Understanding Uber’s Absence in Goa – The Economic Reality

Uber is not banned in Goa; it has simply been mathematically eliminated.

“Tourists often wonder why Uber is missing in Goa. The explanation is not rooted in policy but in simple mathematics.” This is how Lokesh Ahuja, a business strategist and IIM alumnus, initiates a thought-provoking LinkedIn discussion that is resonating beyond just the corporate world.

Ahuja’s analysis of the missing ride-hailing service in Goa does not rely on governmental restrictions or outdated regulations. Instead, it focuses on local economic realities and significant electoral considerations.

The Economic Landscape

Consider the statistics: Goa is home to approximately 24,000 taxi drivers, most of whom are the primary earners for families averaging four members each.

This translates into roughly 100,000 individuals reliant on the taxi industry. However, these drivers fulfill a dual role. “Drivers also function as commission agents, directing tourists to accommodations, cruises, shops, and local eateries,” Ahuja elaborates. Their wages affect the entire tourism ecosystem.

When taking this into account, the number of lives influenced by this informal network soars to around 200,000.

The Political Implications

Now, let us factor in politics. An estimated 75% of this demographic are likely eligible voters, tallying up to 1.5 lakh votes, which is more than one-tenth of Goa’s total electorate. Ahuja asserts, “No politician wants to risk that.” The equation is clear: lose 1.5 lakh votes in exchange for zero gain.

Why is this gain zero? The locals in Goa are not demanding the services of Uber. With a staggering rate of 882 vehicles per 1,000 residents—four times the national median—many locals prefer to drive themselves. The only individuals who express a desire for ride-hailing services are tourists, who, as Ahuja succinctly observes, do not participate in elections.

The Clear Implication

The message is unmistakable: introducing Uber isn’t merely an economic disruption—it could equate to political disaster.

Future Changes on the Horizon

The current situation may evolve. An ageing populace, a shift towards nuclear family structures, and a growing demand for convenience could rekindle local interest in taxis. But for now, as Ahuja describes, the ‘cab wars’ remain “parked,” leaving Uber on the sidelines.

Ahuja concludes, “Goa does not require policy alterations. What is needed is a change in the underlying mathematics.”