Uber-Ola Mumbai strike puts commuters in limbo

Commuters in Mumbai were left stranded as the strike by the drivers of ride-hailing service providers Uber and Ola continued for a second straight day on Wednesday.

Some of the drivers' demands include a fixed base price similar to the one charged by local cabs (kali-peeli), reduction in the commission rates and a ban on bike taxis.

The protest was concentrated in the Navi Mumbai area, where commuters were forcibly asked to de-board from the cabs they were in. Many of the cab drivers that Business Standard spoke to confirmed this development and also added that they were declining rides in areas where there was a problem.

While booking cabs on Uber and Ola was difficult, Rapido managed to operate with a significant number of cabs from the kaali-peeli segment.

"Uber and Ola take a lot of commission. On the other hand, Rapido does not. Also when we finish the quota as per the subscription, Rapido allows us to take booking," said a Rapido driver, who did not wish to be named.

The base fare of a kali-peeli cab in Mumbai is ₹31 for a distance of 1.5 km and after which ₹20.6 per km is charged.

In case of the cab aggregators like Ola and Uber, the base fare depends on the cab category, like the model of the car and the category it fits in.

However, industry sources confirmed that the upcoming motor vehicles aggregator guidelines (MVAG) may not favour fixed rates for these cabs. 

"The MVAG guidelines that are expected to be issued in Mumbai give a cap of 0.5 per cent to 1.5 per cent over the base fare. This is also inclusive of surge. The protesting drivers want fixed fare, but that will not go in favour of the cab drivers. Also, there is an understanding that the government favours flexible fares," said a mobility expert.

One of the reasons for the government to not favour fixed rates is that drivers may prefer only certain locations. Dynamic pricing works for both the driver and the passenger, said industry players.

The other issue is the continued plying of bike taxis even as they have been asked to stop by the Maharashtra government.

"While some of the players stopped bike taxis, some continued. They are using gray-balling techniques, which means they will use selective routing," said another source.

-- Business Standard