Cab aggregators Uber and Ola have decided not to proceed with plans to expand parking spots and kiosks at railway stations, Business Standard reported.
The two companies are pausing the acquisition of additional parking rights since the return on investment has not been high, and because drivers have complained about the waiting time at stations.
“Unlike airports, railway stations are located at the centre of the city and only limited parking spaces are available in its premises,” a source told the paper.
Drivers prefer being mobile instead of waiting for hours at a railway station, since they can use that time to pick up new rides, the report said.
The two companies currently have parking spaces at railway stations in Mumbai, New Delhi and Bengaluru.
The demand at the railway stations has fallen below the companies’ expectations since people prefer prepaid auto-rickshaws and prepaid taxis.
“At times it is difficult for them (customers) to locate an Uber or an Ola cab. Many do not like lugging luggage while locating a taxi,” a source told Business Standard.
The Indian Railways charges the cab aggregators a fixed license fee for the demarcated parking spaces and booths.
At major stations, only 10 cabs are allowed to be parked at a time.
The Indian Railways earned about Rs 20 crore in 2018-19 from the parking spaces.