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Telangana Cab Operators Demand Ban On Ola Cabs

They said that Ola and other aggregators posed a threat not only to the safety of passengers, but also to the organized travel and IT industry of Hyderabad.
Hyderabad | 23rd February 2015
The Telangana State Cabs and Bus Operators Association (TSCBOA) on Monday demanded action against Ola Cabs and other 'aggregators' who had recently intensified their operations in the Greater Hyderabad limits.

In separate representations made to Deputy Chief Minister Mohammed Mahmood Ali, Transport Minister P Mahender Reddy and Transport Commissioner Sandeep Kumar Sultania, the Association members alleged that the city was facing a potential threat from some "aggregators" who wanted to indirectly sabotage the travel and IT industry of Hyderabad.

They said that the working model of Ola Cabs was similar to that of Uber, which had faced a nation-wide ban after the incident of rape in December 2014 in New Delhi.

"Their operations pose a threat not only to the safety and security of passengers, but also to the organized travel and IT industry of Hyderabad," TSCBOA President Syed Nizamuddin said.

Besides Syed Nizamuddin (Nizams Cabs), the TSCBOA delegation comprised of K Srinivas Rao, Aijaz Ahmed, Venkatesh Goud, Laxman Rao and others.

The TSCBOA members alleged that Ola Cabs was luring the drivers with unimaginable commissions.

"The amounts are so huge that many drivers and cab owners have started withdrawing their vehicles and services from regular duties to get them engaged with Ola Cabs. As it was noticed in the case of Uber, Ola Cabs too does not conduct any background checks for its drivers. It simply relies on the documents submitted by the drivers to the company. It does not even verify their addresses but depends on the addresses on which their bank accounts have been opened. It never checks the authenticity of those addresses," they alleged.

The drivers were being provided with iPhone 4s phones which have an Ola application that cannot be deleted. However, if the phone were to be switched off, the GPS would also get switched off. Therefore, there would be no way to track a vehicle in case a driver switched off the phone, said Nizamuddin.

While questioning the source of the huge funding for Ola Cabs, the TSCBOA alleged that the amounts being spent by Ola Cabs did not fit into any category of investments or spending. "They are simply dumping lakhs of rupees only to sabotage the existing travel and IT industry. The hundreds of IT companies have long-term contracts with regular operators like us in Hyderabad. Therefore, any disruption in the operations will not only hit our businesses, but will also affect the IT industry due to erratic fleet operations," it said.

Nizamuddin said that many drivers had fallen into the trap of commissions and incentives, and were giving up their regular sources of income. However, in order to earn more commissions, they are making multiple trips and working for 16-18 hours each day. Consequently, they were under huge stress, both physically and mentally.

"The sleep-deprived and stressed drivers are unsafe for themselves and others on our city roads," he said.

The TSCBOA alleged that the business module adopted by Ola Cabs and other aggregators was completely unethical and aimed at destroying the regular travel, IT and other related industries. It demanded stern and immediate action against such operators. (INN)
filed in:  Transport, Telangana
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