Surge prising and higher travel expenses in Metro cities are a problem and also monopoly of Giants like Uber who had unlimited cash flow will pay extreme amount of payouts to the vendors. There sho...

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Surge prising and higher travel expenses in Metro cities are a problem and also monopoly of Giants like Uber who had unlimited cash flow will pay extreme amount of payouts to the vendors. There should be a regulatory authorities upon the system of travel which would not allow the pricing to go ahead to a certain extent and all other players are able to make business.

Surge & higher travel expenses.

Investor

Surge & higher travel expenses.- Grapevine

Auto driver was harassing the person because he took rapido bike for his office. When will this stop in bengaluru why auto drivers consider them as don of Bengaluru?

Today i saw auto driver harassing a person in bengaluru because he took rapido bike for office

Software Engineer

Do you think it would work? Would ola and uber forced to implement it?
There are offline cabs which charges way higher for airport pickup and drop.

Cab fare cap

Engineering Manager

I travel regularly, and today prices are 20 rupees higher for 8 kms on all the apps: Uber, Ola, Namma Yatri, and Rapido.

Has uber/ola/rapido increased prices ?

Senior Software Engineer

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Uber , AirBnb , SWIGGY, Zomato etc are "Comission" or "Bicholia" Companies. Why do they keep losing money? They should make money even if they are to provide attractive offers to drivers/delivery guys etc

Is it because they spent too much "Growing" and its impossible to make the money back?

How did this happen.

Naive question about some business models

Test Engineer

Swiggy is slowly becoming unusable. They have already increased minimum amount in Instamart for free delivery from 99 to 149 to 199 now. This is really becoming a problem. Is there any other alternative to this? They are slowly showing their true colours now that they are aiming profitability.

Swiggy FEE Mafia

Yeah. But that's the price you'll have to pay for convenience. They were always gonna start making money one day

Consultant

Sales

How is rapido going to make money through cab services ?

Management Consultant

I was at a friends place and it suddenly started raining heavily. I had to reach my girlfriends place ASAP. She was already very angry that I was not spending enough time with her. The problem was that I was not getting any auto on Uber or Rapido.

I stopped an auto and asked it for a ride. He quoted Rs 800 for a 4km ride. I was like, "Are you crazy?" 
I somehow negotiated it down to Rs. 500. But it made me wonder why is this city like this.

Like everyone is trying to scam you. Every one is a grifter, from your landlord to auto wallahs to the cops.

Have you faced such things in this city?

Why do people take advantage of you in Bangalore?

Uber guys also not getting Uber. 
 Such is reality 😪

Program Manager

1 year back all startups were losing money like crazy while all of a sudden everyone from Swiggy to Meesho to Unacademy are profitable or EBITDA positive.
Other companies which were profitable earlier have not shown a spike in profit.

Were these companies uselessly burning money earlier if they can just suddenly become profitable in 6-8 months

Profitable startups

Product Manager

Did anyone observe that surge/demand charges were being charged on blinkit??
I didn't see with Zepto.

This happened while I was ordering for the sake of secret santa.

Geography - Gurgaon

Blinkit and surge charges

Growth Manager

At this point it's just Boot Licking Delivery app founders.
How come the opinion of a sample size of 1000 *young people* who are not even gig workers, get to be representative of whether gig worker unions should have right to bargain wages.

Everyone knows how harsh and unsafe the working conditions of delivery partners/gig workers are. On top of it now these companies are squeezing their wages to become profitable.

Not trying to moral police folks who order food and groceries online(even I do it), but this is just not sustainable. Sometimes it just feels wrong someone is traveling 5+ kms just to deliver me food and the guy/gal is not even being compensated properly.

And the below article is definitely not journalism or even reporting.

Link to article: https://www.linkedin.com/posts/yourstory-com_most-indian-workers-say-no-to-gig-drivers-activity-7121039458933620736-qRVQ?utm_source=share&utm_medium=member_android

Another low from YourStory

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- Rapido, the bike-taxi startup, has reached a $1 billion valuation, becoming the latest Indian unicorn after securing $120 million in a Series E funding round led by WestBridge Capital.
- The new funding highlights Rapido's growing influence in India's mobility sector, challenging the dominance of Uber and Ola, and aiding Swiggy in its competition against Zomato in the food delivery market.
- Rapido's focus on two-wheeler transportation has allowed it to overcome challenges faced by traditional cab services, leveraging the widespread use of motorcycles and scooters in India's congested cities.
- Swiggy, which led Rapido's previous funding round, has found a valuable delivery partner in Rapido, enhancing work opportunities for Rapido's drivers and planning to increase its stake post-IPO.
- Rapido's latest funding round also saw participation from Khazanah, Malaysia’s sovereign wealth fund, marking it as the third Indian startup to achieve unicorn status this year, following Perfios and Krutrim. 

 Source: Techcrunch

Rapido Becomes a Unicorn with Fresh $120M Funding

Journalist

Damn, let me tell you how Ola has messed up the auto rickshaw industry! They came in acting all fancy, promising convenience and fair prices. But what do we get? Overcharging like crazy! Their surge pricing during peak hours is a complete rip-off. They take advantage of our desperation and squeeze every penny out of us. And who suffers the most? The hardworking folks who rely on auto rickshaws every day.

But it doesn't stop there. Ola's profiteering tactics have destroyed the earning potential of auto rickshaw drivers. They used to have control over their fares and make a decent living. Now, Ola dictates the prices and leaves the drivers scraping for scraps. It's just not fair! They've disrupted the whole system, and not in a good way. The drivers are struggling, and we passengers are getting ripped off left and right. Ola, you've turned a once reliable and affordable mode of transportation into a nightmare. Shame on you!

Ola didn't disrupt , it destroyed

Auto drivers are suffering, riders are suffering, company is in losses, shareholders are suffering. Who is winning ? Lol

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Paytm and juspay

This will be big! No more surge pricing now

Transport department has announced a uniform fare structure for all cabs, including those operated by Ola and Uber, by categorising vehicles into three classes based on the cost of the vehicle.

Karnataka government revises cab fares, including Ola & Uber

Uber & Ola Fares Fixed in Bangalore now!

There are essentially four parties in the startup economy:

1. The Consumer
2. The Enabler(read, Startup)
3. The Service Provider
4. The Investor

Now let's look at Game Theory motivations:

1. The Indian Consumer wants to minimise money spent per unit value extracted, the Western Consumer wants to maximise value extracted per unit money spent. (There's a massive difference.)

2. The Startup depending on the stage wants to maximise User Growth and Free Cash Flows.

3. The Service provider wants to maximise financial incentives.

4. The Investor is wants to maximise the XIRR of their fund. For this they need to reach a multibagger liquidity event.

Now let's look at what happens when:

1. The Consumer gets f'ed over: 

The startup attains pricing power through deep competitive moats allowing for monopolisation. They can jack up the prices to ensure nice FCF, greater rewards for Service Providers and great returns to their investors. (Think, Uber can charge anything to you now)

2. The Startup gets f'ed over: 

The users get bang for their buck, the service providers get good incentives, the investors push for higher growth but unfortunately the startup does not have enough capital to service their Cost of Operations through their unit economics, so they will either run out of cash or investor patience. Either ways, they are doomed. (Think every legit startup that failed)

3. The Service Provider get f'ed over: 

This is the likeliest scenario as they have the least power in this dynamic. Rewards will be reduced over time or made harder to achieve. They have no option because they got no option for sustenance. (Think any on-demand service providing app)

4. The investor gets f'ed over: 

Now imagine there is a startup that can balance the act very well. They have a service that users are willing to pay a margin on. They pay their service providers fairly and have decent unit economics. Now, the investor will do halla about destruction of shareholder value from little growth. (Is this the case with BluSmart?)

Maybe that's why building in India is tough.

Surge & higher travel expenses.

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