Chennai drivers to boycott Ola, Uber over 25%-40% commission fees starting Saturday

Auto and cab drivers in Chennai are set to begin an indefinite boycott of ride-hailing services like Ola and Uber starting Saturday, February 1, 2025, in protest against high commission rates charged by these platforms. Drivers are voicing concerns over commissions that range from 25% to 40%, which they claim significantly diminish their earnings. The protest stems from long-standing frustrations about the financial strain caused by these fees, and drivers are seeking an alternative way to operate that offers more sustainable income.

In response to the high commission rates, drivers have turned to Namma Yatri, a platform that charges a fixed daily subscription fee instead of taking a percentage of the fare. This system is preferred by many drivers as it provides more predictable and manageable costs. Additionally, auto drivers unaffiliated with any aggregator app have introduced a new fare system. Their proposed fare structure includes a base fare of Rs 50 and Rs 18 per kilometre. These measures are aimed at reducing reliance on aggregator platforms and bypassing the commission-based pricing model.

The demand for a fare revision has been ongoing for more than 12 years, with drivers citing a Madras High Court directive that recommended fare revisions. However, the state government has not yet acted on the directive, leaving the fare revision proposal in limbo. Zahir Hussain A, the coordinator of the Confederation of Drivers’ Unions in Chennai, explained that the fare revision proposal is still awaiting cabinet approval. The delay in revising the fares, coupled with the high commission rates, has caused increasing dissatisfaction among drivers, who argue that they are unable to sustain their livelihoods under the current conditions.

In addition to the commission rates, drivers have expressed frustration over the lack of enforcement of official fare structures. They claim that the high commissions from ride-hailing apps sometimes force them to charge passengers more than the app-generated fare estimate, leading to conflicts and dissatisfaction. To address these issues, drivers are planning to operate through other platforms that do not rely on commission-based models and are determined to continue their strike until their demands are met.

The boycott has generated mixed reactions from the public. While some commuters have expressed concern over potential fare hikes due to the new independent fare structure, others have pointed out that auto drivers in Chennai have historically failed to adhere to the fare guidelines set in 2013, even before ride-hailing services became widespread. Many passengers have experienced overcharging, particularly those unfamiliar with the city’s fare system. As the strike begins, it is expected to disrupt Chennai’s ride-hailing services, with commuters potentially facing challenges in finding available rides. The Tamil Nadu government’s response to the strike and its decision on fare revisions will be key in determining how the situation develops in the coming days.