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Ola, Uber fares decline as demand falls due to coronavirus

Meanwhile, driver associations are seeking a suspension of "Pool" services on their ride-sharing platforms

twitter-logo BusinessToday.In        Last Updated: March 19, 2020  | 16:22 IST
Ola, Uber fares decline as demand falls due to coronavirus
On an averge, 1.7 million rides take place through Ola and Uber in seven metros in India every day

The fares of Ola, Uber and Meru have hit rock-bottom in the last two weeks as demand has almost halved. Meru has slashed fares by flat 40 per cent on all its rides. Neeraj Gupta, the founder and CEO of Meru has said that the fares were starting as low as Rs 39 on the company's app.

On the other hand, fares of Ola and Uber are at their minimum threshold. A senior Ola executive called it a "dire situation" and hoped for things to get better, The Economic Times reported.

The centre and state governments have urged people to avoid non-essential travel in the country due to coronavirus outbreak. Several companies have resorted to 'work from home' to contain the spread of coronavirus which has severely affected the demand for cabs.

The ridership of bike-sharing startups Bounce and Vogo have also witnessed 10-15 per cent drop due to coronavirus.

Meanwhile, driver associations are seeking a suspension of "Pool" services on their ride-sharing platforms. According to the drivers, the suspension of cab "share" or "pool" services would ensure safety of passengers as well as more rides for drivers.

On an averge, 1.7 million rides take place through Ola and Uber in seven metros in India every day. And, pan-India, the ridership goes upto 2.25 million, according to a report by Redseer.

Also read: Coronavirus Live Updates: Woman with has travel history to UK tests positive in Chandigarh; tally rises to 170

Also read: Coronavirus in Maharashtra: Mumbai's 'dabbawalas' suspend services till March 31

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