Travelling in Mumbai for commuters proved more difficult than usual in the overcrowded city last week, as disgruntled drivers for the ride hailing app Uber went on strike.
The drivers for the San Francisco-based company argue that they are not making enough money, and protested on the streets with placards bearing slogans such as "fuel rates are rising, your fares are sliding".
The strike was called off by the end of the week but it highlighted the major challenges Uber is facing in India, as competition has intensified with its homegrown Indian rival Ola, which dominates the market. The rivalry has driven fares down and means fewer customers for each driver, hurting their earnings. A group of drivers from Ola also went on strike in Mumbai.
"I think there are several challenges that India showcases in this particular industry and one of them is that the prime constituents, the drivers, are perhaps the most dissatisfied in the ride hailing segment," says N Chandramouli, the chief executive of TRA Research, a business advisory firm based in Mumbai. "It doesn't matter if it's Ola or Uber. They all started a few years ago with a huge amount of incentives. Many of them took the bait."
One such example is Raja Naidu. He started working for Uber a couple of years ago, taking a loan of about $10,000 to buy a car. But he says steep commissions and increased competition mean that he's struggling to pay off his loan.
"If unpaid, the bank will come and take away my car," he says. "I wish that someone would come and buy my car and I can be done with it. I thought I'd be earning a lot of money with Uber, but I have to drive long hours to pay my debts."
Uber, which launched in India in 2013, has hit back against the complaints.
"We are committed to ensuring that driver partners are able to use the Uber app to have a rewarding entrepreneurial experience with over 80 per cent who are online for eight hours a day, making between 1,500 and 2,500 rupees net daily after deducting Uber's 20 per cent service fee," a spokesperson for the company said.
"We met with a delegation of driver partners and continue to engage with driver partners on a one-on-one basis," Uber said. "We have heard their concerns and taken note of the feedback."
The firm added that some of its drivers in Mumbai and Pune "have reached out to us after they were forcefully asked to go offline by a small group of protestors".
There has been speculation that Uber might look at exiting the Indian market or merge with its rival Ola, after Uber hooked up with competitor Didi Chuxing in China. Softbank, which has invested in Ola, is Uber's largest shareholder. With more than a million drivers, Ola has more than double the number of drivers Uber has.
But during his first visit to India last month, Uber's chief executive Dara Khosrowshahi seemed committed to the Indian market. The potential is enormous, given the country's population of 1.3 billion and rising internet use. India is the second-largest smartphone market in the world behind China.
"I can tell you that our operations are not profitable today and if they were profitable then we would not be investing enough," Mr Khosrowshahi said in New Delhi during his visit. "That's the potential of India as far as our business goes. India accounts for more than 10 per cent of our trips and I expect it to account for a higher and higher percentage of our trips going forward."
It is not only India that is proving challenging for the company.
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Globally, Uber's losses rose more than 60 per cent last year to $4.5 billion.
The company is also grappling with legacy issues, after its co-founder and former boss Travis Kalanick stepped down last year, following a string of scandals.
These included a case in India where the medical records of a woman who had accused an Uber driver of rape were allegedly obtained by the company.
Suhail Nathani, the managing partner at Economic Laws Practice, based in Mumbai, thinks it unlikely Uber would sell off its business in India.
"Uber has invested a lot, they've built a great brand in India, but stranger things have happened," he says.
If Uber were to exit the country, another company would be likely to step in to meet the demand and the "market need", he says,
"This is the new normal, to have all the benefits that Uber or a taxi service of this nature brings. The model is here to stay."
But there are certainly issues that need to be addressed, Mr Nathani says.
"You can't lose sight of the fact that the employment opportunities have to be sustainable and viable, so if there is a certain cost associated with provision of a certain service, that needs to be met. The consumer who's now used to frequent availability at low prices, somebody's going to bear the burden in this situation."
He says that ultimately comes down to creating the right regulatory regime.
"The drivers need jobs, the consumers need the convenience and, quite honestly, the government needs to have a robust environment for this business. I'm sure they'll find a solution because many stakeholders have a lot of skin in the game."
India's ministry of transport did not respond to a request for comment.
There are drivers with Uber and Ola who say they are very happy with their job.
One of them is Sajid Shaikh who has been driving for Uber for about a year.
"I earn better money with Uber than I did when I was a private driver," he says, adding that some months he makes about 40,000 rupees – more than double what he would earn in his previous role. He often works 12 hour days, he says.
"Some other drivers are lazy and they don't want to work long hours. That's why they're not making good money."
The employment opportunities ride-hailing apps such as Uber generate in India are clearly critical to people like Mr Shaikh, despite the fact that many drivers remain disgruntled. And customers in India look set to continue to benefit, as fares are kept low by the fierce competition.
The five pillars of Islam
ONCE UPON A TIME IN GAZA
Starring: Nader Abd Alhay, Majd Eid, Ramzi Maqdisi
Directors: Tarzan and Arab Nasser
Rating: 4.5/5
Zayed Sustainability Prize
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Short-term let permits explained
Homeowners and tenants are allowed to list their properties for rental by registering through the Dubai Tourism website to obtain a permit.
Tenants also require a letter of no objection from their landlord before being allowed to list the property.
There is a cost of Dh1,590 before starting the process, with an additional licence fee of Dh300 per bedroom being rented in your home for the duration of the rental, which ranges from three months to a year.
Anyone hoping to list a property for rental must also provide a copy of their title deeds and Ejari, as well as their Emirates ID.
57%20Seconds
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Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
The Settlers
Director: Louis Theroux
Starring: Daniella Weiss, Ari Abramowitz
Rating: 5/5
MISSION: IMPOSSIBLE – FINAL RECKONING
Director: Christopher McQuarrie
Starring: Tom Cruise, Hayley Atwell, Simon Pegg
Rating: 4/5
The specs
Engine: 2.0-litre 4-cyl turbo
Power: 247hp at 6,500rpm
Torque: 370Nm from 1,500-3,500rpm
Transmission: 10-speed auto
Fuel consumption: 7.8L/100km
Price: from Dh94,900
On sale: now
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Dust and sand storms compared
Sand storm
- Particle size: Larger, heavier sand grains
- Visibility: Often dramatic with thick "walls" of sand
- Duration: Short-lived, typically localised
- Travel distance: Limited
- Source: Open desert areas with strong winds
Dust storm
- Particle size: Much finer, lightweight particles
- Visibility: Hazy skies but less intense
- Duration: Can linger for days
- Travel distance: Long-range, up to thousands of kilometres
- Source: Can be carried from distant regions
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COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
UK's plans to cut net migration
Under the UK government’s proposals, migrants will have to spend 10 years in the UK before being able to apply for citizenship.
Skilled worker visas will require a university degree, and there will be tighter restrictions on recruitment for jobs with skills shortages.
But what are described as "high-contributing" individuals such as doctors and nurses could be fast-tracked through the system.
Language requirements will be increased for all immigration routes to ensure a higher level of English.
Rules will also be laid out for adult dependants, meaning they will have to demonstrate a basic understanding of the language.
The plans also call for stricter tests for colleges and universities offering places to foreign students and a reduction in the time graduates can remain in the UK after their studies from two years to 18 months.
At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
THE BIO
Favourite car: Koenigsegg Agera RS or Renault Trezor concept car.
Favourite book: I Am Pilgrim by Terry Hayes or Red Notice by Bill Browder.
Biggest inspiration: My husband Nik. He really got me through a lot with his positivity.
Favourite holiday destination: Being at home in Australia, as I travel all over the world for work. It’s great to just hang out with my husband and family.
The National's picks
4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young
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The specs
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
How to vote in the UAE
1) Download your ballot https://www.fvap.gov/
2) Take it to the US Embassy
3) Deadline is October 15
4) The embassy will ensure all ballots reach the US in time for the November 3 poll
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
BORDERLANDS
Starring: Cate Blanchett, Kevin Hart, Jamie Lee Curtis
Director: Eli Roth
Rating: 0/5
OPTA'S PREDICTED TABLE
1. Liverpool 101 points
2. Manchester City 80
3. Leicester 67
4. Chelsea 63
5. Manchester United 61
6. Tottenham 58
7. Wolves 56
8. Arsenal 56
9. Sheffield United 55
10. Everton 50
11. Burnley 49
12. Crystal Palace 49
13. Newcastle 46
14. Southampton 44
15. West Ham 39
16. Brighton 37
17. Watford 36
18. Bournemouth 36
19. Aston Villa 32
20. Norwich City 29
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Company Profile
Name: Thndr
Started: 2019
Co-founders: Ahmad Hammouda and Seif Amr
Sector: FinTech
Headquarters: Egypt
UAE base: Hub71, Abu Dhabi
Current number of staff: More than 150
Funds raised: $22 million
COMPANY%20PROFILE
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