SoftBank-backed Ola said this will help in reducing the economic burden of its drivers even as it would continue to offer insurance benefits to them and their spouses if contracted.
Ride-hailing company Ola said it has waived off lease rentals for its drivers amid Coronavirus pandemic. SoftBank-backed Ola, which competes with Uber, said that waive off is for drivers “who operate vehicles owned by Ola’s subsidiary, Ola Fleet Technologies under its leasing program,” and will reduce the “economic burden during these times,” it said in a statement. Ola would continue to provide insurance benefits to drivers and their spouses against “loss of income” due to contraction of Covid-19 and other medical support. Ola drivers under the leasing programme can take a long-term lease for a car while the company would charge a deposit and a daily rental amount between Rs 700-1,150 based on the city and car model leased.
At the time of leasing, “Ola Fleet Technologies charges Rs 4,000 as non-refundable charge and Rs 21,000-31,000 as refundable security deposit depending on the vehicle type,” the company said. Amid the growing outbreak of Coronavirus in India, which has infected 519 people so far and caused 11 deaths, services of both Ola and Uber have been impacted. While Uber has suspended operations across India due to the lockdown, Ola has limited its service to support only essential services. Earlier the two companies had suspended their shared ride services Ola Share and Uber Pool due to Coronavirus.
Ola on Monday had announced setting up of a Covid-19 Fund for drivers in Australia to claim financial help for up to 14 days which will equivalent to “14 days worth of their individual average daily earnings on the Ola platform,” the company had said in a statement. Last week, Uber had also announced similar financial assistance for up to 14 days for its Coronavirus-diagnosed drivers or delivery people globally based on their average daily earnings over the past six months.