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The Sharing Economy and Rentals

Ride-Hailing: Uber, Ola and Rapido

Ride-hailing changed urban transport, offering convenience but raising questions about driver earnings, congestion and regulation.

The best-known example.

Model

Drivers use their own or leased vehicles, and platforms take commissions.

Surge pricing

Prices rise when demand exceeds supply, encouraging more drivers.

India

Ola and Uber compete with new entrants like Rapido, which popularised bike taxis.

Issues

Driver income, safety, congestion and regulation of bike taxis in some states.

A surge

On a rainy evening, fares double as more people request rides than there are drivers.

Assuming ride-hailing reduces traffic

It can add cars to roads.

Key takeaways
  • Ride-hailing uses commissions.
  • Surge pricing balances demand.
  • Bike taxis are popular but regulated.
  • Driver earnings and congestion are concerns.
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