Auto and taxi drivers strike in Delhi NCR: Ola and Uber face backlash over high commissions | CliqExplainer

Residents of Delhi and the NCR region are experiencing transportation challenges as over 15 auto and taxi unions have initiated a two-day strike against ride-hailing giants Ola and Uber. The strike, scheduled for August 22 and 23, is a protest against the high commissions these companies charge drivers and other alleged unethical practices. The unions’ action is causing significant disruption for commuters who rely on these services.

This isn’t the first time drivers have taken a stand against third-party ride-hailing platforms. Protests have been recurring, highlighting the growing discontent among drivers over the operational practices of companies like Ola and Uber. In February 2023, a similar protest occurred in Guwahati, impacting daily commutes. In October 2018, drivers for multiple services, including Uber, Ola, Swiggy, and Zomato, went on strike in Pune to voice their grievances.

The current strike is driven by complaints about high commission rates and concerns over private Ola and Uber bike taxi drivers’ involvement in illegal activities, such as smuggling and drug trades. Kishan Verma, president of the Delhi Auto Taxi Transport Congress Union, expressed frustration over the lack of government action, despite repeated complaints. He stated, “For several years, we’ve been writing to governments and departments about companies like Ola and Uber, but no one listens. We demand an end to this game.”

Drivers allege that Ola and Uber deduct almost 40% of their earnings, leaving them with insufficient income to cover expenses like fuel, car maintenance, and loan EMIs. Shankar Das, a driver who works with all three platforms, shared that from a ₹200 ride, he often receives only ₹100 to ₹110 after deductions. Similar sentiments were echoed by other drivers, including Rajesh Agarwal from Noida, who highlighted the discrepancy between the companies’ claimed 10% commission and the actual deductions.

In contrast, Rapido, which launched its cab service in December 2023, has received a relatively positive response from drivers. Unlike Ola and Uber, Rapido employs a subscription-based model. Drivers ‘recharge’ their accounts with a set amount, allowing them to earn up to a specified limit without further deductions. Satyajeet Gupta, a driver, explained that a recharge of ₹800 enables him to earn up to ₹10,000. If his earnings exceed this amount, he must recharge again. This model is perceived as more driver-friendly, reducing the financial burden on drivers compared to the high commission rates of Ola and Uber.

Despite the preference for Rapido’s model, unions argue that issues with private vehicles, especially those used for bike taxis, still pose significant safety and security concerns. Drivers and union leaders claim that private vehicles involved in these services are linked to illegal activities and lack proper safety measures, with companies shirking responsibility in the event of accidents.

The ongoing strike and unrest reflect a deeper issue within the gig economy, where drivers are caught between the high costs imposed by service providers and the need for fair compensation and working conditions. As the strike unfolds, commuters face the challenge of finding reliable transportation, while the debate over the future of ride-hailing services continues.

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