The government of Mumbai wants 40% of Uber and Ola’s cars to become electric, and convert all their now diesel and petrol cars into electric powered cars by April 2026. They both would have to start converting as soon as 2021 to achieve results properly and by the deadline.
Although this is a perfect step for saving the environment, and with the stop in production of petrol cars by 2021, this will drastically affect Ola and Uber economy. Most Uber and Ola cars are privately owned by drivers, and most of them are low cost cheap vehicles from companies such as Hyundai or Maruti Suzuki. The cost of replacing even 40% of cars will be heavy, and will affect the drivers the most. Most of these drivers are low income generators, giving the two taxi companies the option to either supply the cars or the money themselves, or be forced to remove at least 80% of their drivers. Ola has already tried this, but with little success to due insufficient budget and infrastructure. However, this will be a significant help factor for the environment, as they consist of a significant part of the environmental polluting vehicles.
However, Mahindra company has been in the works of a deal with Ola and Uber to produce zero emission, electric taxis. Let us hope that these do come through.
What do you think? Will the government’s order be followed and will Uber Ola still retain it’s model, or will it follow suit of Mehru? Stay tuned for more.