Impact of Ola/Uber on Automobile Sector

October 09, 2019 282 views
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A generic notion is that “Access doesn't matter, but affordability does” but now the time has come in the automotive sector where two giants are stating that Access and Affordability is here! Yes People, Ola and Uber are the biggest companies in India who get that edge in the automobile sector.


India is home to more than 1.3 billion people who requires access to transportation to meet their daily travel requirements and a fact to consider here is that more than 300 million people belong to the middle-class sector. India Witnessed a huge upsurge in cab hiring's during the introduction of Ola and Uber cabs which results in aggression, Hostility and even protests on these corporate entities, but this Didn't last long due to the fact that not only automotive sector is facing a downshift but also the cab networks Ola and Uber are also facing a heavy decline in their bookings over the last three years.


Statistics tells us that the sale of automobiles including personal cars has faced a decline of 31.57 per cent due to less demand. Though Ola and Uber after getting established in 2010 and 2013 respectively faced enormous growth, their ride growth rates have declined to a mere 4.5 percent.


The same case has been faced by countries like Thailand, Japan and south Korea, where negative sales were observed, but anyway, we must accept that booking a cab has never been so easy and with new features like Live location, SOS, Safe Rides and Verified Drivers – People, especially the youth of the nation loves to harness the power and technology indeed boosting the Impact of Ola and Uber.


You might notice the difference in your daily life, where you book an Ola or Uber instead of calling the normal ‘autowala Bhaiya’ down your street, but even that autowala might turn out to be an Ola registered guy. In a world where technology meets the sky, Having Socio-Tech Companies like this is common as it also ensures justice to the ones who have been cheated on money while travelling to unknown destinations.


It is very well understood that ola and uber has an impact on areas like private car ownership, parking, aggregator driver perception, incumbents, commuter perceptions, vehicle kilometers travelled, city administration and a lot more while we notice an era of E-Governance, We must ponder of legislative innovations to set fair benchmarks in cities.


Countries like the United States are making progress on these issues by passing proper ordinances on cities that were pro on-demand services by even obtaining trip data to city administration. The Motor Vehicles Amendment Act 2019 has affected on Ola and Uber on matters like Uniform surcharge, Recognition of cab-aggregators as intermediaries, fees, Penalties on hand held devices, compliance with center's directions, central and state laws thereby trying to regulate these companies.


We must think upon the following questions to help boost the automobile sector as well as support these socio-technologies leading to innovation and upgradation.




1).   How to maintain the field level at the same time maintaining               innovation?

2).   How to carefully modify the current model by adding sustainable         transport inferences?

3).   What should be the Bench mark In Service Levels in cities?

4).   How fruitful collaborations can be emphasized and exercised?


5).   How and to What levels we must extend research on this field at         the current pace?


Let us think upon innovation and affordability in our lives that could benefit all our fellow citizens. Thinking on the present we must understand that now these automobile giants offer competitive pricing, a way to go cashless but at the same time affecting drivers earning who are our fellow human beings actively participating in India's workforce.


Keeping all these in mind, Let's Create a Better World Together. 


Jai Hind! Jai Bharat!


S.A. Mohamed Ashik


(Whatnext Edutech LLP Venture)

Bhopal (Head Office): 127, Zone-II, MP Nagar, Bhopal, 0755-4057435.