Earlier in the last month, Uber decided and sold their operations to the Didi Chuxing which is the favourite transportation network in China. Now Uber is planning to raise in India by giving some tough competition to Ola.
As per the sources and analysis, Currently Uber cannot take chances to afford in losing out in India and the company is looking to free-up all the possible ways to give harder fight with the India’s Taxi transportation company, Ola.
Ola is having the market share about 50% when compared with the Uber which is having only 26% in India and has estimated $40 million of cash each month. CEO of consulting firm RedSeer says “The battle for taxi market in India will become lot more severe and will only make it tougher for Ola in the coming days.”
He also mentioned that Uber has given up on China and for sure the company will concentrate on Indian market where the margin of gaining is more. RedSeer reports that the mobile application of Chinese cab market is 6-8 times bigger than India.
One of the Investor from Ola speaks about this recent things and says that Uber is acquiring Ola is not very far, and the possibilities are there in future as global market has started to unite. Uber is also making plans for the public listing and would like to ward off the rivalry by merging or acquisition, he added.
Over 102 cities, the India cab aggregation market enjoys 1.2 million rides per day. Ola is having 3.5 lakh cabs and 1 lakh autos in their platform and looking forward to doubling the number of cabs by the end of the financial year. Uber service is available in 27 cities in India which are more than any other countries outside the US and China.
Uber Technologies which had raised $3.5 billion from Saudi Arabia’s Public Investment Fund during the first week of June has already stated that it is likely to invest a substantial portion of this fund in Indian operations. Uber enjoys an average of 5.5 million rides a day globally.
The rivalry among Ola and Uber which has faced an ugly turn by making accusations in the courts. Uber has litigated Ola for Citing that the latter was damaging the revenue interests with the false bookings. In the same way, Ola filed a case on Uber stating that Uber was breaking the rules of the land.