Dear all, Thanks for the support, you gave me for my previous posts. In this post, I am going to talk about the two giants and their impact, if the GST is being levied on them. Now, let us get into the topic.

As a common man, I started to use Ola and Uber, as I felt it was cheaper and comfortable mode of transport. When, I started to use them, we can ride upto 4kms at just Rs29. So, it almost will equal the cost of 3 people travelling bus. So, I liked it and started to use it. Moreover, We need not bargain with the auto driver or taxi driver, as we can just pay the bill that is being shown to us. 

But, the fuel prices started to increase rapidly and these Ola and Uber services also started to increase their costs. I did not know, that Ola is taking around (approx) 25% of the amount as commission from these  rides.  For example, if we are paying 200 for the ride, the driver gets just 150 and remaining 50 goes to the company. so, the driver gets less. Of course, there are rewards for drivers, when they achieve their targets, but it may not be achieved daily as the drivers need to take care of their health also.

The drivers need to spend much on fuels as well. so, Incase if the GST is increased, this will become a huge burden on the drivers. These companies will find a way to take money from consumers and drivers, so that they will not be affected. Already many drivers have sold their vehicles and left this business and went back to their native. Still, I am not sure about how it will affect, but is just a rough estimate.

Even if we consider 5%, the ride that takes 200, will cost us 210 rupees. for each and every 100 rupees, we need to give 5 rupees. similarly, on the profit which driver gets, they might also end up giving some money for every 100 rupees. It might 2.5% from driver and 2.5% from rider or 5 for driver and 0 for rider, whichever be the case, it will definitely make this business dull. I am not supporting the companies blindly, but the chances of common man like me, using these networks will go tremendously down and the beneficiary drivers might endup losing their chance of earning. So, they need to consider these factors before bringing these rides under GST.