Over 15 auto and taxi unions have united in protest against consumer ride aggregators like Uber and Ola and announced a two-day strike on August 22 and 23.
In short
- Ola, Uber auto-taxi drivers have announced strike on 22-23 August
- They are demanding a ban on app-based cabs and seeking alternative arrangements.
- This is because drivers claim that Ola and Uber take at least 40% of the fare as commission.
If you are living in Delhi or NCR and facing trouble in booking Ola or Uber, you are not alone.
In protest against these companies, more than 15 auto and taxi unions have united and announced a two-day strike on August 22 and 23.
The strike, organised by auto and taxi driver unions, could cause significant transportation problems for people who normally rely on these third-party ride-hailing services.
not the first time
- This is not the first time unions have protested against third-party apps like Ola and Uber, which are notorious for charging exorbitant commissions from drivers.
- Drivers have repeatedly protested against the unfair practices of these companies.
- For example, in February 2023, drivers of Ola, Uber, and other services went on strike in Guwahati, disrupting the daily commute of many people.
- Similarly, in October 2018, drivers of Uber, Ola, Swiggy, and Zomato in Pune went on strike to draw attention to their grievances, though with limited success.
What are the unions demanding?
Kishan Verma, president of the Delhi Auto Taxi Transport Congress Union, said the protest was being sparked by the high commission charged to private Ola and Uber bike taxi drivers and allegations of unethical activities against them, including involvement in liquor, narcotics and smuggling trade.
Verma said, “We have been writing to governments and departments for many years about companies like Ola and Uber, but no one listens to us. These companies present their side and the government presents its side, but all this is a game of donations, in which the government is also involved. We demand an end to this game.” IANS,
The union is demanding a ban on app-based cab services and the creation of a government-backed alternative.
‘Ola and Uber take 40 per cent of our income’
india today Spoke to several Ola, Uber and Rapido drivers, and they claimed that both Ola and Uber charge very high commissions excluding car maintenance and fuel costs.
“For a ride of Rs 200, I get only Rs 110 or 100,” says Shankar Das*, an Ola, Uber and Rapido auto driver in Delhi. Shankar, who has been driving an auto for nearly 20 years, moved to online platforms four years ago but faced several problems with these companies.
He also said that there have been many times when passengers refuse to pay and the companies do not refund the money to the drivers. He says, “The companies tell me that it is my fault for not fighting with the passenger to get the money.”
“Though these companies claim they charge only 10 per cent commission, the actual commission is much higher — around 40 per cent of what we earn from every ride,” says Rajesh Agarwal*, another auto driver from Noida in Delhi NCR.
Rajesh says, “We also have to pay for petrol and CNG, so we are not left with much after taking commission from the company.” Apart from this, many cab drivers have to pay EMIs on their cab loans.
Satyajeet Gupta*, another cab driver from Delhi, agrees. He claims that commissions for cab taxis are unusually high. He gives an example: for every Rs 500 ride, the company charges around Rs 210-250, which is 45-50 per cent of the total fare.
Why not Rapido?
In December 2023, Rapido launched its ‘Rapido Cabs’ service to compete with Ola and Uber. Starting with around 1,20,000 cabs in Delhi-NCR, Hyderabad and Bengaluru, the service aims to expand to 35 cities by September 2024.
Instead of charging a commission on every ride, Rapido introduced a subscription-based model. In February 2024, this model was extended to include auto rides and it seems that this is not causing so much trouble to drivers.
Satyajeet explains that the concept is simple; he ‘recharges’ his Rapido account with Rs 800 (prices may vary by city), and he can earn up to Rs 10,000 from this recharge through his trips.
However, if his earnings exceed Rs 10,000 by even Rs 1, his ID gets blocked until he recharges again. Other drivers agree that the ‘charges’ are relatively less compared to Ola and Uber.
‘Private vehicles are still an issue’
Whether it is Ola, Uber or Rapido, unions argue that personal vehicles (this applies to bikes too) are a serious problem that needs to be addressed. From time to time, safety concerns have also been raised, especially for women using these bike taxis, where riders often use their personal vehicles for the service.
“Private Ola and Uber taxis are involved in smuggling, and alcohol and drugs are also traded,” says Kishan.
Rajesh agrees and says, “There is no safety concern in these private vehicles. If an accident occurs, the company will not take responsibility – not even for the passengers.”
(*Names have been changed as requested)
