After Earning Huge Success, Ola and Uber Change Business Strategies to Earn Profits
BENGALURU: Whether looking to meet up with friends or attending a wedding function, the most convenient mode of transportation that flashes our mind is Ola or Uber. The service providers have captured the Indian market with variety of transportation offered ranging from sedan class to business class cars. In order to expand the market and bloom their income, both the Ola and Uber are increasing charges in top-urban areas.
According to The Business Insider, the ride- hailing applications are further planning to reduce the sum of incentives being paid to the drivers. The companies are also ascertaining in keeping a watch on the fraudulent drivers. The all new plan of Ola and Uber is completely focused towards ‘unit economics’ or the amount of money they get or loose on every customer, which in turn sum up to $30-40 million every month.
Following that Ola has made a huge deduction on the driver incentives as much as 20-40 percent in Delhi. The drivers completing eight treks with Ola in Delhi were offered 2,400 a month compared to 3,000 a year back. While Uber on the other hand, has decided to reward drivers incentives based on the earnings and not on the number of trips. "We are always working to make Uber the most affordable mobility option for our riders and an attractive economic opportunity for hundreds of thousands of micro entrepreneurs on our platform," an Uber spokesperson told ET.
Looking at the advantages, raising fares on the rides can push riders towards car-pooling services introduced by the service providers. Both of them have increased fares for categories, including Micro and UberGo by charging an additional 12/Km on UberGo and 13/Km on UberX after the initial 20 kms. However, the minimal fares for both remain the same.
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