The two largest ride hailing companies in India are experiencing slowdown after the exponentially growth for few years. Growth seems to be slowing down for both Ola and Uber thought the absolute number of daily rides has increased in 2018 to an average 3.5millions rides per day in every segments (Taxi, Auto, Shared and Bikes). OLA and Uber growth slowing down.
According to the Economic Times reports citing the analysts and company executives, growth in ride hailing sector fell down to 20% across segments (including taxis, autos, bike and shared cabs) from 57% in 2017 to an average 2.8 millions rides per day and 90% in 2016 to an average 1.9 millions rides per day.
The reason behind this slowdown according to the analysts and company executives are
- Lower driver incentives
- Customer discounts on ride
Both the above reasons are leading to a plunge in supply and higher fares. According to the Former Meru Cabs CEO Siddhartha Pahwa, ride fares have been raised from an average of ₹10/km to ₹15/km, this increase in ride fare making many target customers to go back to buses, trains and the Metro.