Online Taxi Startups and White collar Drivers


The CEO of TaxiForSure, Raghunandan G, illustrated the pattern on which the business of taxis works in India. He added that they attract the drivers with incentives without having to worry about the number of rides they achieve. Drivers at this startup earn 7,000 per day on an average whereas the highest recorded salary earned for a given day was 17,000. Uber’s market in Kolkata is racing ahead where drivers pick up 40,000 to 60,000 monthly.

uber taxi app"Suddenly, the incentives are so high that we work even harder to earn more. Before Uber, the maximum anyone could earn was 10,000 and now the dynamics have completely changed," said a Kolkata-based Uber driver, who earlier worked for a business family in the city.

Ola and TaxiForSure are racing ahead in the market with Uber gearing up to grab shares from Meru. At Uber, the more the drivers work, the higher they paid. Lack of well educated and skilled drivers is the only drawback being faced by this booming industry.

The drivers being the key factor in realizing profits for these startups, they ensure the comfort and safety of the same by making them technology friendly. Rs 1, 000per driver is shelled out by the aggregators to train these drivers besides offering incentives up to 25,000 in a month. This pattern constitutes the strategy of the company disguised as corporate social responsibility.

"Drivers are trained to take ownership of the ride like entrepreneurs, unlike just a driver, making the whole experience a lot better for the end customer. Ola has set up a fund of 100 crore to enable drivers buy their own cars and turn driver-entrepreneurs," said Anand Subramaniam, head of corporate communications at Ola Cabs.

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