India considers commissions cap for Uber, Ola, unsettling industry
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Re: India considers commissions cap for Uber, Ola, unsettling industry
#2Why would it be "... another blow" ? Isn't this fantastic news for Uber? Since it applies to everyone equally, this signals the end of the race to the bottom between the aggregators.
Any lost of income can just be mitigated by raising headline fares. Since most drivers are on all apps at once, they will take the job that post the highest fares.
Re: India considers commissions cap for Uber, Ola, unsettling industry
#3This is a welcome move. For short, small-value rides like with auto-rickshaws, Uber and Ola's commission can be close to 100% or even more. You can travel (slightly) cheaper by negotiating with the famously fleecing rickshaw drivers themselves.
Re: India considers commissions cap for Uber, Ola, unsettling industry
#4Why would it be "... another blow" ? Isn't this fantastic news for Uber? Since it applies to everyone equally, this signals the end of the race to the bottom between the aggregators. Any lost of income can just be mitigated by raising headline fares. Since most drivers are on all apps at once, they will take the job that post the highest fares.
In many Indian cities the maximum fare is also fixed by the government. Uber/Ola make money only from the commission. They attract drivers not with higher fares but with various reward schemes - e.g. complete X rides within Y time to get a bonus of Rs. Z.
Re: India considers commissions cap for Uber, Ola, unsettling industry
#5Just experienced what the lack of app based surge pricing does. After exiting a major sporting event I expected the streets to be swarmed by taxis - easy money for them
But there was no incentive, nothing to tell the city’s drivers to show up en-masse. They would just earn the same city base fare
Thousands of people either had to walk or wait in line at the crowded metro station
Re: India considers commissions cap for Uber, Ola, unsettling industry
#6We'll seems like Indians don't deserve nice things.
Re: India considers commissions cap for Uber, Ola, unsettling industry
#7Just experienced what the lack of app based surge pricing does. After exiting a major sporting event I expected the streets to be swarmed by taxis - easy money for them But there was no incentive, nothing to tell the city’s drivers to show up en-masse. They would just earn the same city base fare Thousands of people either had to walk or wait in line at the crowded metro station
I'm guessing the regular people in the city were very happy that they didn't experience sudden shortage of taxis, coupled with an extreme surge in price. Meanwhile, the spectators from the sport event were incentivized to choose the more efficient means of transport.
Looking at it from the systems level, I'm not at all convinced that when a mass event spikes the demand for taxis, having drivers go to that event chasing profit is a good idea. Imagine half the plasma in your body moving to your digestive tract the second you eat something. I think from the city's perspective, it's better to have taxis minimize variance than maximize profit.
Re: India considers commissions cap for Uber, Ola, unsettling industry
#8This is a welcome move. For short, small-value rides like with auto-rickshaws, Uber and Ola's commission can be close to 100% or even more. You can travel (slightly) cheaper by negotiating with the famously fleecing rickshaw drivers themselves.
> famously fleecing
Fleecing who? Natives would never pay more than a dollar or two for a short ride, and never more than 10-20% more than the “fair” value. It’s even better in places like Mumbai, where everyone uses a standard meter.
Tourists would pay 10x but in my experience they don’t even notice or care they’re getting fleeced because $10 for a short (5-6km) trip is a reasonable price to them.
Re: India considers commissions cap for Uber, Ola, unsettling industry
#9Just experienced what the lack of app based surge pricing does. After exiting a major sporting event I expected the streets to be swarmed by taxis - easy money for them But there was no incentive, nothing to tell the city’s drivers to show up en-masse. They would just earn the same city base fare Thousands of people either had to walk or wait in line at the crowded metro station
I'm guessing the regular people in the city were very happy that they didn't experience sudden shortage of taxis, coupled with an extreme surge in price. Meanwhile, the spectators from the sport event were incentivized to choose the more efficient means of transport. Looking at it from the systems level, I'm not at all convinced that when a mass event spikes the demand for taxis, having drivers go to that event chasi…
> Imagine half the plasma in your body moving to your digestive tract the second you eat something
Actually this is not too far from what really happens soon after you eat a big meal. The blood flow to the stomach-related arteries greatly increases soon after a meal (not sure on actual number for "greatly").
I tend to agree with your main point in any case.
Re: India considers commissions cap for Uber, Ola, unsettling industry
#10I can't see any situation where Uber retains its current volume if it increases its prices.
I'm not a particularly price sensitive customer, yet I find myself taking auto rickshaws more and more. The gap between their fares and Uber are becoming a little to unjustifiable. I'm comfortable with an Uber being 1.5-2x more than an auto, but fares these days are often 2.5-4x higher.
My Uber usage is now reserved mostly for edge cases - going to the airport, going home after a night out, bad weather conditions