India 7% growth rate: Ola,Uber and car pooling apps

OlaUberBlaBla-India 7 percent growth-StratoServeOver the winter break India was an exhilarating and at times an overwhelming experience. The top growth rate of the world at 7% and young people moving fast in an ancient culture added to the exciting nature of the experience. Here are some examples:

The Private Taxi Business is over and Ola and Uber have taken over:

During previous trips one used to have a whole day taxi that operated on a 8hour/80km basis with extra charges for extra hours and extra distance. Generally the driver would be exhausted at the end of say 12 hours and arguments were common. Now with apps like Uber and Ola the taxi experience is completely transformed. Consumers get a cab within minutes and fares have never been more transparent. Anyone who ran a taxi business now is a member of Ola or Uber. Ola has a simple 15% commission it takes on rides from taxi operators and prices are sometimes as low as the three wheeler auto.  If it is chilly weather, you tend to take a car rather than the open auto much to the dismay of the auto drivers. Uber too has all kinds of promotions going on including a 100% bonus on rides that are ordered during peak times in Delhi. Both Uber and Ola have jumped into ride sharing to try and help with pollution control that is a real problem in Delhi.

Outside Cyber-city in Gurgaon you have bunch of Uber cars waiting in the night to avail of Uber’s “surge pricing” and we paid 3.1 times the fare as the driver waited for the “duty” to come in through his mobile phone. The more conservative taxi operator tends to go with Ola because cash transactions and commissions are easier to understand compared to the more complex Uber billing. There is really no need to have your own car today if the costs continue at the current levels. For the entrepreneurial driver, it is much easier to make 3-4 times more money as a driver-entrepreneur than as a salaried driver.

Car pooling apps and pollution control in Delhi:

Delhi has the dubious distinction of being the most polluted city in the world. The beleaguered Delhi Government under Chief Minister Arvind Kejriwal has put in an “odd-even” car rule that asks people to use private cars with “odd” numbers on “odd” days (1,3,5 dates) and “even” car numbers on “even” (2,4,6 calendar) dates. People were initially very skeptical about compliance but a massive outreach by the state government and huge volunteer involvement has seen a surprisingly large uptake. Amazingly the Delhi population understands that pollution is a crisis and have taken to using “car pooling” apps to try and car pool. A prominent app is “BlaBla Car.”

Technology adoption by both the uneducated taxi driver and the educated middle class at such a scale and with such rapidness is quite amazing. Clearly, Indians realize that there will never be enough roads and transport infrastructure that will be “enough”. Technology to make life easier in the new high growth economy seems to be the only way out. About StratoServe Digital Marketing Services.