Why Auto-Taxi Drivers are Angry at Uber and Ola, but Favor Rapido

Over 15 auto and taxi unions are holding a two-day strike on August 22 and 23 to protest ride aggregators like Uber and Ola.

Why Auto-Taxi Drivers are Angry at Uber and Ola, but Favor Rapido
Source: The Mint Scoop

If you're living in Delhi or the NCR (National Capital Region) and finding it hard to book an Ola or Uber today, you are not alone. Many people are facing the same issue because of a strike by auto and taxi unions.

Why Are Auto and Taxi Drivers on Strike?

Over 15 auto and taxi unions in Delhi have come together to protest companies like Ola and Uber. They have announced a two-day strike on August 22 and 23. This strike is causing problems for people who usually rely on these app-based cab services for their daily commute.

This Isn’t the First Time

This is not the first time auto and taxi drivers have protested companies like Ola and Uber. These companies are known for taking large commissions from drivers, which many drivers feel is unfair.

  • Past Strikes: In February 2023, drivers in Guwahati went on strike, which made it hard for people to travel. In October 2018, drivers in Pune also protested Ola, Uber, Swiggy, and Zomato.

What Do the Unions Want?

The unions have several demands. Kishan Verma, president of the Delhi Auto Taxi Transport Congress Union, says the strike is because of high commissions and unethical activities by private bike taxi drivers, such as involvement in illegal activities. The unions want:

  • Ban on App-Based Services: The unions are calling for a ban on app-based cab services like Ola and Uber.
  • Government-Backed Services: They are demanding the creation of a government-backed alternative to these private companies.

Why Are Drivers Angry?

Drivers have several complaints about Ola and Uber:

  • High Commissions: Drivers claim these companies take a big cut from their earnings. For example, if a customer pays Rs 200 for a ride, the driver may only receive Rs 100 to Rs 110.
  • Unreimbursed Costs: Drivers also must pay for fuel and vehicle maintenance. Sometimes, when customers refuse to pay, the companies do not compensate the drivers.
  • Misleading Commission Rates: While companies claim to charge around 10% commission, drivers say the actual rate is closer to 40%.

What About Rapido?

Rapido is a newer service that started competing with Ola and Uber in December 2023. Unlike Ola and Uber, Rapido uses a subscription model instead of charging a commission on every ride. Drivers pay a set fee upfront and can earn up to a certain amount before needing to pay again. This model has been better received by drivers because it reduces their costs.

Safety Concerns with Private Vehicles

Whether it's Ola, Uber, or Rapido, unions also raise concerns about private vehicles (especially bikes) used for these services. There have been safety issues, particularly for women passengers. There are also allegations that some drivers use their private vehicles for illegal activities.

Source: India Today

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