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India’s Ola, Uber drivers demand higher pay

India’s Ola, Uber drivers demand higher pay

Mubasher: Hundreds of drivers for US ride-sharing Uber and its local competitor Ola held strike on Monday in the two largest Indian cities, Delhi and Mumbai, demanding higher fares to match rising fuel prices.

Fuel costs in India have surged over 20% since the beginning of this year, while ride-hailing drivers stated that their fares have not increased at the same rate, making it difficult from them to cover expenses despite longer hours.

“The companies don’t understand the issues drivers face [...] they have reduced fares when they should be paying a higher rate,” Mumbai taxi drivers’ union Maharashtra Rajya Rashtriya Kamgar Sangh secretary Sunil Borkar told Thomson Reuters.

The strike action came amid calls from other drivers for staging an indefinite strike action in Mumbai until higher fare demands are answered, Borkar said, uncertain about the number of drivers who would join the action.

“We regret the disruption caused to our rider and driver-partner community, due to a small group of individuals,” Uber said in a statement in response to the driver strike, confirming its commitment to ensure that drivers “continue to access a stable income.”

The rising costs of fuel, which came on the back of higher oil prices and a weak rupee (INR), is the latest blow for drivers who already operated on thin margins. Their incomes dropped over the past two years after Uber and Ola slashed incentives to boost profitability.

At the time of high incentives, many drivers left well-paying jobs and bought cars through loans, in a bid for higher earnings.

However, as the number of drivers increased and thus the supply of car service, both companies lowered incentives.