In a significant development that could reshape Chennai’s urban mobility landscape, thousands of auto and cab drivers have launched an indefinite boycott of ride-hailing majors Ola and Uber starting February 1, 2025. The protest, led by Urimaikural Ottunar Thozhirsangam (Urimaikural drivers trade union), centers around excessive commission rates and concerns over driver safety protocols.
The boycott comes after months of unresolved tensions between drivers and the ride-hailing giants. On January 27, the union formally notified both Ola and Uber of their intended action, citing persistent grievances over commission structures that reportedly take up to 30% of their daily earnings.
“The current commission rates are unsustainable for drivers who are already struggling with rising fuel costs and vehicle maintenance expenses,” says K. Manikandan, President of the Chennai Transportation Workers Alliance. “While we’ve attempted dialogue multiple times, these platforms have shown little interest in addressing our concerns.”
The protest has highlighted a growing divide in Tamil Nadu’s mobility startup ecosystem. Newer entrants like Namma Yatri and Taxina, which charge significantly lower commissions ranging from 5-8%, are gaining favor among drivers. Red Taxi, a Coimbatore-based company, has seized this opportunity by announcing zero commission charges for the first three days of February and offering attractive peak-hour rates of ₹25 per kilometer.
Industry analyst Priya Raghavan from TechCrunch South Asia notes, “This boycott could mark a turning point for Tamil Nadu’s mobility startup ecosystem. We’re seeing a clear shift toward more driver-friendly platforms, which could accelerate the growth of local alternatives to the established players.”
The impact on Tamil Nadu’s startup ecosystem could be substantial. Local startups are already developing alternative ride-hailing platforms with more sustainable commission structures. The state’s IT department reports that transportation-focused startup registrations have increased by 45% in the past six months, with many focusing on fair pricing models and driver welfare.
Recent data from the Tamil Nadu Transport Department indicates that over 75,000 drivers in Chennai are registered with various ride-hailing platforms, with Ola and Uber accounting for approximately 60% of the market share. However, this dominance could be challenged as the boycott gains momentum.
Driver safety has emerged as another critical issue. “Unlike newer platforms that prioritize driver security and provide comprehensive accident coverage, the established players have been negligent,” explains Zahir Hussain, General Secretary of Urimaikural Ottunar Thozhirsangam. “We’ve seen numerous instances where drivers faced difficulties claiming accident compensation.”
The timing of this boycott is particularly significant as it coincides with the release of the latest Fairwork India ratings, where both Ola and Uber scored zero points for working conditions of gig workers. The report, evaluating 11 digital platforms across five principles including fair pay and conditions, has added weight to the drivers’ demands.
In response to the brewing crisis, Ola posted a cryptic message on their driver app on January 31, stating “Big News, Coming Soon; Commission, In all your Ola rides,” while Uber has maintained silence on the issue. This communication gap has further fueled driver frustration.
The boycott’s implications extend beyond immediate transportation disruption. It signals a potential shift in Tamil Nadu’s startup ecosystem toward more sustainable and equitable business models. Local entrepreneurs are closely watching this development, with several planning to launch driver-centric platforms in the coming months.
