Here is bad news for all the people who regularly use cabs for traveling. Both Ola and Uber are now planning on increasing the fares.

But worry no more, because very soon you’ll be the hapless someone barraged with high prices and no refuge. According to the reports, it is known that both Ola and Uber are now aiming at increasing the fare and cutting the conventional incentive for their drivers.

The companies have already spent a lot in getting the word out, making a customer base and advertising themselves, now it’s time to make money. It is also said that both the companies are aiming to introduce strict regulations to monitor the fakes and frauds committed by drivers.

“Subsidies won’t last forever, and customers need to slowly get used to it. This is a step in that direction,” said a person briefed on Uber India’s plans.

It also seems that the companies aim at improving ‘unit economics’, or the amount of money they make or lose for every passenger, as the growth rate in large cities plateaus and the two companies dig in for the long haul.

According to investors and analysts tracking the ride-hailing app business, Ola and Uber each burns $30-40 million every month.

Here is the detailed statistics of how Ola and Uber have cut driver incentives based on number of trips:

So guys rather than spending lots and lots of money on cabs and taxis, buy a new car. What do you say?

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