Indian online transportation network Ola and American Technology Company Uber have cut and reduce their drivers cost and subsidies in last one year. The average income of these drivers which also include incentives, came down to Rs 21,000 per month in the second quarter of year 2017 compared to Rs 31,000-32,000 they made in the previous year during the same period.
Ola and Uber focus on Improving Margins
Incentives for drivers developed as a noteworthy attract the most recent couple of years, helping Ola and Uber shore up supply in snappy time. Be that as it may, these endowments have seen a 60% drop in the period under audit. The purpose for the declining salaries for drivers is the concentration by both Ola and Uber on improving their margins.
Ola and Uber cut their burn rate by Reducing Subsidies
The reduced subsidies have helped Ola and Uber cut their burn rates. While Ola has seen its monthly burn come down by almost half with the earlier year at $20-25 million, Uber’s is evaluated at $30 million, which too is a sharp drop from a year back, individuals acquainted with the numbers said.
Ola still ahead of Uber
In terms of market share Ola is still ahead of Uber. But both companies have dismissed each other’s claims of being in the pole position. Ola is evaluated to be timing around 1.5 million rides day by day, while Uber as of late said it finished 9.4 million rides in seven days in July.