The Economic Times daily newspaper is available online now.

    Softbank-backed Ola seeks relief for drivers and taxi firms in India

    Synopsis

    Ola is also seeking the government's help to secure a 12-month "holiday" on car loan repayments to ease the pressure on drivers and set up a fund for those who have lost their daily income.

    OlaBCCL1
    The company also wants a support fund for ride-hailing companies and relief for large fleet operators.
    NEW DELHI: Indian ride-hailing company Ola, backed by Softbank Group, wants loan waivers for drivers and a delay in tax payments to make up for coronavirus-related lost income, according to a source and document seen by Reuters.

    India imposed a 21-day nationwide lockdown from Wednesday to limit the spread of the virus, which has infected more than 600 and claimed 10 lives in the country of more than 1.3 billion people.

    Ola has thousands of drivers in India, as does rival Uber Technologies, and wants short-term, interest-free loans for taxi aggregators to meet their working capital needs as well as a six-month delay to payment of certain taxes, according to a letter to India's federal think-tank and industry lobby groups.

    "Mobility as a public utility service is the worst hit during these stressed times," Ola said in the letter, contents of which were seen by Reuters.

    "The driver partners associated with ride-hailing companies who are dependent on such services for their daily livelihoods are already experiencing a near-complete loss of income."

    Ola is also seeking the government's help to secure a 12-month "holiday" on car loan repayments to ease the pressure on drivers and set up a fund for those who have lost their daily income.

    The company also wants a support fund for ride-hailing companies and relief for large fleet operators. While Ola and Uber provide livelihoods for thousands of drivers in India, those drivers are not deemed employees, which means they do not receive monthly salaries and several other employment benefits.
    SIDBI MSME Conclave 2024 |Register Now.
    ...more
    SIDBI MSME Conclave 2024 |Register Now.
    ...more
    The Economic Times

    Stories you might be interested in