Can India’s Ride-Hailing Economy Survive The Fuel Shock?

The prolonged crude oil crisis due to the US-Iran war is raising bigger questions for Uber, Rapido, Ola Cabs and India’s ride-hailing industry

Experts believe that the mobility industry may eventually settle into a new equilibrium where total ride counts decline modestly while revenue per ride increases

Are these platforms ready to mitigate the fallout of the rising fuel costs, and will this inflation reshape urban mobility in the country?

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The prolonged crude oil crisis due to the US-Iran war is raising bigger questions for Uber, Rapido, Ola Cabs and India’s ride-hailing industry. Are these platforms ready to mitigate the fallout of the rising fuel costs, and will this inflation reshape urban mobility in the country?

The first signs of strain are already visible. Commercial vehicle drivers’ unions in Delhi-NCR recently called for a strike to demand an immediate fare hike amid rising operating costs.

“There is a threshold of tolerance beyond which consumption itself starts falling,” said Sriram Kannan, founder and chief executive officer of Routematic, an enterprise mobility company.

“There is a threshold of........

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