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Old 1st May 2017, 14:55   #31
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Default Re: Car loans become difficult for Ola drivers

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Originally Posted by ant_vas View Post
Every second disgruntled uber/Ola driver in bangalore/hyderabad keeps saying: wait till reliance launches their app based cab service. Where do they get their news from, I wonder
Well, there are some rumours flying around so you never know

http://www.indiasamvad.co.in/busines...mpetitor-15713

http://www.team-bhp.com/forum/street...is-mumbai.html (Rumour: Reliance to buy all black & yellow taxis of Mumbai)
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Old 2nd May 2017, 13:17   #32
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Default Re: Car loans become difficult for Ola drivers

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Originally Posted by Nissan1180 View Post
I recently bought a Xcent taxi because I wanted to test how this business works.
This is the 25th day of the taxi strike in Ahmedabad. Yes. For the last 25 days, Ola and Uber drivers are on strike and cab availability is very limited.
I hope there's some regulatory decision about strikes, fares and safety of the drivers for these companies soon. It is sad that Uber and Ola both don't care about the driver at all- they simply send a message to call the police in case there's a roadblock set up by striking cab drivers.
Although I have never travelled in a Uber/Ola cab, have always wondered what the good old taxiwalla will do if these crazy discounted fares sustain.Good that the bubble has burst
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Old 2nd May 2017, 17:08   #33
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Default Re: Car loans become difficult for Ola drivers

I am not really sure how the fares are Rs 6/- per KM. If you look at your invoices, and divide the fare by the total number of KMs travelled, it easily works out to around Rs 12/- to Rs 14/- per KM. I can attribute it to two factors:

1. We are charged for every minute we are in the cab. If we assume an average speed of 30 km/hr in the city, we cover 1 km every 2 minutes. This implies an added charge of Rs 2 per km (I think it is Rs 1/- per minute), in addition to the per km charge we pay.

2. The base charge also serves to increase the overall rate per km we pay

Of course, the rates are competitive, and they have solved a very important transportation problem. However, the salary expectations need to see correction very soon. These expectations set by Uber/Ola in the minds of drivers are definitely not sustainable.
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Old 2nd May 2017, 19:52   #34
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Default Re: Car loans become difficult for Ola drivers

Also, lately I have noticed that Uber no longer provides a proper breakup of the charge.

So when we book the cab, it shows how much it will cost for the ride, and then the final charge is exactly that, and no breakup of charge for kms, time etc is provided.
I stopped used Uber for this reason. Because it is no longer cheaper than the local Taxi/Rickshaws. I now use it very occasionally, when for example, the rickshaw guys ask extra.

But what I really liked about this Ola/Uber evolution is that it broke the monopolistic attitude of the rickshaw/taxi guys and their union. There was a time when I used to ask the rick guy where he would like to go, rather than the other way round.
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Old 3rd May 2017, 16:40   #35
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Default Re: Car loans become difficult for Ola drivers

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Originally Posted by vinit.merchant View Post
Also, lately I have noticed that Uber no longer provides a proper breakup of the charge.

So when we book the cab, it shows how much it will cost for the ride, and then the final charge is exactly that, and no breakup of charge for kms, time etc is provided.
I stopped used Uber for this reason. Because it is no longer cheaper than the local Taxi/Rickshaws. I now use it very occasionally, when for example, the rickshaw guys ask extra.

But what I really liked about this Ola/Uber evolution is that it broke the monopolistic attitude of the rickshaw/taxi guys and their union. There was a time when I used to ask the rick guy where he would like to go, rather than the other way round.
+1 To that. The UBER charges in Mumbai as well are skyrocketing. A normal UBER GO 20km journey during peak hours which would cost approx 300-350 INR has shot up to 450-500 INR.

Regards
Dieseltuned

Last edited by Dieseltuned : 3rd May 2017 at 16:41. Reason: added a point
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Old 4th May 2017, 12:15   #36
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Default Re: Car loans become difficult for Ola drivers

It is sad to hear about this predicament for the Ola/Uber drivers.
I for one, like many of us, was happy to get a professional service at difficult to believe fares. I had often wondered how these companies could sustain these low fares. Now, the truth comes to light.

I hope that Ola and Uber can come up with a more sustainable pricing for the customers and provide fair incentives for the drivers. More entrants, like Reliance, may also help in keeping this excellent service for us members of the public going. Maybe even expand into smaller towns and tier 2 cities.

I was good not to have to hustle and argue with arrogant autorickshaw and taxi drivers. Wishing that it all doesn't fall apart and leave us at the mercy of the old-style taxis and Autos.

Cheerio!
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Old 4th May 2017, 12:28   #37
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Default

Read this news article.

https://www.vccircle.com/ola-raises-...tan-tata-fund/

Looses are down from eight times the revenue to three times. You are being subsidized by venture money.

The current rates are unsustainable. Customers can take benefit for now.

Fares will eventually rise.

But quality and ease of service needs to be balanced vis fares. Having used both Uber and OLA reasonably extensively within Delhi NCR. I for one would be ready to pay 2x to 3x of current ridiculously low non peak fares.
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Old 4th May 2017, 18:40   #38
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Default Re: Car loans become difficult for Ola drivers

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Originally Posted by Dieseltuned View Post
which would cost approx 300-350 INR has shot up to 450-500 INR.
Things are no different in Bengaluru. A 35 km journey from Rajajinagar to Meenakshi Mall on Bannerghatta road now costs almost double the amount charged six months ago. We normally take a Ola/Uber to go there. But this time, looking at the cost estimate, that too on a Sunday (minimal traffic), I was shocked out of my wits. The days of cheap cab rides seem to be getting over gradually.
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Old 4th May 2017, 23:00   #39
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Default Re: Car loans become difficult for Ola drivers

Nice topic and an actual point of discussion across the different stakeholders involved in the whole cab business, right from the banks who fund the drivers for the cab to the cab service providers and most of all the end users.

With regards to this topic, i recalls me a discussion that i had with an ola cab driver in feb'17 while returning back from the airport in Hyd. It was Monday at around 12:30 am and the driver seemed to be sleepy, so i decided to speak to him and we fell upon this very same discussion. He didnt get into the specifics with regards to the numerical calculations but he did walk me through things.
He had been with Ola for like 7 months as of Feb and was currently earning like 35-40k a month. This was down from around 50-52k that he used to earn when he started driving with Ola. The reason for this was an increased fee that was being charge by Ola and the minimum km requirement, which was recently increased by the cab service provider, to be considered as a ride. This meant that they did have to concentrate on longer rides. Now, with a typical workday of 13 hours, their income was around 1k per day. Now, in order to streach and reach the upper limit of 40k, they had to work for 17-18 hours to take the income upto 2k per day. Such 17-18 hour days were like 2 or 3 times a week, totaling to around 8-9 a month which helped them touch the income of 40k. The only problem is that by working 18 hours a day, their body takes a toll for the remaining days when they do their normal hours, which affects their productivity. As a result, what they prefer is to ride a longer airport trip immediately post midnight, so that gets counted in the next day and also contributes towards their 18 hour workday. This is so that they can meet their requirements of running a home, paying their dues and also trying to save something for the rainy day but what it does is what i experienced, a tired and sleepy driver, who was actually trying his best to do his duty towards his job and family.

I actually empathise towards this situation of his because, technically, even office going guys have typical workdays like this, where they do have to stretch on some days in a week but the thing is that we do have a day or two off on weekends, which lets us get back on a Monday with a relaxed mind and helps us work for years and years but these cab drivers have to this schedule 7 days a week without a break. A break would only mean that they dont touch that target, which has severe downstream effects.
During the time when consumers benefited in the earlier days, with cheaper service, it was a win win for everyone but as this market settles down, there are changes happening and also expected in the coming times. We might not get cheaper rides as we used to get earlier or some cab drivers, who are not able to sustain this schedule might opt out of it and join the old style cab agencies, who provide day packages and airport drops.

The banks, in their own right to prevent the deteriorating asset on their book would try to not take up the agenda of issuing new loans. They played along with the industry and the boom phase to balloon their books and increase their revenue but that said, they too are into playing the waiting game, just like VC's are doing too.

The whole scenario is like a pond, which was unattended too for years. No one looked upon it for years and suddenly someone found the right way to use it to their advantage. Suddenly, everyone wanted a piece of the opportunity and then the whole pond got muddled and no one looked at what was going on actually but played along with the tune. Now when things are settling and the water is clearing, everyone wants to back off and play the waiting game to see the direction how the excess flow settles. This is not the first industry to see it and not will it be the last to see it but because it directly touches the end users across all groups of life, it will be a point of interest for everyone.
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Old 5th May 2017, 12:22   #40
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Default Re: Car loans become difficult for Ola drivers

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Originally Posted by vinit.merchant View Post
Also, lately I have noticed that Uber no longer provides a proper breakup of the charge.

So when we book the cab, it shows how much it will cost for the ride, and then the final charge is exactly that, and no breakup of charge for kms, time etc is provided.
I stopped used Uber for this reason.
Quote:
Originally Posted by Dieseltuned View Post
+1 To that. The UBER charges in Mumbai as well are skyrocketing. A normal UBER GO 20km journey during peak hours which would cost approx 300-350 INR has shot up to 450-500 INR.
+1 to the above. Also most of the times these upfront fares (that is what they call it) are much more than the distance/time you eventually end up riding. I have observed the difference to be as high as Rs 100 a couple of times. On an average it is Rs 50 more than actual time/distance based fare calculations. I have reduced using Uber due to this. I tried contacting Uber support on this, but their responses clearly showed that they will continue doing it.

Sample responses:

Quote:
Thanks for reaching out and I'll be happy to clarify.

When you request an Uber, the price displayed in the app at the beginning of the trip is the fare you'll be charged for the ride. These fares are calculated dynamically, based on your pickup and drop off locations.

The calculation includes time, distance, local conditions (traffic, road blocks) and historical data in their city. Please note that your upfront price includes any applicable dynamic pricing in effect when demand is high.
Quote:
To ensure that you are not overcharged, I ran an estimate based on your pick up and drop location and see that the fare you were charged for this trip falls well within our fare estimate.

Please note that we aim for complete transparency with our fares, which is why the upfront fare is always displayed to you before a trip is requested. I see that the fare for this trip was INR 286.45 and because this fare was accepted and the trip fulfilled, I am afraid, our policy restricts us from adjusting the fare for this trip.
Quote:
We see that you were shown an upfront fare of INR 295.80. The upfront fare considers duration, distance, high demand in the area, tolls, and local conditions (traffic, road blocks) includes service tax payable to the government. We've resent the receipt of the trip to your registered email.
Since the fare is system generated, the breakdown of the same cannot be retrieved.
Appreciate your understanding in this regard.
I have concluded that they will continue to overcharge in this manner, so better to change ourselves and minimise use of Uber. Earlier UberGO fares used to be almost equal to Auto-rickshaw fare but now the difference has gone up to 100+ rupees.

If they come clean and say "Hey, we have increased our fares", I don't have any problems. But stealthily overcharging under garb of estimated traffic conditions, estimated duration, road blocks etc is definitely not acceptable atleast in my books. I consider it unethical

Last edited by AkMar : 5th May 2017 at 12:24.
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Old 5th May 2017, 13:39   #41
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Default Re: Car loans become difficult for Ola drivers

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Originally Posted by vinit.merchant View Post
Also, lately I have noticed that Uber no longer provides a proper breakup of the charge.

So when we book the cab, it shows how much it will cost for the ride, and then the final charge is exactly that, and no breakup of charge for kms, time etc is provided.
I stopped used Uber for this reason. Because it is no longer cheaper than the local Taxi/Rickshaws. I now use it very occasionally, when for example, the rickshaw guys ask extra.

But what I really liked about this Ola/Uber evolution is that it broke the monopolistic attitude of the rickshaw/taxi guys and their union. There was a time when I used to ask the rick guy where he would like to go, rather than the other way round.
Quote:
Originally Posted by AkMar View Post
+1 to the above. Also most of the times these upfront fares (that is what they call it) are much more than the distance/time you eventually end up riding. I have observed the difference to be as high as Rs 100 a couple of times. On an average it is Rs 50 more than actual time/distance based fare calculations. I have reduced using Uber due to this. I tried contacting Uber support on this, but their responses clearly showed that they will continue doing it.
But, I do continue to get breakup of the fares. While I agree, it's nowhere as cost effective as earlier, but still, the premium over autos isn't so high that I will go back to haggling with them in mid-day sun.

They do charge less than the stated fare, if your trip lasts for a lesser duration or distance. In this particular trip, the estimate was 49 or something, but I got down a little earlier and final amount charged was based on the actual KMs/Time.

Car loans become difficult for Ola drivers-uber1.jpg
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Old 5th May 2017, 14:26   #42
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Default Re: Car loans become difficult for Ola drivers

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But, I do continue to get breakup of the fares. While I agree, it's nowhere as cost effective as earlier, but still, the premium over autos isn't so high that I will go back to haggling with them in mid-day sun.

They do charge less than the stated fare, if your trip lasts for a lesser duration or distance. In this particular trip, the estimate was 49 or something, but I got down a little earlier and final amount charged was based on the actual KMs/Time.
You should consider yourself lucky then. Receipts I get are nowhere like this. It just mentions the exact same amount which was shown before riding. Here is a sample:

Name:  Uber.png
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Size:  14.5 KB
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Old 5th May 2017, 14:31   #43
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Default Re: Car loans become difficult for Ola drivers

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Originally Posted by AkMar View Post
You should consider yourself lucky then. Receipts I get are nowhere like this. It just mentions the exact same amount which was shown before riding. Here is a sample:

Attachment 1636299
Do you get a link at the bottom of this email directing you to the trip page?

Wordings are something like - "Visit the trip page for more information, including invoices (where available)".

The trip page has more details than the email, and the screenshot I posted is from the trip page.
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Old 5th May 2017, 14:41   #44
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Default Re: Car loans become difficult for Ola drivers

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Originally Posted by Dry Ice View Post
Do you get a link at the bottom of this email directing you to the trip page?

The trip page has more details than the email, and the screenshot I posted is from the trip page.
Yes, the link is present in the email. Trip page is no different. It shows this:

Name:  Uber.png
Views: 927
Size:  19.6 KB

It is worth mentioning that before upfront pricing started, the email receipt also used to contain breakdown like the screenshot which you shared.
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Old 5th May 2017, 19:32   #45
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Default Re: Car loans become difficult for Ola drivers

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Originally Posted by AkMar View Post
Yes, the link is present in the email. Trip page is no different. It shows this:

It is worth mentioning that before upfront pricing started, the email receipt also used to contain breakdown like the screenshot which you shared.
Interesting, let me see what happens with rides in Bangalore. Maybe they are trying this in select circles before rolling out across the country.
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