After commission, GST and tax deduction, here’s what Ola/Uber drivers make

The cab drivers have no platform to raise their grievances though the aggregators take commission from them for each ride booked through the taxi-hailing apps.

Synopsis: Drivers operating taxis for online cab aggregators often make news for the wrong reasons. However, they, too, have a tale to tell — how they are left with very little money after each ride. It is a tale that people seldom listen to. 

You are wrong if you think Ola and Uber cab drivers charge you exorbitantly. Online cab aggregator apps pay the drivers barely half of the fare, according to ‘driver partners’.

Drivers that South First spoke to said they pay 25 percent of the fare as commission, and five percent each as tax and GST. They said if they charge a passenger ₹1,000, they barely get ₹400, while the aggregators make money.

Hanamanthu, a 33-year-old driver, has been driving a cab for almost 15 years. “I have been riding cabs using the Ola app from the city to the airport. Usually, I wait opposite the Esteem Mall in Hebbal as a lot of people come here and book the cab through these apps,” he said.

Shedding light on the operation, he said the apps typically shows ₹1,000 as the fare to the Kempegowda International Airport at Devanahalli from the city.

“However, after the ride, we take only ₹400 home. The app deducts the commission and taxes. Additionally, we pay a toll of ₹115 while heading towards the airport, and ₹60 while returning. If we park the car expecting another ride, we have to pay ₹150 as a parking fee for just seven minutes.  The fee increases for additional minutes,” he explained.

These “cuts” are applicable in other cities as well.

Why GST?

Vijayan, a 38-year-old driver, has been driving a cab for over a decade in Chennai. “When a customer books a ride from Anna Nagar to Chennai Airport, the fare displayed is around ₹600 to ₹700. But after the ride, I receive only ₹400 to ₹450,” he said.

The driver said he had to pay ₹150 as a parking charge for just ten minutes at the airport. “I had to return without passengers several times because of this high parking charge.”

Ramesh, also from Chennai, questioned the GST deduction. “They say GST is charged to passengers, but why are we seeing deductions on our side too? No one explains this properly. When I ask other drivers, they’re equally confused.”

Another driver in Bengaluru said the aggregators pay them ₹10 per kilometre as taxis operating for Karnataka State Tourism Development Corporation are paid ₹24.

The driver, who identified himself only as Reddy, said some passengers helped them. “As soon as they board the vehicle, I request them to pay me instead of transacting the amount through the app. Those who understand our plight, cancel the ride on the app, and pay me,” he said.

No more incentives 

The drivers were paid handsome incentives when Ola and Uber entered the Indian market.

Pradeep Gowda (36) a cab driver from Bhadrappa Layout near Hebbal, said they got ₹5,000 as an incentive on completing 10 or 15 rides.

“The amount is still the same but the number of rides required for the incentive has gone up. We had to complete 50 rides a week to get the incentive. Is it possible to complete 50 rides in a week in this traffic? It is practically impossible for drivers to work round the clock to complete these many rides,” he said.

Grievances unheard

Many Ola and Uber drivers claimed that there were no offices to redress their grievances.

Gowda said the companies earlier had their offices in the city. “There used to be a company representative with whom we could raise our issues though not much had been done. Now, even the offices do not exist,” he said, adding issues — mostly regarding passengers and rides — are now raised through the customer care section.

Ola did not respond to South First‘s queries e-mailed to it on 28 March. Uber responded with an automated e-mail, which did not address the questions.

Welfare board for gig workers

Meanwhile, the Karnataka government has decided to set up a Gig Workers’ Welfare Board.

The decision was made after Chief Minister Siddaramaiah and a few of his cabinet colleagues met the Leader of Opposition in the Lok Sabha, Rahul Gandhi, on 3 April.

According to the plan, the welfare board would collect a 5 percent cess from the aggregators, while the government would provide the remaining required amount.

The board’s functions include registration of gig workers and aggregators, monitoring the regular collection of welfare fees, implementing and monitoring general and social security schemes of gig workers, and making recommendations to the government to administer such plans.

Additionally, the board must coordinate with the associations of gig workers, form, implement, and review schemes for gig workers of specific categories like women, persons with disabilities, etc.

The board can also seek data about the gig workers’ work from the aggregators.

Tax deducted, no filing of I-T returns

Incidentally, most of these drivers don’t file income tax returns. “I have never filed I-T returns on tax deductions because I am not aware of it. I have seen my colleagues take somebody’s help to file their returns. They are charged another ₹500 to ₹1000 to file the returns,” driver Ramesh said.

The revenue generated by operating cabs falls short of the drivers’ needs. “The money we earn is just sufficient for our food and fuel. Forget saving up for the future. We even miss paying our car EMIs due to inadequate income,” he added.

Until 2022 in Bengaluru, a social enterprise helped drivers file their I-T returns. Taxi drivers’ associations, too, created awareness about the need for filing returns.

Tanveer Pasha, President of Ola and Uber Drivers Association, said the social enterprise, Cab Dost, had closed down. “So, the new as well as some old drivers don’t know whom to approach for filing their returns,” he said.