Will Ola Cab's New Initiatives Fix The Ride Cancellation Issues?

The ride-hailing business, Ola, announced on 21 December that it will begin showing its drivers the rider's approximate drop location and payment mode in order to reduce the number of ride cancellations.

Ola co-founder and CEO Bhavish Aggarwal said in a tweet: "We're taking steps to fix this industry wide issue. Ola drivers will now see approx drop location and payment mode before accepting a ride. Enabling drivers is key to reducing cancelations."

However, some social media users highlighted the fact that apart from disinterest in going to a specific place, this would be still another cause for the drivers to cancel the journey if they are displeased with the mode of payment.

There is an apprehension that this new initiative by Ola would leave riders completely at the whim of drivers. While responding to Aggarwal's tweet, one social media users wrote: "So now the drivers won't have to call before cancelling, they will directly cancel."

Ride cancellations by drivers is not a new problem. Drivers claim that Ola takes a few days to process the driver's earnings if the payment has been made through Ola Money. Many drivers have said that they need cash in hand to meet their ends, refuel and maintain the vehicles, and for other needs.

While enquiring about where the customer wants to go before the ride starts, some drivers also request the passenger to change the payment mode from e-wallet to cash.

According to a report, a member of the aggregator driver union said: "Usually, the drivers at the end of the day have very little cash in hand as most payments happen via e-wallets. This money gets credited into their bank account anywhere between 24 hours or at times at end of the week. Thus they nowadays prefer cash rides."

Meanwhile, Ola’s competitor Uber said in its blog that drivers do inquire about prospective passengers' destinations over the phone.

The blog states: “You pull out your phone, request an Uber and a driver accepts the trip. All is going well. Then your phone rings. It’s the driver, and they come straight out with the dreaded question: “Jaana Kahan Hai?” Depending on your answer, you might soon find yourself having to request another car.”

“If you are a regular Uber rider, I expect you have had one or more of these experiences of late. Along with long arrival times, driver-initiated cancellations like this are no fun. And not just for you, the rider. Drivers want to be earning while they are on the platform. They don’t want to turn down jobs either,” it added in the blog post, entitled—Improving the Uber experience for riders and drivers.

Anand Kute, leader of the aggregator cab drivers’ union said earlier that “as long as fares aren’t rationalised, drivers will continue to avoid long-journey rides. They earn less on longer journeys and on top of that there are barely any incentives.”

As reported, some drivers also alleged that they were fined between Rs 500 and Rs 1000 for cancelling a ride. Furthermore, fuel prices have risen dramatically in recent months, making long-distance ferries in heavy-traffic areas unfeasible.

All things considered, it appears that reducing ride cancellations may take more than just displaying the rider's destination and mode of payment. It might also not be for just one company to solve the problem, and may well require an industry-wide solution.