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App-based cab services: Making money hand over fist

Updated: November 18th, 2019, 15:30 IST
in Metro
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In spite of reports suggesting fall in incentives for cab drivers of app-based services such as Ola and Uber, demand for the same has observed a steady growth in the Capital city.

As per the figures available from Redsheer, a consulting firm, drivers’ incentives from percentage of gross booking has fallen from 60% in 2015 to just about 8% in 2018. The plummet in profits has triggered a nationwide crisis for cab owners with financers seizing their vehicles for failing to repay the loans.

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However, irrespective of the lower incentives, denizens of the Capital city have taken a particular interest in Ola and Uber. Although no official data was available, sources at these private cab services here say that about 3,500 vehicles are registered with these companies and about 500-600 more cabs are being added every year.

“The rise is basically due to lack of sufficient public transport in the city here. With advent of e-services coupled with rapid urbanisation the demand for quick locomotion will see more of app-based services coming into play,” explained Priyaranjan Mohapatra, a former urban planner here.

While Ola and Uber have been prime service providers for cabs and taxis, riders’ demand for quicker transport services has also brought in two-wheelers into the fray. Dodging the congestions during rush hours, online bike taxis provided by Ola and Rapido, have become the most preferred mode of transportation for individual riders.

Moreover, the demand for these app-based services has also created opportunity of an alternative employment with many jumping on the bandwagon and making money hand over fist. While many travel agencies have put their vehicles into cabs and taxi services, city youth have particularly taken bike services as part time jobs catering to denizens across the city.

“I work only in the evenings when it’s peak rush hours and I get some time off from my studies. I earn somewhat between `15,000 to `20,000 a month. However, if one works in this full time he/she may earn close to `25,000,” said Piyush Behera who is working with Rapido here.

Tags: Cab serviceOlaRapidoUber
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