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Uber introduces fuel price centred fare mechanism in Mumbai


Giving in to drivers demand, cab aggregator Uber has come out with a new fuel price-linked fare mechanism. Being rolled out in Mumbai first, it will increase gross earnings of drivers by Re 1 per km, Rs 2000-2200 monthly for an eight-hours driving.

Ubers claims new fare calculation process will increase the gross earnings of driver partners by Re 1 every kilometre through a press statement. The move has come just two days before the proposed strike by drivers on upcoming Sunday and Monday to the management.

After a recent rise in fuel price, drivers of cab aggregators have asked for a fuel-price linked fare mechanism and Diwali bonus. In October, they had also gone on a 12-day strike in Maharashtra on pretext of falling income.

On Nov 3, the strike was called off after assurance from cab aggregators that they would make a new fare chart on the price-per-km basis in two weeks. They also promised revival of incentive schemes favouring drivers.

Soon, Uber would launch a national fuel price index to make sure that drivers’ incomes don’t impacted with changes in the fuel prices.

To woo supply and keep it intact, Uber had partnered with ICICI Lombard General Insurance to provide free insurance to its 4,50,000 drivers last year.

The standoff between cab aggregators and drivers is not something new. Ever since cab aggregators arrival in the country, drivers have had witnessed many ups and downs.

Three years ago, Ola and Uber drivers were making anywhere about Rs 60,000 to Rs 80,000 a month as both the aggregators had an aggressive footing on drivers’ (aka supply) acquisition. But as the year passed by, they cut down on incentives, which resulted in a drastic drop in drivers earnings.

This has led to several protests by drivers including Bengaluru, Mumbai and Delhi.

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