Bhubaneswar: With the entry of app based ride hailing services such as Ola, Uber, the country’s transport sector has added a new dimension.
Uber, an American MNC, and Ola, and Indian MNC, have dominated the country’s daily commuting service sector. Both the CAB service providers have reaped big profit margins.
While Ola consumers earned a net profit of Rs 271 cr in 2023-24, the Uber India Systems Private Limited had reported a revenue of Rs 3,860crin FY 2023-24.
Both the companies have dominated the Indian market.
OLA, UBER DOMINANCE
Uber leads the Indian ride-hailing market in the cab category with a market share of 50%. Ola follows it with 34%, while Rapido trails with 14%.
In the auto-rickshaw segment, Uber holds 40%, Rapido at 31%, and Ola at 26%. Read the details below.
Cab Category:
Uber: 50% market share
Ola: 34% market share
Rapido: 14% market share
Auto-rickshaw Segment:
Uber: 40% market share
Rapido: 31% market share
Ola: 26% market share
OLA, UBER LOSING COMMUTER CONFIDENCE
The two app-based ride providing services grip in the Indian market has shown a fall in the last three years. From a share of 90% in 2021, the share has shrunk to around 70% in 2024.
The main reason behind drop in market share has been attributed to charging high fares and reducing driver incentives, and above all deteriorating service quality.
Amidst the loosening of Ola, uber grip, Union Home-cum-Copperative Minister Amit Shah has made a big announcement in the Lok Sabha that could sound death knell to the monopolies of Ola and Uber.
Even, recently, the Central Consumer Protection Authority (CCPA) has issued notices to both companies after reports surfaced suggesting that ride fares varied based on whether a user was booking via an iPhone or an Android device.
WHAT AMIT SHAH SAID?
Replying in the lower house on the Tribhuvan Shahkari University Bill, Union Minister for Cooperatives Amit Shah announced that within few months, Government is going to launch ‘Shahkari Taxi Service’ means taxis services operated by Cooperatives. (watch the video)
Amit Shah announcement on Shahkari Taxi Service Video
The Minister announced that a cooperative-based ride-hailing service designed to benefit drivers directly will soon be launched in the country.
It will allow cooperative societies to register two-wheelers, taxis, rickshaws, and four-wheelers without intermediaries taking a cut from drivers' earnings.
The minister said, the earnings will flow directly to the drivers, unlike Ola and Uber where the owners earn huge profits.
This initiative announced by Union Minister Amit Shah is first of its kind in the world where such app-based transport services are being handled by Cooperatives.
ODISHA ANGLE
According to the data available with Odisha govt, till date, the State has 558 urban cooperative societies and 6,813 rural, whereas 227 function in both rural and urban areas.
The announcment of this Shahkar Taxi Service will immensly benefit the State where self employment has been very high, following the operation of new initiative, the rural transport services will get a big boost in the State generating a strong avenue of self employment. It may help in curbing migration to outside states as it will generate round the year service to youths who have the skill of automotive driving, especially when the Modi govt is running the MUDRA Yojana sanctining loans withpout collateral security. The fares here will see a big rationalisation.
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