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Old 20th October 2015, 23:59   #16
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Default Re: Ola: 7.5 lakh rides per day!

Originally Posted by phamilyman View Post
I think this is being set up for a perfect bubble rupture soon.

A large number of bookings are for the hatchback version:
  • Customer pays Rs 7/8 per km and often as low as Rs 50 for upto 4km.
  • Cabbie gets a minimum of Rs 235/10km or 14 Rs/km (source: recent driver conversation)
  • On top of it there are the incentives - upto Rs 3000/day or thereabouts.
Once the incentives end and the rates go to a long term sustainable rate of Rs 18-20/km (something many cabbies say), how many lakh rides per day will happen is anyone's guess.

let's not forget - According to the sources, Uber was losing at least Rs 500 per ride on an average, and Ola about Rs 420 per ride, including the incentives to passengers. (courtesy discounts and 3000 rs per day incentive)

Of course the early adopters would have emancipated themselves for good, moving from employees / daily hirers + wage earners to car/business owners but the absolutely last ones (or the spendthrift ones) may be caught in a debt trap of sorts.
While many cabbies would say 18-20 per km is the break even rate, they were making obscene profits at such levels.

A ride from the railway station to my home uses to cost me 500-600( for hatchback or sedan ) for a distance of 20 KM. The same costs 250 right now.

I believe the prices are here to stay. There was simply too much easy money to be made before. The market has simply become more competitive.

Don't forget that the apps have cutdown on dead miles and wasted time. People take a lot more rides because of the convenience and low prices. I used to cringe and think twice while taking a cab before and frankly preferred taking the bus or other arrangements.

In Chennai, there is no taxi system meaning that the drivers were dependent on aggregators like Fast Track. I would beg t the drivers would easily get 3 times the number rides with these apps than with Fast Track with much fewer deadmiles and wasted time.
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Old 21st October 2015, 00:25   #17
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Default Re: Ola: 7.5 lakh rides per day!

In Dilli it is the opposite, UBER Go & X surge pricing is 2.9X even 3.1X and Ola max I have seen is 1.2

Uber Black turns out cheaper during the surge

Originally Posted by Ragavsr View Post
What is even more sickening is that Ola raises the surge price to 2X,3X all the time during theevenings where as with Uber its quite rare and even if there is a surge price its usually 1.2X or 1.4 X.
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