‘Nearly four-fold dip in registration of new app-based cabs last fiscal’

Ola and Uber cabs make up for more than 50 per cent of tourist taxis in the city. Promised better incentives against each ride, drivers of app-based cabs were able to earn between Rs 60,000 and Rs 70,000 daily, after recording 10 trips on an average. (Representational Image)

Registration of new vehicles for app-based cab services like Ola and Uber in the Mumbai Metropolitan Region (MMR) has recorded a dip of almost four times in the 2017-18 fiscal compared to previous years, says transport office data.  While numbers for new vehicle registrations for kaali peelis continue to fall, drivers of both kaali peeli and tourist cabs are calling it quits, citing reduced profits, officials said. Former drivers with app-based cabs said that reduced financial incentives and increased work pressure made them move out. Compared to the 18,531 tourist cabs registered in 2015-16 and 22,688 in 2016-17, only 6,817 vehicles were registered between April 2017 and March this year.

Ola and Uber cabs make up for more than 50 per cent of tourist taxis in the city. Promised better incentives against each ride, drivers of app-based cabs were able to earn between Rs 60,000 and Rs 70,000 daily, after recording 10 trips on an average.

“Compared to earning Rs 60,000 to Rs 70,000, we started making anywhere between Rs 35,000 to Rs 40,000 a day. We were unable to encash much of it as a major share would have to be given to the companies. The work atmosphere also became uncomfortable as a single negative comment from a client would lead to loss of pay,” Praful Shinde, a former app-based cab driver, said.

Although app-based cabs are popular among commuters, as they offer AC rides at cheaper rates compared to kaali-peelis and have minimum chances of refusals, the monopoly is fading slowly, said officials. “By offering rides at such cheap rates per kilometre, Ola and Uber have followed an uneconomical transport model. When demand for cabs was more than the supply, they surged price three to four times their base fares, causing inconvenience to commuters. They also operate under the All India Tourist Cabs Permit that allows them to take rides outside the city limits. While effects of the model have started to wear out, early investors who had pumped in more cars in the business have withdrawn their vehicles,” a senior transport official said.

Former app-based cab operator Anil Shinde, who withdrew six cars in March last year, said: “After the incentives from pooling the cars in the business reduced, I withdrew all my vehicles. It failed to offer enough incentives.”

The government had moved a City Taxi Permit Policy in 2016 to regulate app-based cabs. By constituting a committee, led by senior bureaucrat B S Khatua, it wanted to cap the minimum and maximum fares for Ola and Uber rides. “Earlier, when the number of Ola and Uber cabs were more, not every driver could get business. The regulation in the number of cabs will ensure decent business. After the city taxi permit is in place, only the required number of app-based cabs that can do business will continue to operate,” the official said.

Kaali-peelis continue to see a dip in registrations with only 2,336 cabs getting recorded in the last fiscal, compared to 4,759 the previous year. While Maharashtra relaxed restrictions on the number of kaali-peeli permits to ensure an increase in their numbers, it was met with poor response.

“Kaali-peelis are popular among share ride users and some regular customers who have always used the black and yellow cabs. The cabs would have to rise to the competition if they have to survive. Ola and Uber can regulate surge pricing to remain popular,” A V Shenoy, a transport expert, said.

Satish Sahastrabuddhe, the additional transport commissioner, said: “While we wanted to encourage the growth of kaali peeli cabs, the effort did not get good response. However, kaali-peelis see a dedicated bracket of commuters and their business would not get affected.”

An Uber spokesperson said: “Uber tries to balance the rider demand with the number of available driver partners. Onboarding new driver partners or vehicles on the Uber platform is, therefore, a dynamic process and subject to market considerations. Uber continues to be a rewarding entrepreneurial experience for drivers and a preferred choice for riders… At present, we are continuing to see driver sign-ups while maintaining sustainable earnings potential. Studies suggest that one shared vehicle has the potential to take 9-13 cars off the road. As a ride-sharing solution, we are committed to solving Mumbai’s congestion and pollution issues while optimising vehicle utilisation rates.”

“There has been no impact of any kind on our business in Mumbai. In fact, we have witnessed a transformation in the way Mumbai commutes with Ola… Today, with 10,00,000 driver partners onboard and 9,00,000 vehicles on our platform, we continue to build a seamless mobility experience for our commuters and driver partners, alike,” an Ola spokesperson said.