Profile Image Rishi Majumdar

Uber - how does it work?

With the rising trend on private cab operators like Uber & Ola - I am just curious - how does it all work? Are these safe? Is it easy to get one in Mumbai? How does the company earn with all these discounts? 2 years ago

  • Knowledge Junction:Answered in 1165 mins

    Hi Rishi,

    Uber & Ola are what you call as 'App Based Cab Aggregator Services' wherein they link the customer (providing them with a cab) with the cab driver (providing them with business). These aggregators do this using an online application and usually charge a small fee from the cab drivers as commission (around 15-20%)

    How does it work?

    Simple, download the app from the App Store or Play Store, complete the one time registration and you're good to go!

    Uber has 4 different categories of vehicles in Mumbai based on your preferences:

    1. Uber Go - Hatchbacks : The cheapest category with pricing of around ₹8/km.

    2. Uber X - Sedans : This category will get you slightly better vehicles at ₹10/km.

    3. Uber Black / SUV - Premium / Premium + 6 Seater : This category will get you premium cars priced above ₹10lakh and a confirmed 6-seater if you book an SUV. Pricing is around ₹18/km.

    Are Uber / Ola safe?

    I'd say Uber is safer as they've got an extremely stringent driver registration process plus they've made it mandatory for every driver to get a Police Clearance Certificate.

    Ola doesn't have such requirements as of now.

    How easy is to get an Uber / Ola in Mumbai?

    Ideally it's very easy with cabs being available almost throughout the day, however, getting cabs may be a challenge in certain areas during peak times like 8-12am and 6-9pm.

    How do these companies earn with all these discounts they offer?

    It's simple, they don't! They've got deep pockets and are trying to establish themselves into the market so don't mind losing money at this stage. 


  • Profile ImageRishi Majumdar:

    That covered most of it. Maybe I wasn't clear, I was trying to understand how does it really work for the drivers? It seems to be getting quite popular with people 'investing' in cars and drivers running day in day out. Do they really make good money?

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