Saturday, January 14, 2017

Uber/Ola value proposition fast eroding

Over the last year, both Ola and Uber have began to increase prices and/or make consumer experience worse for those. Some observations are below. At this rate, both often charge for share bookings the same tariff as black/yellow auto and taxi, while not being much faster. Also, this is without offering a clear differentiation like passenger insurance, impartial dispute redressal etc. Guess this is the start of the end

When Introduced
Fare calculation
Transparent distance and time
‘Upfront fares’
Surge pricing display
‘x’ surge’ displayed transparently
Inferred from the upfront fares multiple-you need to calculate
Ride time fare
Rs 1/km
Rs 1.5/km
Pool/Share rides
Usually 50% of Uber Go/Ola Micro
Even 70%-100% of the fares
Pool/Share rides routing
Detours usually not much
Sometimes 30min detour to worsen the experience
Pool/Share rides
‘Express’ rides where you hop on/hop off routes like highway-now its like hailing cabs
Short distance rides
Perception that where regular cabs refuse/Ola uber will agree
With high min fares >=Rs 60, Uber/Ola will be costlier anyways
Payment via Wallets
Usually useful to avoid cash payments
Wallets like PAYTM side with Uber/Ola, so its better to use credit cards only

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