- Corona Virus outbreak has impacted services of ride-hailing apps such as Uber, Ola, and Meru resulting in low fares and very less demands.
Fares on ride-hailing sites such as Uber, Ola, and Meru have hit rock bottom as demands for these services has fallen by almost 50 percent in the two weeks as India has begun to take measures to curb the spread of the Covid 19 virus.
In an effort to attract riders, Meru has cut fares on all rides by a flat 40 percent, while fares on Uber and Ola are at their minimum threshold, while a demand-free limit ensures that spike rates never kick in. With drivers connected to these platforms, the situation has come as a double whammy.
They not only complete fewer trips every day but also receive less on every trip they complete. ET announced last week that driver’s unions in Bengaluru had even approached the state government seeking a two-month over of EMI payments instead of dropping driver’s profits.
“There’s a desperate situation driver are in and we understand that and hope things will soon normalize,” said a senior Ola executive. When asked whether the company was doing anything to boost driver earnings, he said: “there have not been any such steps taken yet.”
Over the past few days, Meru’s company has fallen 25-30 percent, Meru Mobility CEO Neeraj Gupta said.
“Our tariffs on the Meru app have been reduced by a flat 40%, with tariffs starting as low as Rs 39, making the fleet more available to customers,” added Gupta.
Nevertheless, Meru said it’s workplace transportation and car rental businesses have seen a small fall in usage, but that still accounts for a fifth of the ridership overall. Because of their high rates, the use of cab-hailing services, which primarily serve consumers in metro cities for commute and airport trips, has been largely restricted to white-collar workers.
The user base has dried up, with many companies asking workers to operate from home and air travel taking a hit. “With work from home being the most efficient standard and staying at home being the easiest, there has been a significant decrease in public transport and ride-hailing,” said Avik Chattopadhyay, an independent car expert. “Amid situations like this, people are still thinking about the good aspects of getting a personal mode of transportation because it is the best.
With every passing day, we are looking at different services getting affected badly due to the coronavirus outbreak and it is resulting in a very bad impact on the Indian economy. All we can hope is that this ends soon and we get back to normal along with work and economy.