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Why drivers have slammed the brakes on apps

Carrot Shrinks: Many who took loans to buy cars for ola, uber plunged in debt

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Y Ali, Kaali-peeli taxi driver

Y Ali was a kaali-peeli driver for 22 years. He got calls from Uber and Ola rides join them but never considered them. "I was sceptical about giving up my government permit and joining a provate cab service.
"I am in my 60s. I have seen many drivers join Uber and Ola for better pay I think but that is just a perception. I make Rs 25,000-30,000 driving 12 hours a day. Those who joined app services are earning the same or only a little more than I."
Ali added, "If the earning difference is not much, why would I give away my kaali-peeli permit? In the end, I'm my own boss here. Nobody tells me what to do and where to go. I take my own decisions. I only drive for eight months a year and head to my native place for four months to farm."

Umakant Gupta, OLA/UBER, Mumbai

Since 2015, Gupta's income from driving for Ola and Uber has gone down by half. He is finding it tough to pay his EMIs. "We are vulnerable. These big corporates have played with our lives. When I joined in 2015, the income was Rs 50,000-60,000 a month but it is Rs 20,000-25,000 today. I had taken a loan against gold for buying a car four years ago. I am still paying an EMI of Rs 14,000, after which I am left with nothing for my home and car maintenance. I drive in hope every day that things will change. I'm going to be hitting 50 in a couple of years. Things are only getting worse."

He says there's no dearth of riders, but incentives on offer before have vanished. "I drive to outstation destinations now and then to make ends meet by generating additional revenue."

Praful Shinde, OLA/UBER, Mumbai

Before 2013-14, Shinde worked for a builder as a driver. "I remember working for 7-8 hours a day. Then, Uber and later Ola started posting huge ads about their entry. I decided to buy my own car," As it is, I was driving for someone else, so I might as well drive make more money," added Shinde. He had over Rs 12 lakh in his account. He took loans and bought an Innova, Desire, Accent and Enjoy over the years, as pricing of Uber and Ola differed based on the model. "I also sold off jewellery worth Rs 2-3 lakh. That time, the company promised incentives over Rs 1.25-1.50 lakh per month per vehicle. I took a chance," said Shinde. He began driving one of the cars and monitored his drivers who were running other cars during the day and night. "Gradually more cars entered the market and I started getting fewer passengers. I was barely earning Rs 60,000 or so per month from each car. I started struggling to pay off the interest on the car loans I had taken. Plus the share paid to the aggregator companies reduced my income," said Shinde.

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