July 20, 2017

Uber, Ola slash driver sops by 40% in March quarter



Beggar in Pune
By Lukasinla at English Wikipedia (Transferred from en.wikipedia to Commons.) [Public domain], via Wikimedia Commons

Taxi-hailing apps Uber and Ola have reduced driver incentives by as much as 3040% in the March quarter compared to the preceding one, as the companies sharpen their focus on revenue per ride, according to a report by research firm RedSeer Consulting.

“If we look at the state of developed nations where cab markets have matured, we find the incentives offered are in the range of 15% to 20% of the gross booking value (GBV), thus giving an indication that the incentives might further go down. Declining incentives might be decreasing the driver satisfaction and incomes, but the monthly take-home income of online drivers is still more than that offered by offline sector,“ the report noted.

Initially, taxi-hailing apps introduced higher incentives to woo drivers to their platforms that almost equalled the GBV sans the commission deducted by cab aggregators.

As more drivers and customers signed up for the service, companies tweaked the incentive structure after assessing driver’s weekly earnings.

Incentives used to contribute to a significant chunk of the drivers’ take-home income and there could be a further drop in their incentives, which might be extended throughout the year, the report said.

TOI sent an emailed questionnaire to Uber and Ola spokespersons, but […]

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The News for the Gig Economy Staff is constantly searching the web for the latest news regarding freelancing and gig platforms to bring them to you in one handy place. All articles with this generic author have been sourced with the original location at the bottom of the piece. We encourage our readers to view the original source of all excerpts. NGE is a project of ARC Online, LLC.

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