Uber, Ola suspend ride-sharing services in India as Covid-19 cases spike

Uber India and Ola Cabs have suspended their ride-sharing services in India as Covid-19 cases spike in one of the world’s most densely populated countries.

“We have suspended Uber Pool in India until further notice,” a spokeswoman for Uber told Tech in Asia, referring to the ride-sharing service. “We are determined to help reduce the spread of coronavirus in the cities we serve,” she added. The decision was made and implemented on Friday.

Deserted areas in front of Gateway of India and Taj Mahal Palace hotel are seen during a one-day Janata (civil) curfew imposed as a preventive measure against the Covid-19 coronavirus in Mumbai on March 22, 2020. Nearly 1 billion people around the world were confined to their homes, as the coronavirus death toll crossed 13,000 and factories were shut in worst-hit Italy after another single-day fatalities record. (Photo by Punit PARANJPE / AFP)

Tech in Asia had previously reported that the Covid-19 outbreak might lead Uber to suspend its ride-sharing services outside of the US and Canada.

Homegrown competitor Ola Cabs also said it is temporarily suspending its ride-sharing service until further notice as it steps up efforts to help curb the spread of Covid-19. “The temporary suspension of Ola Share services is an attempt to encourage social distancing for all cases of essential travel for citizens,” the company said in a press release.

India today has 415 confirmed cases of Covid-19, up from 360 yesterday, as well as seven deaths, the country’s Ministry of Health and Family Welfare reported. On Sunday, Prime Minister Narendra Modi stepped up measures to contain the pandemic by asking citizens to observe a day-long curfew. The government had earlier enforced social distancing and suspended or severely restricted mass transport as well as non-essential services.

Uber and Ola’s decision to suspend their ride-sharing services in India follows a similar move by Grab, which earlier halted its GrabShare services in Singapore and the Philippines. But unlike Grab, Uber and Ola have been unable to diversify their revenue streams beyond ride-hailing.

Ride-sharing is the preferred mode of cab-hailing in India and in other emerging markets due to the lower cost. Around 1.7 million rides per day are taken through Uber and Ola’s platforms in India’s top seven cities and 2.25 million nationwide, local consultancy firm RedSeer’s estimates. Uber, meanwhile, completes 14 million trips across the world each day, the company said.

Both Uber and Ola said they will support their drivers amid the suspension.

Uber said any driver or delivery person diagnosed with Covid-19 or asked to self‑isolate by public health authorities would receive financial assistance for up to 14 days while their Uber account is on hold. “We’ve already helped drivers in some affected areas, and we’re working to quickly implement this worldwide,” it said.

Photo credit: Uber

“Our Partner Care teams and Safety Response teams are available 24/7 for any concerns that may arise for driver-partners and customers, respectively,” said Ola, without indicating whether it will be providing financial assistance.

The suspension of some popular ride-sharing services comes as technology startups pivot to pursue profits instead of reckless growth.