Cab hailing services Ola and Uber are suffering from almost a 25% drop in the number of cars since the previous quarter. This information comes from a report made by RedSeer Management Consultants Pvt. Ltd.
According to the report, this fall in the number of vehicles associated with the two services is mainly because of the decline in incentives provided to the drivers. It was seen that those who left the platform did one of two things: either join a company which offered them an offline driving job, or change professions altogether.
Statistically, the report indicated a steady rise in the number of cabs last year from January 2016 with a final peak in December 2016 at 500,000 vehicles. However, within the next few months, there has been a decline by almost 120,000 cars because drivers have been looking for other, more lucrative job opportunities.
Both Ola and Uber claim to have more cabs in service than what RedSeer has stated and not by a small margin. According to both companies, they have 5-6 million cabs each affiliated with them. But, neither of them mentioned how many were regularly working every day.
Initially, drivers were satisfied at their jobs because both companies would […]