With the economy in India opening up almost entirely, ride-hailing platforms Ola and Uber are starting to see recovery close to pre-COVID levels, as more people step out. Both Ola and Uber have recovered in some of the top metros they operate in, however auto rides have increased substantially compared to car rides.
An Uber spokesperson told TNM that its mobility business is recovering strongly after it resumed operations in 83 cities across the country. “Our business was stronger in September than it was in June. Delhi-NCR has emerged as one of the top 10 global markets for Uber based on the number of trips taken in the month of September, with more than 1 million weekly rides,” a company spokesperson said.
Ola, too, says that it is now operating rides comparable to pre-COVID levels in several key cities. “As restrictions are easing, we see more people stepping out, which in turn has led to a strong upward trend in the ride hailing business as commuters look for trusted partners. With the assurance of regularly sanitised vehicles and precautions taken for in-ride safety, Ola is now serving rides comparable to pre-covid levels in many key cities,” an Ola spokesperson added.
With the number of coronavirus cases being on the rise in India, several people prefer taking cabs over public transport, to ensure physical distancing, which could also be a major reason for the uptick in ride volumes.
In terms of ride categories, low cost ride offerings like Uber and Ola Autos are seeing the highest demand. Uber said that autos are one of the key drivers of Uber’s business recovery, with cities like Delhi and Mumbai returning to 80% of pre-Covid levels, followed by cities like Jaipur and Chandigarh returning to almost 50% of pre-Covid levels.
“Recently, we also became the first ride-sharing company in India to introduce Auto Rentals in 6 Indian cities namely Delhi NCR, Mumbai, Chennai, Hyderabad, Bangalore and Pune. This growth augurs well for Driver-Partners because it means we can continue to create livelihood opportunities for them so that they can support their families,” Uber spokesperson added.
Ola, on the other hand, has said that it is also seeing an increase in outstation rides. “We see the emergence of new use-cases as people have started traveling outstation and expect growth to pick up in the coming weeks as offices gradually open and people step out in the festive season,” a company spokesperson added.