Challenges faced by driver associations all over the world

Back in 2009 when Travis Kalanick and Garrett Camp came up with their brainchild – Uber, not many would have thought will start a revolution in the taxi industry. The idea of a taxi-app platform was both unique, innovative and had plethora of benefits for customers and drivers.

Soon after Uber’s success, other companies like Lyft, Grab, Ola, and Careem also made their mark. The advent of taxi-aggregators services demolished the business of traditional taxis all around the world.

Which is the reason why associations of traditional taxi drivers always lock horns with that of taxi-hailing services.

However, recent few years have proved that this situation is not only for the traditional taxi drivers. There have been several protests and strikes by the drivers of taxi hailing services in different parts of the world too.

In this article we’ll discuss in detail all the challenges and struggles of a traditional driver’s association as well as the association of app-based taxi drivers.

Challenges faced by app-based taxi drivers

Situation in India

The total number of drivers driving for ride-hailing giants such as Uber, Ola, and others in India is a staggering 1.5 million.

India has seen a couple of nation-wide strike by the drivers against these companies. The main reason behind the strike was that the money made by drivers from these apps was not enough for their survival. This made them helpless to participate in such strikes.

The situation wasn’t this grim early on. When Uber first came to India in 2013 they promised drivers earnings around $1500 which was a huge sum for a cab driver.

The temptation was huge, which resulted in many people leaving their job to earn some hard cash. Clerks from banks left their job, people sold their land to buy a car, and rest took a car loan.

Many of these drivers did make huge earnings for the initial years. For example, in 2016, an Uber drive in Delhi who worked on an average of 10 hours used to save 50k after paying his car loan installments, fuel expenditure, and other maintenance costs.

However, by the end of 2016 the thing took turn. Uber reduced its charge per kilometer from Rs 11 to Rs 6.

Drivers that earlier used to get an incentive of Rs 2000 on completing a dozen of rides each day were now given weekly incentives only on completion of 40-50 rides. And on top of that Uber hiked its commission from 10% to more than 30%.

Many drivers claim that their earnings have stooped down to $10 per day. Such meagre amount is not enough for their survival especially when they have to pay installments of their car loan.

The miserable condition of drivers forced all the driver associations to come together and raise their voice.

The main demand of these associations was that their taxi companies must provide them with steady business of monthly $1500.

Situation in Uganda

The condition of app-based taxi drivers is similar whether it’s a developing nation in Asia (India) or a developing nation in Africa (Uganda).

By the end of 2018 all the drivers of the two taxi behemoths under SODA went on strike demanding higher fares and better working conditions amidst of rising fuel prices in the country.

SODA (Smart on line driver’s association) is an umbrella body that brings all the drivers working for Uber and Taxify which are the most prevalent taxi hailing companies in Uganda.

According to the chairman of SODA Musa Kabunga “it’s unfair for the taxi companies to attract more customers by setting low prices at cost of drivers’ loss.”

The drivers are demanding sh7,000 for the shortest distance covered. They are currently getting sh4,000 in Uber and sh4500 in Taxify for the same. To add to the woes, the companies have hiked the commission from 15% to 25%.

Apart from the fares and commission the drivers also demand some amendments in the company’s policies regarding drivers’ safety. For example, they want the company to come up with a compensation system that pays drivers who have met with accidents or robbery.

Moreover, they also want a 24*7 platform on which they ask for help in all emergencies. They also want the platform to accept complaints regarding customers.
Original source :  Driver associations all over the world