Cab drivers run out of options to stay on road as banks starting loan recovery process

BENGALURU: Being forced to drive with one foot firmly on the brake — that may be how a number of drivers attached to popular cab aggregator platforms such as Uber and Ola felt when they started receiving calls from loan recovery agents and local money lenders to repay loans every month. Nearly six months after India announced its first lockdown to curb the spread of the Covid-19 outbreak, demand recovery in the ride hailing, office cab and tourist taxi sectors is still dismal. For thousands of cab drivers across the country, this means earning a profit is still not possible even if they return to the streets. Ola claims it has 2 million driver partners on its platform. “If there is no business, how are we supposed to earn and pay our EMIs?” asked Tanveer Pasha, head of one of the largest ride-hailing drivers’ unions in Karnataka. “We have not heard of any cabs being repossessed yet, but drivers have started receiving calls from agents asking them to start paying their EMIs from next month.” The Supreme Court is expected to hear a case on extending loan moratoriums on Thursday, but a small number of cab drivers and owners across cities have already demanded an extension of the loan moratorium over the past week. They have also sought state aid and waiver of interest on loans.78030102 The estimate of recovery in the cab hailing sector, which has among the largest fleet of cabs in the country, range from 30-50% in cities such as Mumbai and Hyderabad. But in Bengaluru, business has recovered by just 10-15%, while the recovery in Delhi is 25%. This means most cab drivers who had left the large metros when the lockdown was announced have yet to return. Those who have come back are quickly realising that it may not have been worth it. A Bengaluru-based driver told ET that he is only able to do 3-4 rides a day, the earnings from which do not even cover his expenses. “Earlier, I had leased my car to a driver, while I worked as a chauffeur in an MNC. Now, I am driving the car myself and still digging into my savings,” he said. Insiders at the leading ride hailing firms told ET that while companies are engaging with all stakeholders — banks, non-banks, the Reserve Bank of India, the government and drivers — there is little they can do to boost driver earnings till demand recovers.

from Economic Times https://bit.ly/35qFlOX
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