THE SOCIO-ECONOMIC IMPACT OF OLA AND UBER BUSINESS MODELS

 I Wish I could be able to express how OLA and UBER are exploiting the poor drivers and owners of the cars.  After having a conversation with drivers-owners during a ride, now I am able to understand how they are struggling to make a living after lured by the money that early movers had made few years back.  

   

 Yesterday was the tipping point for me. I booked the cab at 5pm through the Uber pool from my college and rushed at the college main gate as the cab was just 200 meters from my location. but the app is showing that the cab was not moving at all. I called the driver to ensure that if he is coming or not, I realized that he was stuck in a traffic jam. he finally reached in 15 minutes and the journey begins. after riding 100 meters its seems to be an impossible ride because of the heavy traffic. it was an agonizing 2-hour journey for a mere 15 km ( a breathtaking speed of 7.5km/hr). and though it was a pool there was no other passenger joining. wasn't that supposed to be a delight for the customer? me? yes, it was because of the fare which was mere Rs 139.

      It was my conscience questioning me that how I can take the services of this hardworking man for 2 hours, who is driving me through this terrible traffic jam in his own air-conditioned comfortable car at a measly Rs 139 that might not even cover its fuel cost, time and effort, loan repayment for the car is separate. This same ride in auto-rickshaw would have cost me Rs.260 at a minimum.

   

         

  I have had many discussions like this with many drivers that, how difficult their life is. About how they are stuck with the repayment of RS.25000 every month, the Fuel cost, efforts and pain in the leg, elbow, and back and how minimal they make at the end of the month. 

    

   Many drivers had comitted suicides when they are not able to repay their loan amount. many of the drivers have given their home, wife's jewellery as a mortgage to the bank and still they have to fear that the bank will take their cars and will send them to jail. The question here is that if the bank will take their car how they will earn their livelihood and how they will feed their children. 

 There are only three parties involve when you book a cab through ola/uber, the company, passenger, and the driver with the fares being so low. It is easily understood who is being exploited - the poorest of them and the exploitation is not limited to labor, the other two are getting financially benefits at the expense of the poorest one.