Hello, Quartz Index readers!
On Monday, many Indian drivers for ride-hailing services Uber and Ola went on strike to protest low earnings.
Driving for Indian ride-hailing firms seemed lucrative a few years ago when companies like Ola, TaxiForSure, and Uber first launched in the country. Flush with funds, they incentivized drivers heavily with high commission rates. But with the massive surge in driver numbers and companies increasingly focusing on profitability, drivers’ finances have worsened.
The four-day strike ended on Thursday (March 22) following discussions with Uber and Ola officials, but the protest highlights a major problem: The tough business model for ride-hailing platforms in India means drivers can’t earn enough money to survive; most can’t afford to make their car payments.
Uber claims an Indian driver’s monthly pay is between Rs45,000 and Rs90,000 (almost Rs20,000 more than the monthly starting salary at Infosys, India’s second-largest IT services company).
But the numbers don’t add up. Several Indian Uber drivers who spoke to Quartz quoted far lower figures for their incomes. Many were in such a bad shape that even striking was unaffordable because they needed every single day’s earnings to make ends meet.
Even if drivers in India make what Uber claims they do, it reflects a peculiar situation in the country’s job market where an engineering graduate makes less than a driver with limited education does. —Sushma U N
[qz-index-article id=1234583][/qz-index-article]
[qz-index-article id=1234470][/qz-index-article]
[qz-index-article id=1233683][/qz-index-article]
[qz-index-sponsor][/qz-index-sponsor]
[qz-index-article id=1233454][/qz-index-article]
[qz-index-article id=1232505][/qz-index-article]
[qz-index-article id=1232370][/qz-index-article]
[qz-index-article id=1231412][/qz-index-article]
[qz-index-article id=1231256][/qz-index-article]
[qz-index-article id=1231168][/qz-index-article]