Online transportation network companies like Ola and Uber were making a good business until the Government – of the people, by the people and for the people finally intervened to save the public from surge pricing of such transportation companies during peak hours.
Startups like Ola and Uber brought in a change of travelling experience and services for the public which got a very good response from customers. Kudos to the great idea and marketing techniques, they are the first names that comes to mind if you need to reach somewhere quickly. It started getting more attention due to the low rates per kilometer offered. But after all, profit is profit and companies need to survive on profit.
The people having the Ola or Uber app know well the policies of surge pricing used by these companies at peak times. Uber that costs Rs. 7/km displays a rate three to four times the normal fare during peak hours. Ola is no exception. The only reason behind this high pricing during peak hours is to make up for the other times when it is providing a very low fare rate to its customers. Clever thinking. But they couldn’t outsmart the Government. The Karnataka Road Transport Office had issued a directive that clearly asked companies like Ola and Uber not to increase their prices in an unusual manner.
Karnataka is the first state in the country that tried to regulate the fares of such transportation companies by issuing a directive against price inflation. But the effectiveness of the Government prohibition is almost equivalent to null.
The public is divided in their opinion. Some consider it as a good step taken by the Government to save the common masses from being taken advantage of. On the other hand, some people think that it will harm public as low rates might mean the number of plying cabs during peak hours will be less. But the one thing that has been accepted unanimously is the need of such laws for the protection of the people from such economic giants. It is obvious that companies will always look for their profit and customer satisfaction in order to build their brand name. There is no doubt that people are happy with the services of Ola and Uber especially the fact that they don’t need to depend on the drivers’ whims or agree to the extraordinarily high rates demanded by the yellow taxis. But that in no way justifies the price surging and making money out of people’s helplessness.
Now when Karnataka became the first state to take a step in this matter, Ola and Uber are behaving as if they never even heard of such a directive. Despite the directive, they are continuing to increase their prices at peak times and taking money out from the public.
This has caused a great amount of dissent among the public, especially who regularly use such cab services. While the public was expecting things to change for the good, there is no sign of any change in the working rates being implemented by the transportation companies. This is going to hurt their public image very badly.
Public is there to react and will always react. The flouting of rules by Ola and Uber has already done bad to their own public image. What happens next is yet to be seen.
