As Ola and Uber started to gain ground in cities, the companies began to actively experiment with exactly how much money they needed to spend like this. Could drivers hit 40 rides in three days, and do it for less money? Uber and Ola both kept tweaking the figures.
These annoyances and frustrations become evident and visible when you talk to any Ola or Uber cab driver in New Delhi, and elsewhere in India. But these amendments weren’t imposed overnight. Much like other businesses, the transportation space Ola and Uber operate in works on supply and demand model, explains Sanchit Vir Gogia, Chief Futurist, Founder & CEO, Greyhound Knowledge Group.
As the demand of Uber and Ola surged in the country – more people became aware of the service and availed their offers – the companies ensured that supply was also growing in parity with it, he added.
“Neither Ola nor Uber are breaking any laws,” analyst Gogia told Gadgets 360. “They are free to make amendments to their business models as they see fit.”
“The reality is that Uber and Ola have both given jobs to tens of thousands of drivers who were finding it increasingly difficult to get any other job. Uber and Ola aren’t going to throw any more money. That period is long over,” says analyst Gogia.
“Drivers always have the option to quit Ola or Uber,” Gogia added.
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Sanchit Vir Gogia: Sanchit is the Chief Futurist, Founder & CEO of Greyhound Knowledge Group, a Global Strategy & Transformation Research, Advisory & Consulting Group. He also serves as Chief Analyst & CEO of Greyhound Research, a Global, Award-Winning, Independent Technology & Innovation Research, Advisory & Consulting firm. To read more about him, click here.
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