Cab drivers in Tamil Nadu are displeased about the frequently changing fares by the startups to attain an ideal payment structure.

The latest startup to undergo a change is UTOO.


UTOO’s programme revision

It has now decided to change the monthly salary system to a finance-led model that entailed a daily fee of Rs 500-700 from drivers for the cars.So, the drivers will need to pay a daily rent for the cars regardless of their earnings for a day. “Our grievance was that it came as a shock. We were not warned beforehand and this move is drastic,” said R Murugaiyan, a cab driver.


Statement by UTOO

“These protests are a spill-off effect of a resistance to change,” said C Sivasankaran, backer of UTOO. “The change from the company’s side is just a reaction to the growing demand for our service. We do not want to employ drivers any more. For that matter, even Ola and Uber do not employ them.”


Lakshya: Uber’s new scheme

Uber has restructured its payment model monikering it ‘Lakshya’, which influences supply on the basis of demand. In this scheme the drivers get to earn more if they drive in micro-geographies where demand is generally higher. For drivers, details about targets and incentives about the forthcoming week arrives on Saturdays through text messages, which some drivers say offers little scope of participative determination of fares.


What Uber has to say for its constant changing schemes

An Uber spokesperson said “We keep experimenting with our incentive structures, and the same might differ from city to city and can vary between one driver partner to another, based on the kind of incentive structures they opt for. Having said that, our idea is to ensure we help driver partners improve their organic earnings as we move forward in our journey from being a startup to a sustainable business.”

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