Ride-Sharing Business Hit Hard In COVID-19 Era, To Rebound In FY22

Ride-sharing or ride-hailing services, call it whatever you will, that have been hit hard in the COVID-19 era would get to see business return to its normal state only next year, reports state.

The demand for ride-hailing services in India are expected to drop by 70 percent in FY21, the effect due to COVID-19 and the restrictions that ensued. The number is then expected to bounce back in FY22 by up to 80 percent.

Since March-end, shared mobility has taken a big hit due to restrictions put in place to prevent the spread of the virus and also due to fear among the masses.

Although the government has recently announced that taxis can carry passengers, since most people have opted to work from home, the number of rides have plummeted.

Drivers in the ride-sharing sector in the COVID-19 era do not see more than four or five rides a day. This is despite them logging in more hours than they did prior.

Drivers are also worried about costs rising because of increasing fuel prices and the fact that they have to keep masks and hand sanitiser on board at all times. Also, popular features such as Ola Share and UberPool might not return anytime soon.

With two-wheelers not allowed to have a passenger, two-wheeler taxis like UberMoto and Ola’s bike-taxi might very well cease to exist, further resulting in job losses.

Also, people are afraid of contracting COVID-19 by going on shared transport and have decided to buy their own vehicles, as June auto sales suggest.

Over 1.16 lakh passenger vehicles were sold last month in the domestic market. In May it was 36,697 units. Two-wheeler manufacturers sold over five lakh units during June.

Other sectors thriving during such testing times are vehicle leasing and subscription. Reports state consumers are evaluating options to meet their needs. It is suffice to say that ride-sharing in COVID-19 era is in for a major overhaul.