gone up considerably, the rides that were around 1 million in 2016 went up to 2 million in 2019. In spite of this hike in rides, the drivers have found it difficult to pay off their loans. This also made them drive away to other professions where the income was steady and not so flexible. 

18000 Cars Of Drivers With Loans Seized: Reason Behind Shortage Of Ola And Uber Drivers

What’s even more distressing is that because of failure to repay the loans, some cars were also acquired by those who provided financial support.

Tanveer Pasha, head of the Ola Uber Driver Association in Bengaluru revealed that as much as 18000 cars were seized in the last one year and that is the reason behind the shortage of Uber and Ola drivers for Bengaluru and Mumbai.

A driver going through similar hardships said, “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.”

Drivers Making Their Own Deals With Passengers

This has even led to the drivers making their own deals with the customers as well. As per reports, drivers strike their own deals with the customers whose rides get cancelled and who are ready to agree to the deals.

What happens here is that even though the app shows that the ride is cancelled, passengers still go with the driver and pay them the amount that they ask for. This has been vastly observed in Delhi and Noida.

An Ola bike driver in Noida asked his customer to cancel the ride and instead pay him the full amount. He explained, “In a bike ride worth Rs 20, the company is taking as much as Rs 7… what am I supposed to earn?”

With thousands of people depending on Uber and Ola in this day and age, drivers quitting the companies doesn’t sound well for the business at all. Given the rate at which displease spreads around on the social media, Uber and Ola will probably be facing huge discontentment, and soon. 

We hope Uber and Ola fix these problems soon. Share your opinions with us in the comments section right below.