Ola takes on Uber in his biggest market outside America

Ola, who is based in Bangalore, has been licensed to operate in the city, said London's transport regulator Thursday. It is now recruiting drivers before launching in late summer or early fall.
The move into the British capital is a great opportunity for Ola.
London is one of five global cities that account for nearly a quarter of Uber ( UBER ) reservations with Los Angeles, New York City, San Francisco and Sao Paulo.
The competition in the city is warming. Bolt, formerly called Taxify, returned to London last month. Captain, a French startup supported by BMW ( BMWYY ) and Daimler ( DDAIF ) [1[ads1]9659002]

But Ola, a power plant in India that also expands in Australia, New Zealand and other British cities, poses the greatest threat.

The company, which already has 10,000 drivers in British cities such as Liverpool, Reading and Bristol, is willing to compete at the expense.

While prices are to be compared with Ubers in the long run, Ola plans to offer discounts when it first enters the London market. It will also give motorists a bigger cut on their trips, which can help with recruitment.

The arrival of companies like Ola can in the short term push Uber, analysts at Morgan Stanley said in a note last month.

Uber's race in London has not been easy.

The city gave Uber a shock in 2017 when it refused to renew its license and said the Company was not "fit and proper". Uber appealed the decision and was later allowed to operate for 15 months.

Shorter licenses that span months, not years, have since become the norm for riders. Ola's license also runs for 15 months.

Source link

Back to top button