Uber has recently been in news in India and around the world. A woman passenger was allegedly raped by a Uber driver in Delhi and the fallout was very bad.
I have used Uber for some time in US and I believe it is a revolutionary service that impacts most of us who travel a bit. The other one is of course AirBnb. Uber freed me from the seedy taxi services we see in urban areas in US, overpriced, seedy service. I sometimes wonder if women ever use old taxi services given its seedy nature. Hailing a cab is a nightmare in Manhattan. With taxi medallions costing over a $1 milion USD the cab costs having been going up in NYC.
Enter Uber. It made my life easy to get reasonably priced taxi service in most parts of the world. Having lived in Austin and now in New York City, Uber and other taxi services are god sent. You can call them anytime, from almost anywhere in US.
If you are not familiar with Uber, here is how it works. You can be Uber driver or a Uber passenger.
As Uber passenger, you download the app on your smartphone. You store your credit card info and sign up at Uber website. Anytime you want a taxi, you turn on the app on the phone, specify where you want to be picked and the destination. Your request is routed to few Uber drivers in your vicinity. Once your request is picked by one of the Uber driver, the driver drives his car to your location to pick you. Once you are dropped up at your destination there is nothing you have to do. You will be charged automatically on your credit card.
When you sign up for Uber as a driver, they do a background check about you (criminal, driving history, etc). Once selected you are given some training (at least in India) on how to communicate with customers, how to use Uber app on iPhone, etc. Then they give you an iPhone with their app on it at no price in India but I heard they charge a monthly rent of $10/month in US. All communications are done through this iPhone. When the driver decides to ply his car, he will turn on Uber's phone and makes himself available. Based on the driver's location, taxi ride requests are routed to him. If he decides to take it, he will respond and then connected to the customer. If not interested, he ignores the request. After certain number of requests are ignored Uber tries to find out why and it may reflect poorly on the driver and may eventually result in termination of contract with them.
Both the driver and the customer gets to rate each other. This gives a great incentive to behave well with each other. Once the customer finishes his/her ride, he just walks out of the cab. The actual ride cost is automatically charged to your credit card. In US, the price per mile changes dynamically with day of time and location. Greater the demand greater the price. So hailing a Uber cab around 9 PM or later from an airport costs more than hailing it in suburbs during working hours. One can watch the prices rise or fall and then hail for a cab. I see the old yellow cabs in US fading away soon with the coming of Uber or Lyft.
I signed up for Uber while living in India and never got to use it in India until recently. Few days back, with no vehicle to take me to the city in Hyderabad, India, I used Uber. There was only one Uber taxi in my neighborhood at 7 AM and it showed up on time. I was running late for a breakfast meeting and hopped into the taxi. The taxi was exceptionally clean and was running smoothly. It is my habit to get into conversation with Uber drivers. I ask how they find the service, how the service works, how it impacts their lives. Most Uber drivers I find in US are immigrants. I had two Ethiopian drivers in Austin and Pennsylvania, mostly Pakistani and west Africans drivers in New York City, a few white Americans, and one 60+ year old dignified suit wearing Greek driver in Astoria, New York.
So I started to chat with my first Indian Uber driver. His name is Srinivas, hails from nearby town, passed 12th grade and can read/write/understand English. I asked him how it works in India.
Srinivas used to be a regular taxi driver working for Meru cabs. Meru is a normal cab service that took off during last few years in India. They provide taxi cars to the drivers, charge them a daily rent, take care of the car, market the taxi service, and route the customers to their drivers from their call center. They track the cars through GPS and provide credit card charging service on the cabs itself. The drivers get to own their cabs after working for 3 years for Meru. In addition to charging a daily rental fee for the cars, Meru takes 15% of the fare while charging the customer Rs 21/km or so.
Apparently Meru reneged on the promise and did not give the cars after 3 years of services from the drivers. The drivers went on strike but could not sustain. Srinivas was decided to go on his own. He took a bank loan of about Rs 800k (8 lakhs) with Rs 3 lakhs down payment. He started using his private car as Meru cab initially and later signed up for both Uber and Ola (Indian version of Uber). Uber takes 20% of the fare and provides far more customers than Meru. To encourage more drivers, Uber gives bonuses after each week or month. The bonuses could be hefty for the drivers like Rs 5k or so. Uber provides iPhone at no cost to drivers while Meru expects its drivers to purchase the phone from them.
Srinivas claims that he gets somewhere between 4-7 rides through Uber each working day and lot more during weekends. The most popular spots are in Hi-tech area, Banjara hills area, the hotels in Banjara area, and the airport. He says that all rides from the 5 star hotels are always through Uber and never through Meru. He says that for costumers, Meru is lot expensive because it charges Rs 21/km while Uber charges Rs 13/km. There are no off-hour charges as they are in US. All Uber drivers are taxi drivers and none are private drivers like we see in US. Uber gives bonus for every passenger picked from the airport.
Since Srinivas signed up for Uber his income shot up many folds. He claimed that when he was plying Meru cab using Meru's car he was hardly making around Rs 7-10K after all expenses. When he was able to buy his own car he is able to take home Rs 20k+/month after all expenses including mortgage payment, car servicing, fees to Meru and Uber, and gas/diesel. He maintains his car exceptionally well. It is extremely clean inside in spite of being 3 years old. He is married recently and hopes to purchase more cars and use them for Uber taxi services. He informed that Telangana government these days provides interest free loans or provides gauranteed loans through banks to taxi drivers to purchase the vehicles.
Srinivas tells that Uber is having impact not only on the taxi services in India but also on the auto drivers. Autos charge about Rs 10/km which is not much less from Uber's price (Rs 13/km) on top of it one has to haggle a price with the autos who don't use the meter.
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