Cab service providers Ola and Uber have apparently refused to use the parking slots available at the railway stations of India. While Indian Railways in an attempt to resolve the issue tried to continue with their arrangement of offering designated parking to the service providers but were hastily let down.
Uber And Ola Will Not Bid For Parking Spots At Railway Stations
In cities like Mumbai, Delhi and Bengaluru, Ola and Uber have pulled in a lot of business by setting up their kiosks and bidding for parking spots near or outside the railway stations. But as per the cab aggregators, the contract being offered to them now is not feasible. The leading cab aggregator companies have already made their move and have removed their kiosks from the railway stations of Bengaluru and New Delhi.
A government official confirmed that there have been multiple attempts to keep the partnership alive, but to no avail. He said that the companies are not sure if they want to continue with the partnership with the Indian Railways.
Why are Uber and Ola Not Continuing With The Partnership With Indian Railways?
1. ROI
The returns that the companies expect are not being matched. As per both the companies the Rs. 7 crore contract which was awarded to them is not quite feasible.
The government official revealed, “In most of these stations, the companies had gone for higher bids. For example, in Bengaluru where the bid is INR 7 Cr, these companies are finding it difficult to find to run their operations.”
2. Competition
While the companies are competing with each other they also face competition from auto-rickshaws and prepaid taxis which results in diminishing their demand.
A senior-level officer of one of the cab providers also revealed, “We face a lot of logistical challenges like cabs getting stuck in railway parking lots for hours and our driver-partners complaining of tussles with prepaid taxi and auto operators.”
3. The Hustle
Cab drivers of both the companies are not soon keen on waiting for long periods and rather prefer being mobile for finding passengers.
