LPG Price Hikes Impact Ride-Hailing Services and Kolkata Shuttle Buses
Rising LPG prices are impacting ride-hailing services across India, including Uber, Ola and Rapido, while Uber has discontinued its Shuttle service in Kolkata. These developments come amid broader economic concerns, including potential disruptions to fuel supply chains due to tensions in West Asia and upcoming state elections.
LPG Price Increases and Ride-Hailing Costs
A surge in LPG prices is directly affecting the earnings of drivers operating on ride-hailing platforms. In Bengaluru, auto LPG prices rose sharply from Rs 59 per litre on February 28 to Rs 89 per litre by March 10. Drivers report that this increase threatens their daily income, particularly for those renting autos who already operate on thin margins. Some auto LPG stations in cities like Bengaluru and Chennai are experiencing supply shortages, leading to longer queues at CNG pumps.
Uber Shuttle Service Discontinuation in Kolkata
Uber has discontinued its Shuttle services in Kolkata as of April 2, 2026. This decision impacts approximately 30,000 commuters traveling to Sector V, New Town, and Rajarhat from areas like Joka, Maheshtala, Kamalgazi, Howrah, and Dunlop. The service utilized over 800 buses, with bus owners reportedly being paid around Rs 2500 per trip. Ridership had declined in recent months, with seat occupancy rates ranging from 40% to 50%.
Uber stated it is strategically shifting its focus towards Employee Transportation Services, citing higher demand in that segment. Unused subscriptions will be refunded to Uber credits within seven working days, and support services will remain available for pending payments and queries.
India Backs New Ride-Hailing Service
In an effort to challenge existing ride-hailing giants like Uber and Ola, India is backing a new ride-hailing service that will share profits with drivers and charge no commission.
Uber Shuttle Service Discontinuation Nationwide
Uber has similarly discontinued its Shuttle services in other cities. The service was discontinued in cities after March 27.
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