A strike this week by drivers of Ola and Uber turned out to be a damp squib, but highlighted the tough business model of cab-hailing platforms that requires them to squeeze drivers to generate higher margins, analysts and drivers said. On Monday, drivers at Ola and Uber went on an indefinite strike to protest against low incomes, but apart from Mumbai, cab drivers in other major cities didn’t participate in the strike in large numbers.
Sanchit Vir Gogia, the founder and chief executive at consultancy Greyhound Research, said cab firms have shifted focus from increasing capacity to improving utilization of their existing fleet, which will result in a drop in supply.
“Our estimates suggest that in the next 12 months, 25-30% of the pool of drivers with these companies will not exist anymore simply because there isn’t enough demand to be catered to. This is contingent on the fact that status quo is maintained in terms of incentives schemes,” Gogia said.
[HT Mint]
Copyright © 2018 Greyhound Research. All rights reserved. You may share this research note using the options made available. Please don’t copy this research note (complete or parts) and distribute over the web and emails. Connect with us if you need clarifications.
Have a question on this or other technology and innovation topics? Wish to understand what this means for your business? Click here to engage with a Greyhound Research Analyst.
Like this insight? Sign up for our newsletter to get our latest insights.
Wish to read more such Insights That Inspire? Access scores of other Free, Freemium and Premium Insights from the menu above.
Analyst:
Sanchit Vir Gogia: Sanchit is the Chief Analyst, Founder & CEO of Greyhound Research, an award-winning global research & advisory firm. To read more about him, click here.
Note for IT Decision Makers – Join Our Exclusive Community! Greyhound Research values your opinion and invites IT Decision Makers and Business Leaders involved in IT projects to join our exclusive, invite-only Greyhound Golden Gate (GQube) Councils. If your project is exclusive and we have your permission, we will write a research note about you and share it with the larger community. Over and beyond, this also gives you access to some of our thought-leading research and analysts. Please write to us on connect@greyhoundgroup.com and we’ll take it further from there!
Note for IT Vendors, Telecom Operators and Channel Partners – Did you see our Research Agenda? We have organised all of our insights in a way that allows you to better filter and read what works best for you. Please write to us on connect@greyhoundgroup.com and we’ll gladly share a copy of the research agenda with you.