Former Karnataka chief minister and Janata Dal (Secular) politician H.D. Kumaraswamy who had publicly supported drivers earlier this month when they hit the streets to protest against a fall in incentives offered by ride-hailing services such as Ola and Uber, has announced an investment of Rs 50 crore over the next two years into his venture HDK Cabs. HDK Cabs is an app-based cab aggregator platform which will roll out in a month in the state.
Tanveer Pasha, leader of a drivers' union, will be a member of the new company's core committee. Pasha said, “The platform will help drivers earn more and it will not be profit-oriented, but will focus on service. Kumaraswamy told us to form a welfare fund by pooling 6% of our earnings every month. This fund will be utilised to help drivers who are in need.”
He also added that more than 35,000 drivers had evinced interest in joining the new company. "The commission they will have to pay the company will be fixed at 10 per cent. Right now, Ola and Uber charge from 25 to 30 per cent as commission," he said.
Drivers would also be provided other benefits like there are plans to allot Rs 10 lakh for medical insurance per driver, from a drivers' welfare fund. Maintenance and insurance will be paid by the company, and profits shared with drivers.
Kumaraswamy also promised to provide housing for drivers if he comes to power. “I will consider group housing projects for drivers. If JD(S) comes to power, I will work to find comprehensive solutions for your problems,” he said.
When asked about the competition against venture capital-backed Ola and Uber, in Karnataka, Kumaraswamy added, “The venture is not meant to compete with either of them but for supporting “aggrieved drivers on humanitarian grounds.”
