Uber claims drivers may earn Rs 2,200 per month more with fuel price-linked fare mechanism

Mumbai: After a 12-day strike by drivers of cab aggregators Uber and Ola over lower earnings due to fuel price hike, cab aggregator Uber India on Thursday claimed that its fuel price-linked fare mechanism will increase gross earnings of its drivers by Re 1 per km. This, on a monthly basis, will lead to a net additional earning of up to Rs 2,200 for an 8-hours driving, Uber claimed.

The announcement came days before the strike threat on 18 and 19 November that the drivers had given to the management after their 12-day strike last month. Given the impact of rising fuel prices to their net earnings, Uber drivers have demanded a fuel-price linked fare mechanism which the company has agreed to, Uber said in a statement.

Representational image. PTI

"The mechanism is first being rolled out in Mumbai and we estimate it will increase gross earnings of driver partners by Re 1 a km. Those who drive around 8-hours a day, this is estimated to translate into a net earnings increase of Rs 2,000-2,200 a month," Uber claimed in the statement.

The 12-day strike was called off on 3 November, following assurances from the aggregators and the state administration that the cab aggregators would prepare a new fare chart on price-per-km basis by mid-November, which will take into consideration the rising fuel prices.

Uber is also working towards providing drivers access to health and life insurance and micro-loans and a host of other benefits aimed at improving their welfare, it had said.

Since the beginning of 2018, fuel prices have risen sharply amidst a global surge and a free-falling rupee.

--With PTI inputs