Ola, Uber drive autos out of roads

​Hyderabad: It is the survival of the cheapest. In spite of hiking prices when there is a demand or a heavy downpour as was the case on Wednesday, companies such as Uber/Ola, by and large, by dishing out discounts and low fare rides, are pushing autorickshaw owners into a corner.

While Ola and Uber insist that they are just technology providers for taxi drivers and commuters to connect and should not be treated as transport companies, auto unions however are up in arms and want a level playing field.

Telangana Auto Drivers Samakhya general secretary A Sathi Reddy says, “It is alleged that auto drivers always hike fares, but when taxi aggregators do it there is no protest. There is no regulation on cab companies.”

There are close to 1.25 lakh autos in Greater Hyderabad region but 17,000 Ola/Uber and other cabs are literally giving them a run for their money. Rohit Sharma, a resident of Gun Rock says, “When I can travel for the same price in an air-conditioned car why would I travel in a rickety auto.”

The minimum fare for an auto is Rs 20 for the first 1.5 km and Rs 11 per km thereafter, whereas cabs are much cheaper. Avinash, a resident of Yellamma temple, Balkampet, says, “I pay Rs 40 for a 4.8 km ride from Balkampet to Srinagar Colony and I do not mind it as I get to travel in comfort.”

Imran, an autorickshaw driver says that his earnings have come down drastically after the entry of Ola and Uber and fears that autos would be wiped out as they cannot compete with big companies like Uber and Ola.

Telangana State Auto Trolley Union organising secretary M Dayanand says that the transport department has not issued permission to the car companies and there is no regulatory body to keep a tab on them.

When asked, Joint Transport Commissioner B Venkateshwarulu said that permission to the car companies had not been given and the department was looking into the nitty-gritties.

One of the reasons why cars are taking over the autos is the long distance transport. People prefer cabs for long distance travel as they are cheaper and auto drivers too do not take up long distance trips as there is no guarantee that they would get a fare on the return journey.

Car companies are backed by large equity investments and can afford to give discounts, while autorickshaw owners take loans and pay interest and are unable to provide discounts. Rahim, an autorickshaw owner says that in a year he pays Rs 550 for road permit, Rs 260 for vehicle fitness and Rs 4,500 for insurance and Rs 55 every six months for pollution check. Uber and Ola are not subject to any regulation, allege auto unions and as a result are pushing the auto business to a corner.

On the flip side, Revathy, a regular commuter by autos says, “In a way, autorickshaw owners are to blame themselves for the situation they find themselves in. Ninety per cent of them are choosy about destination and refuse to ply if they do not like to go to a place the commuter asks. They would rather sit idle but take a passenger. This makes the people choose cabs over an auto.”