miscelleneous

How Do the Indian Drivers Feel About the Change in Uber’s Incentive Scheme?

0
uber

“Everyone’s private driver” this is not only the tagline for the very popular raid-hailing taxi service, but also it replicates the mission of the Uber. The company tries to replace all the privately owned cars in all over the world with Uber; this is an outcome of the Uber’s driver behavior. Uber calls its drivers as the partners not employees. The core of Uber is its service, for the past few months the service of the Uber India has taken a hit.

Recently, the Uber driver took the trip at the midway, since the customer had booked the trip at the mid of the night. The customer thought that, the driver had taken the trip because he was on his way to home or he may guessed that the trip may be short, this is the thought for most of the Uber drivers now-a-days, or he may feel uneasy to leave the customer who is waiting for the ride on the road at midnight, or he is following his rules which Uber pointed him to do so.

Now-a-days, short and quick trips are preferred by the Uber drivers. This is because of the new incentive scheme which was introduced by the Uber in the recent past. The incentive scheme featured that the drivers who have up to a particular number of trips per day will be given incentives by the company. This scheme is aimed to attract the drivers and also to encourage drivers to take more trips. So drivers prefer short trips so that they can meet the targeted trips.

Advertisements


After this scheme is introduced, soon after you book a cab in the Uber, you will get a call from the Uber driver, because drivers doesn’t know the destination of the passenger, until the passenger gets in the car and tell about his destination, this is one of the norms of the Uber. So the drivers call the passengers and verify them about the destination and they ask unwanted questions, this may annoy the passengers, and sometimes they may think to shift to the raid-hailing taxi services like Ola.

This is what the situation happens in India after the introduction of this scheme.

If the trip is longer most of the drivers will make excuses. In India, the problem is, demand overtakes the supply. The Delhi auto drivers believe that, they will get the better trips daily though there are many cab services being operated in Delhi, because of the mismatch between the demand and supply.

Same is the case for Uber in India today. Uber drivers believe that they will get more raids even though they avoid the long trips.

The incentive scheme is aimed to take more trips, but this happens in the other way. It ended up in losing the customer satisfaction which they had on the company. In Delhi area, to get a ride from Gurgaon to Noida is very difficult as it is a very long trip, so most of the people prefer other cab services to have a trip from Gurgaon to Noida.

This incentive scheme has changed the drivers into jerks; this is similar to the Delhi’s shady auto drivers. Once you are on an Uber trip, you may notice that the driver will be in a hurry to end the trip. This happens because the driver will try to end the trip soon to meet his daily quota.

Uber permits its driver to accept the new trip, when the car is at the end of the present trip; this was implemented to increase the efficiency. The idea is to make use of the resources efficiently, and to help the driver engaged with the trips.

Economists say that, by lowering the overall cost, the price of the service will also be lowered. This may result in the bad experience, because when the driver accepts the new trip, his full concentration will be on the new trip, without concentrating on the present trip, at some situations he may feel like, asking the customer to walk for the last hundred meters of the trip, in order to avoid the traffic jam and get the next trip on time. This is a major issue for the company, as it advertises like “everyone’s private driver”. Sometimes the trips will from the point A to the point B, sometimes it will be like point A to the point C and then go to point B without taking a break.

Sometimes, the travel plans of the customer changes after booking the cab. Uber allows the customers to change their destination even after booking, but most of the drivers will not accept such booking and sometimes they refuse to take the trip. If the customer keeps on insisting them, they will become angry. The reason for this is same as the previous situations. Change in destination mostly involves the long trips, so they try to avoid it at most of the situations, because they will not get the bonus money.

Uber was introduced in India in 2013, in its initial stages it had a great opening, most of the people preferred Uber because it offered reliable and pleasant mode of transport at reasonable prices. Uber had the facilities which no other cab services had. When it began to grow, it tried many ways to get the investment back quickly, and people started to lose hope on Uber. If this continues the there will be no difference between getting the trip in uber and taking an auto for the trip.

About the new incentive scheme

NPHVA- National Private Hire Vehicles Association, said that it will inform Uber about the changes made by the start-up in its incentive scheme.

When Uber informed its drivers about the new incentive scheme, many drivers gave feedback, in order to express their concern.

The incentives will be provided in the form of money, in order to encourage the drivers to ride in their company. Previously Uber granted the hourly earnings for the drivers for completing a specified number of trips. Uber now modified the scheme, by introducing the new incentive scheme which boosted the earning of the drivers.

According to this scheme, Uber will provide an additional amount to the drivers if they have completed more than the specified number of trips with the hot spots where the customer demand for the trips is high.

Uber’s spokesperson said that, the scheme received the positive feedback before it was introduced. With this scheme driver can see their incentives growing after each trip, and drivers can track their performance in the app, he also said that the scheme provides more consistency and transparency.

One of the part time drivers of Uber said that, with the hourly fare scheme he can estimate how much he can earn per day, and with this new incentive scheme, he earns 30 to 40 percent less than the previous scheme and he also receives incentives. So comparatively he is not facing any income drop, by both the schemes he earns the same amount. The drivers did not face any rise in income after the introduction of this new incentive scheme.

The Uber on an average receives Rs. 100 for each ride from the customer, but altogether, he receives, Rs.300 for each ride, the rest of the amount is paid by Uber.

If the driver takes 12-13 trips per day, gets 1200 as incentives from Uber. So altogether, he earns Rs 3600-4200 per day, in which he has to give Uber 25% of his earnings, so that he can earn 2500 -3000 per day, on an average the Uber driver earns Rs.60,000 per month. This is inclusive of the incentives.

[Top Image – GongTo / Shutterstock.com]

Like this content? Sign up for our daily newsletter to get latest updates.

Advertisements


Anand Rajendran
Anand Rajendran is the Co-founder & CEO of Casperon. He is a a content marketing and social media marketing Specialist. He covers many things like ecommerce, marketing, design, development, strategy, plus emerging trends, including omnichannel and cloud replatforming. Getmetaxi is a Software development Company Owned by Casperon Technologies which has launched a Taxi Dispatch Software called Cabily.

    SEBI’s VC Fund Gets Rs 60 crore from SIDBI to Support Startups in Rural and Agro Space

    Previous article

    Food Tech Startup Box8 Raises $7.5M in Series B Round Led by IIFL Seed Ventures Fund

    Next article

    Comments

    Comments

    This site uses Akismet to reduce spam. Learn how your comment data is processed.