Mar, 2018     

Online Mobility Market Updates-Mar’18

Online Cab drivers take home 40% of the revenues earned

An Online Cab driver who works around 25 days a month on an average makes nearly Rs.50K a month. A good 40-45% of which goes towards the fixed costs such as installments while another 20-25% goes towards the variable costs like fuel. Thus the driver take-home income is around Rs 18-20K per month. Since the online cab aggregators started focussing on profitability and reduced the incentives the take-home incomes of the drivers have dropped drastically. But they still continue to earn higher than the offline counterparts, who earn about 15-18k a month.

Cab Aggregators see a fall in driver cancellations in OND-17

The online cab industry has saw high driver side cancellations in the first half of 2017. This led to a fall in the consumer booking experience. The online cab aggregators hence took strict actions on cancellations by imposing hefty fines on the drivers, which led to a decline in cancellations in Q4’17. This is good news for the industry as it will boost the consumer satisfaction.

Driver Incentives stabilize after the decline over the last few quarters 

The online cab industry saw a consistent fall in the driver incentives over the last few quarters. With the raised focus on profitability, the players slashed drivers’ incentives resulting in non-serious drivers leaving the platform. The OND-quarter saw some stability affirming the closure of the cleansing period of the industry. The players have thus been able to provide value to the serious drivers in their platforms.

Driver Incentive online cabs India

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