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Chennai auto and cab drivers to boycott Ola, Uber from Feb 8: Here's why

Drivers plan to continue using local aggregator-apps like Namma Yatri, which charge a fixed daily subscription fee instead of commission-based deductions

Autos stand parked during a strike by auto and taxi unions, in New Delhi (Photo: PTI)

(Photo: PTI)

Md Zakariya Khan New Delhi

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Chennai is likely to witness a disruption in ride-hailing services from February 1, Saturday, as a section of auto and cab drivers have announced an indefinite boycott of aggregators Ola and Uber. The drivers are protesting against the high commissions—ranging from 25 per cent to 40 per cent—that significantly cut into their earnings, The Times of India reported.
 
However, drivers plan to continue using local aggregator-apps like Namma Yatri, which charge a fixed daily subscription fee instead of commission-based deductions.
 
Meanwhile, auto drivers who do not use app-based services have introduced their own fare structure. They have set a base fare of Rs 50, followed by Rs 18 per km.
 

Long-standing demand for fare revision

Zahir Hussain A, a coordinator of the Confederation of Drivers' Unions, Chennai, said the demand for a fare revision has been pending for 12 years, despite a directive from the Madras High Court. "The state government has not acted on it. The transport minister has repeatedly said the proposal is awaiting cabinet approval," he told The Times of India.
 
Drivers argue that existing aggregator rules meant to regulate peak-hour surcharges and commissions have been stalled for years. "With commissions as high as 40 per cent, we are sometimes forced to charge above the app-estimated fares, leading to conflicts with passengers. This strike and our new fare system aim to solve these issues," Hussain said.
 
When asked about potential government action against them for not following the official fare structure, drivers said they were ready to face the consequences. "We have no choice. We need to sustain our livelihoods, pay rent, clear loans, and support our children's education. We are not asking for crores from the government—just a simple order announcing revised fares," Hussain added.

Business model of Ola and Uber

Ola and Uber operate on a commission-based, on-demand ride-hailing model. In this, users book rides through a mobile app, which connects them with nearby drivers. The company acts as an intermediary and charges a percentage of the fare from each ride facilitated through the platform.

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First Published: Jan 30 2025 | 4:04 PM IST

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