Pune commuters are facing a new challenge as private cab aggregators like Ola and Uber have suddenly increased fares during peak hours, rainy days, and when there is a shortage of cabs. With over 40,000 cabs operating in the city, thousands of passengers rely on these services for their daily commute.
The extra fare charged during these peak times is actually a surcharge for the drivers, ranging from 50% to 150% more than the regular fare. However, the majority of this money goes directly into the company’s account as a ‘third party’ service provider fee.
Interestingly, cab fares also vary depending on the area, with significant differences between rates near IT companies, the airport, and other parts of the city. During peak hours, rainy days, or heavy traffic, fares can skyrocket to two or three times the normal rate, leaving customers feeling like they are being taken advantage of by the drivers.
But in reality, only 10% of the surcharge money is given to the cab driver, while the remaining 90% is pocketed by the company. Additionally, the company also recovers money for its ‘third party’ service from both the driver and the passenger, a fact that many drivers are unaware of.
The cab aggregator takes a 30% commission from the total fare, leaving the driver with just 40% of the earnings. With fuel costs, vehicle loan EMI, and maintenance expenses to cover, many drivers are struggling to make ends meet.
According to Birudev Palave, President of the Maharashtra Tourist Taxi Sanghatana, the government sets the fares for cab services, but aggregators often ignore these regulations and charge drivers excessive commissions. This practice is making it increasingly difficult for cab drivers to earn a living.
Keshav Kshirsagar, President of the Indian Gig Workers Front, believes that the current business model of cab aggregators is illegal as they have not received proper operating permissions. He also criticizes the excessive surcharges imposed on passengers, calling for a limit to be set on these fees to prevent further exploitation.
As the debate over cab aggregator practices continues, commuters in Pune are left to navigate the rising fares and financial struggles faced by drivers in the city.
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