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Uber Drivers On Strike As They're Making Almost Nothing


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Uber Drivers On Strike As They're Making Almost Nothing: Foreign Media

About 1.5 million Indians drive for Uber, Ola and other ride-sharing companies.

On Monday, many of them refused to work. Thousands of workers participated in the countrywide strike, crippling traffic and creating massive headaches for commuters.

The drivers say they have no other choice: They're simply not making enough money to survive. Many can't even afford to make car payments.

"Drivers are in huge debt," said Sanjay Naik, president of the Maharashtra Navnirman Sena political party's transportation union, which organized the strike.

It wasn't always this way. When ride-sharing companies such as Uber first entered the Indian market in 2013, they offered great pay. Drivers told the Times of India that they'd been promised monthly incomes of about $1,500. (Per capita income in the country hovered around $1,600 a year in 2016, according to the World Bank.)

 


It was so appealing that some salaried workers quit their jobs to drive. Farmers sold their land and bought cars instead, often on credit.

But the promised rewards never materialized. The huge influx of willing drivers meant ride-sharing companies didn't have to compete so hard to woo drivers. At the beginning, drivers said companies took a 10 percent commission from every ride. Now, drivers say, they're forced to give back up to 30 percent.

They are also unable to set their own prices, meaning their fare earnings suffer when Uber or Ola (a locally grown competitor) offer promotions or cut rates.

"We are not able to meet our needs from Ola and Uber," driver Tanveer Pasha told Quartz. Pasha said he makes about $10 a day, and nearly all of that money goes to repaying car loans. "I can't live on the remaining Rs200 [$3] and run a family," he said.

The workers say they'll strike until Uber and Ola commit to paying workers their promised $1,500 a month. They're also calling on the companies to stop low fare booking. And they want some drivers, dropped because of low ratings, to be rehired.

Uber did not return an email asking for comment. Ola told news outlets that it would wait to see how the strike progressed before weighing in. Last year, ride sharing companies made $371 million in revenue in India. Experts predict that that number will balloon to $761 million in the country by 2022.

But it's not easy. As The New York Times documented last year, there are several challenges particular to India that Uber and others have had to overcome. "Throughout the country, the roads tend to be terrible; clogged with traffic, potholes and pedestrians, marked by ever-shifting routes and a freewheeling interpretation of automotive rules that is almost balletic in its lawlessness," the Times explained. "India's cellular networks can be spotty and slow, and banking, credit cards and other financial mainstays cannot be taken for granted. . . . Not only are many of Uber's drivers here unfamiliar with smartphones, some are illiterate. Often, drivers and riders don't speak the same language."

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8 minutes ago, aakathaai said:

Ee drivers selfemployed or salaried?

Salaried kadu. 

Just aroju rides enni vastey commission poga migatadi migultadi

 

 

Kothallo okkokadu 1 lakh paine earn chesaru... Ippudu rakapoyesariki strike

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8 minutes ago, aakathaai said:

Ee drivers selfemployed or salaried?

they drive their own cars for Uber network ... ante veellu service provide chestaaru ... customers pay chestharu ... madyalo Uber/Ola gallu 30-40% nokkutaaru brokerage

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1 minute ago, bollipappu said:

they drive their own cars for Uber network ... ante veellu service provide chestaaru ... customers pay chestharu ... madyalo Uber/Ola gallu 30-40% nokkutaaru brokerage

ippudu ola vallu own cars naduputunnaru..avi stop cheyyalani kuda asking

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7 minutes ago, bollipappu said:

they drive their own cars for Uber network ... ante veellu service provide chestaaru ... customers pay chestharu ... madyalo Uber/Ola gallu 30-40% nokkutaaru brokerage

Rates fix chesedi uber vaalla

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19 minutes ago, bollipappu said:

they drive their own cars for Uber network ... ante veellu service provide chestaaru ... customers pay chestharu ... madyalo Uber/Ola gallu 30-40% nokkutaaru brokerage

20% malli andhulo 5% GST kuda undi

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8 minutes ago, bollipappu said:

yea anthe kadaa ... we pay to Uber and they pay to drivers(actualll ga owners :( )

Idi maree daarunam 50-50 typelo undaali ilaantivi mottham maname mingeyyali ane type la unnaru

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6 hours ago, aakathaai said:

Idi maree daarunam 50-50 typelo undaali ilaantivi mottham maname mingeyyali ane type la unnaru

akkada 80-20 undi man

kani driver cum owners company ne extra pay cheyali free ga business lekapoiana antunaru

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This is expected to happen sooner than later. Uber and Ola gave daily bonuses , sometimes as high as 5,500 Rs per day (not kidding) if they meet certain criteria (like 20 rides a day or 2,500Rs worth of rides a day). They did so as to keep the drivers to work on them and not work on both Ola and Uber at the same time (you can't do enough rides on both networks in a day to quality for bonus). Last time when I was in India, I used them a lot (3 or 4 rides a day) and drivers were taking car loans which they can only afford if they make 60 to 70k a month. 

Now, both Uber and Ola stopped giving bonuses and also increased the % share they take. When you earn only 3K (at best) and give 30% commission back, after petrol they are left with nothing. 

 

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