Mumbai

Ola to waive lease rental for drivers

Ajeet Mahale Mumbai 26 March 2020 01:07 IST
Updated: 26 March 2020 01:07 IST

Unions say more help needed

To reduce the economic impact that will be felt by drivers amid the lockdown across the country, Ola Cabs has said it will waive the lease rentals for drivers who operate vehicles under its leasing programme.

The company offers a car leasing programme through its subsidiary, Ola Fleet Technologies, where drivers can lease a car for a daily rental amount ranging between ₹700 and ₹1,150. At the time of leasing, drivers need to pay between ₹21,000 and ₹31,000 as a refundable security deposit.

“Driver-partners who are currently in distress … will stand to benefit with the reduced economic burden during these times. Further, our benefits on insurance for drivers and their spouses against loss of income due to contraction of COVID-19 as well as other medical support during this time, will continue to be offered,” an Ola spokesperson said on Tuesday.

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Further demands

Unions of drivers working for app-based cab aggregators welcomed the move, but said a lot more needed to be done. “The lockdown has been a death knell to drivers across the country. Many have no other source of income. We want the companies to give all their drivers ₹10,000 as an interest-free loan, which can be deducted from their accounts once the lockdown is lifted,” said Shaik Salauddin, general secretary, Indian Federation of App Based Transport Workers.

Mr. Salauddin said they were also asking both Ola and Uber to reduce their commissions to 5% once operations resume, and the government to defer EMIs for loans taken on cars, and insurance payments by three to six months.

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