The complete collapse of Uber-Ola

During the pandemic many industries flourished, some survived while others shut down. It was a wide disparity of fortunes. One Indian service which is in the doldrums is the Mobility as a Service one or specifically Uber and Ola. Taxi drivers of this service faced a torrid time with the crash in demand. Now there are less such vehicles on the road as many could simply not sustain themselves and had to sell off or forfeit their vehicles. Some went to their hometowns and appeared to have quit the industry for good.

While air travel has returned with a vengeance, trains faced no such issues being owned by the government. Bus owners also had deeper pockets than the Uber-Ola drivers. That means we are left with a shortage of both vehicles and drivers.

Hailing a cab now is a terrible experience. Surge prices are the norm, but you still may not get one at thrice the price. If you finally get assigned one, it may be too far away or get cancelled at the last moment. If you luckily come face to face with your driver, he may ask you to cancel and pay the entire amount in cash to go to your destination. You are left holding his mobile to key in your address on Google Maps. There’s no safety and redressal that Uber-Ola will offer you if anything should go wrong.

There is no solution in sight. Many jobs have become permanently remote and the migration to Tier 1/2 towns is real. Fewer drivers will now look at Uber-Ola for a long-term career. In the heydays drivers got incentives and low commissions along with job stability. Now they have none of these things.

These companies overall seem to be in a bad shape too. Uber globally is not doing that great and has more controversies than successes. The senior leadership team of Ola has been shaken and their electric scooters, which only some time ago seemed to be the next big thing, have received very bad press. This is a shame indeed for the two rideshares were extremely convenient and they had tapped a huge market.

While the West is pushing driverless cars and public transport, all that is still lacking in India. Will these realities boost remote work and push the collaboration industry even further in India? Will we see the rise of Tier 1/2 cities as industrial powerhouses?

While many sectors have settled down after a turbulent 2 years, the likes of Uber-Ola are still in the air. One doesn’t really know where they will be say in another 2 years.