The ride-hailing giant, Uber started its operations in 2012. Generally, it was built to avoid the expensive and substandard service of the cab companies. Uber’s circle includes the unlicensed and non-taxicab drivers offering the taxi-like services, but the drivers use new personal vehicles instead of the old yellow taxis. Uber with the help of smartphone connectivity connects rides, bills customers, tracks rides, and pays the drivers. But it is operated entirely as a virtual company, with its being treated as independent contractors, not the employees.
Both the professional and non-professional drivers would join Uber. They will become Uber drivers after passing through the online screening and they should offer the use of their personal vehicles. Uber drivers need not pay the very high licensing fees and they need not follow the strict controls of the traditional taxicab providers.
Uber has met with many regulatory issues in many places across the globe. Uber has been banned in Italy and Spain, but it is legal in Asia, Europe, the USA, and Canada.
Along with its positive aspects, Uber is also well-known for its controversies. Uber has also involved in many illegal issues. The company is also known for its cost-effective services as well as the controversial issues.
This is the tough year for Uber. The company is getting involved in controversies one after another. The year started with an issue in India. It is a bad start for Uber because, UberPool and Ola Share was made illegal in the places like Hyderabad, Bengaluru, and Delhi. It was made illegal because of the issue of incentives claiming for the sexism in the company, to add fuel to the fire, the video of the Uber’s CEO arguing with one of his own drivers was leaked and this added, even more, negativity publicity to the company.
Among this downward viral spread of news, Amit Jain, Uber India has mentioned in his blog post where he clarifies that issues revolving around the driver earnings and incentives he said that basically, Uber is committed to serving its driver community and the company is fully committed to India. And people who are making protests represent only the small portion of the entire driver community.
But, in contrast to the Amit’s statement, strikes are badly going on in the Delhi and Bengaluru regions. About 3000 drivers gathered at a place to protest against the ride-hailing giants Ola and Uber.
After 13 days, the strike was finally called off by the Sarvodaya Drivers Association of Delhi.
According to Uber India
Uber India president further said that driving an Uber cab for about six hours a day will make the cab drivers earn up to Rs.2,500 per day if not, they can at least earn up to Rs. 1,500 per day.
Like the other taxi and private drivers, Uber doesn’t follow the hourly wages concept, where the company has set hours and the hourly wages. The earning of each day differs on Uber. There will be no fixed price throughout all the days of the month. The wages depends on the number of trips per day. The incentives will vary widely based on the individual drivers. And the incentives are dynamic based on the business model of Uber.
According to the Uber’s system, drivers earn money from the fares paid by the passengers and accordingly they earn the incentives too. Uber will offer incentives to its drivers after completing the certain number of trips per day. The incentives are dynamic as it is the company’s business model, Uber will seek to understand, assess, and improve both the company’s incentives structure and the fares, added Amit.
Uber is expecting an increase in hiring. The future of the Uber’s business depends on making driving the most attractive choice. Uber’s business has expanded over three years in India. The company is looking for the sustainable earning opportunities for its drivers and paves interest in driving with Uber. Uber has 60% year-on-year driver sign-ups in January 2017.
The smartphone-based ride-hailing companies Ola and Uber are providing monetary incentives to its drivers for completing the required number of rides every day.
The frequently asked question is that whether the drivers are earning more or less same amount than before, for which, Jain answered that the drivers earning will increase over time, they believe that the driver earnings in India are impressive for the majority of the drivers even after reductions in incentives and the costs of the drivers are also taken into account.
In addition to the driver’s incentives the company also takes care of the affordability and comfort of the drivers. This will be one of the key factors for expanding their business.
Jain said that Uber categorizes its drivers into two types’ low-end and high-end drivers. The low-end drivers will be driving for Uber for short distances and they will often reject the long rides and they will stick to the particular area, where the high-end drivers will prefer driving at peak demand periods. And they have the capacity to drive the entire city.
Focusing on the driver protests, there is only the small percent from the entire driver community participate in the protest. The company has been communicating with the drivers every day through the phone, video and text messages, where thousands of drivers visit the company to resolve their issues.
It is not easy to maintain balance
Uber is a two-sided market. It is the responsibility of the company to maintain a balance between the needs of both the drivers and the passengers. There is high demand from both the drivers and the riders, the company can shift from the startup mode to the more viable business model, and began to reduce the higher levels of incentives for the drivers.
Amit said that maintain a balance is not the easy thing, but on the other side, without offering earnings for the drivers the service will not be feasible and it will not work properly.
The reduced earnings and the incentives have the major cause for the protest of the drivers. Amit said that the company was safeguarding the drivers by allowing them to not get into the difficulty with vehicle financing, that too particularly after the recent violation and alarming situation, which prevented many Uber partners from using the Uber app.
The conclusion of this protest still remains undecided. Some of the Uber drivers shifted to Ola. Amit aims to resolve this issue, but the questions of the protesters could not be answered by the company.
In addition to this, many taxi drivers protest against Uber in some of the major cities. The complaints on Uber include it undercuts the taxi cab fares, Uber is unfairly bypassing the operating fees, the company doesn’t follow the safety standards, Uber’s surge pricing is at the peak, and Uber drivers doesn’t have any proper license.
It is the responsibility of the company to overcome all the faults imposed on it. Controversies are not new for Uber. If the company solves any issue, it is getting involved in some new issues. The company should only find the temporary solution; it should work hard for the permanent result. The company is facing many regulatory issues worldwide. Hope the company will clear all those issues and back to the form soon.
“Anand Rajendran is CEO and Co-Founder of Zoplay, best PHP scripts development company located in India. Zoplay is a part of Casperon Technologies a leading social and mobile development company. I’m a Tech geek, Digital marketing expert, Entrepreneur, and Atheist who loves to write everything about PHP Scripts and mobile application development. Cabily Script is a clone of Uber, which developed by the tech gigs of his company.”Tags: Ola, Travis Kalanick, Uber, Uber App, Uber CEO, Uber Driver, Uber Go, Uber Pool, Uber X