Coronavirus Impact: Uber, Ola Rides Dip By 30% In India; Upto 50% Pool, Share Rides Cancelled
With the outbreak of coronavirus, the reports of positive cases in India stand at almost 80.
Though it is less in global comparison, many local startups have started to experience a sharp decline in their daily business.
According to the sources, Ride-hailing apps Uber and Ola are amongst those whose daily business has hit hard instantly.
How Is Ola & Uber Affected?
One of the three sources on condition of anonymity said, “Uber’s cab offering has been witnessing a decline of 25-30% in daily rides from the past few days,”.
“Its pool service has hit severely with a reduction of about 40-45% in the past two days as people are avoiding sharing cabs because of the threat of possible infection,” he added.
“Ola’s daily number of cab rides has also fallen by about 30% as compared to a normal business day,” sources said.
According to him “After Bengaluru, Delhi (NCR) and Mumbai are two most affected cities for Ola.”
Also, the number of rides under Ola Share (its pool service) has been experiencing consistent downfall since Monday.
He added, “The daily volume on its pool service has fallen by almost 30-35%,”.
Basically, 1 large chunk of repeat users for Uber and Ola comprise of office goers, business owners and students. Hence, it’s not surprising to see their daily volume coming down.
What About The Other Startups?
Currently, many corporate offices and scaled startups have been opting to work from home to avoid mass gathering.
Yesterday only, companies like Meesho, Unacademy, Bounce, Mobikwik and a few others in Bengaluru mentioned they would allow their employees to work from home.
Further, Paytm had asked its employees across Gurugram and Noida to work from home until further notice after one of the employees was tested positive for coronavirus.
According to sources, the number of positive cases of the coronavirus is expected to increase in the coming weeks, the overall volume of Ola and Uber rides are expected to dip further.
While Ola is silent about this development.
Today, the Economic Times has also reported that both Uber and Ola have seen rides drop by at least one third as companies advise employees to work from home due to coronavirus scare.