I Wonder…

The recent stand off between the Drivers of Ola & Uber and ride hailing aggregator, I feel is just the precursor of things to unveil over the next couple of years. Take the Taxi Aggregators for instance who have splurged “investor” funds to “capture” the market by paying/promising to pay “high” entrepreneurship value to the drivers while giving the customer dirt cheap rides.

I feel that both Ola & Uber will face rough weather. Unless their “Investors” agree to increase the waiting period and dump more cash to burn we are in for a stand off. It is going to be a classic “Catch-22”. Indian Customers do not like to pay more than what they get used to and the “false” promises made to Drivers that they can earn more than ₹80000/- per month none of which will be a long term reality.

The murmurs of dissent has already started at both the Drivers & Customer end. Ola & Uber will definitely have to increase their share if they have to catch the break-even band-wagon. It would be interesting to see what strategy these Companies are going to adopt. Some promoters were smart and were able to exit and are laughing their way to the bank. But would all the Tech Startup entrepreneurs be able to do so. That remains to be seen…something sometime is going to crack…