Auto-taxi drivers' discontent with Uber and Ola: Why Rapido is not a target

The strike, spearheaded by auto and taxi driver unions, has wreaked havoc on the Delhi-NCR's transport network

Traveling in Delhi and the National Capital Region (NCR) plunged into chaos today (Friday) with 15 auto and taxi unions on a two-day strike against ride-hailing services Ola and Uber. The strike, which began on Thursday, August 22, caused significant disruptions to the daily commute of thousands of residents who depend on these services.

Disruptions across the city

The strike, spearheaded by auto and taxi driver unions in the national capital, has wreaked havoc on the public transport network. Their mass participation has left commuters struggling to secure rides, resulting in long wait times and a sharp increase in fares for the limited number of vehicles still operating.

 

A history of conflict

This latest strike is part of an ongoing conflict between auto-rickshaw and taxi drivers and third-party app-based services such as Ola and Uber, which were criticised for steep commission rates. Over the years, taxi drivers have launched multiple protests against what they describe as ‘exploitative practices’.

In February 2023, for instance, a strike by drivers in Guwahati disrupted the city’s transportation. Similarly, in October 2018, drivers of Uber, Ola, Swiggy, and Zomato in Pune took to the streets, though their demands were only partially addressed.

Unions’ demands: A fight for fairness

Kishan Verma, president of the Delhi Auto Taxi Transport Congress Union, expressed the unions’ grievances, focusing on the high commissions charged by the cab aggregators and unethical practices of private bike taxi drivers linked to them. Verma also levelled serious accusations, alleging that some drivers are involved in illegal activities, including smuggling and drug trafficking.

“For years, we’ve been raising our concerns with the government and various departments about companies like Ola and Uber, but our pleas fall on deaf ears. It’s a game of donations, with the government complicit. We demand an end to this charade,” Verma told IANS.

The unions are demanding a complete ban on app-based cab services and the introduction of a government-regulated alternative to ensure fair treatment for drivers.

Drivers’ plight: ‘We earn pennies’

Drivers across Delhi-NCR have echoed these concerns, highlighting the financial strain of high commissions. “For a Rs 200 ride, I’m left with just Rs 110 or Rs 100,” an auto driver lamented to India Today.

Another driver from Noida added, “While these companies claim to charge a 10 per cent commission, the reality is closer to 40 per cent. After covering fuel costs, there’s almost nothing left.”

Drivers also criticised the lack of support from these companies when passengers refuse to pay. “If a passenger refuses to pay, the companies wash their hands of the issue, leaving us to bear the loss,” one driver said.

Rapido: A potentially better alternative?

Rapido, which launched its cab service in December 2023, offers a subscription-based model as an alternative to Ola and Uber’s commission structure. This model, extended to auto rides in February 2024, allows drivers to ‘recharge’ their accounts for a fixed amount and earn up to a specified limit before needing to recharge again.

“With Rapido, I can recharge my account for Rs 800 and earn up to Rs 10,000 from rides. It’s a better deal than what Ola and Uber offer, but if I exceed Rs 10,000, my account gets blocked until I recharge again,” a Delhi cab driver told India Today.

Safety concerns around private vehicles

Unions have also raised alarms about the safety and legality of private vehicles used for ride-hailing services. “Private taxis in these services pose a significant risk. They’re not just unsafe, especially for women, but some are also linked to illegal activities,” said Verma.

“There’s no accountability with these private vehicles. In the event of an accident, neither the company nor the driver takes responsibility,” added another driver.