When Ola And Uber Run On A Reverse Gear

When Ola And Uber Run On A Reverse Gear

With the strike of cab drivers over some time now, the app-hailing companies Ola and Uber have been running on a reverse gear. Why is that their businesses seem to be thrown out of gear when it comes to resolving the conflict between the management and the cab drivers? Let’s have a look at the issue.

From the cab drivers’ point of view, they demand incentives and better wages. That means to fix a price for the first few kilometers (say 3 km) for a standard ride. Maybe this is due to the loans they take to buy a new car. This is all to meet that financial need. In that sense, they seem legitimate. But they also allege that the companies promise one thing and do the other.

The problem here is the cab drivers seek the intervention of the government. The government may not intervene as long as both management and cab drivers follow the law and are within the limits. It can only step in when the commuter interests are at stake in the form of exorbitant pricing.

From the management point of view, the companies spend millions on the advertisement to attract new commuters and retain the customer base. They have to devise new schemes in order to compete with their rivals. Legitimately, they expect profits to run their businesses and to sustain them in the long run.

Since this market is dynamic, it is hard to stick to the same old terms and conditions. The companies have to keep on changing their policies. Since the companies and individual cab driver enter into a business agreement, as some say, it depends on the driver’s part whether to run their cab under a cab aggregator.

The best part is if Ola and Uber hold talks with cab drivers, and resolve the conflict amicably, they will not need to run on a reverse gear.

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