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Ola to challenge Uber in UK ride-hailing market

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"Indian taxi-hailing giant Ola is moving into the UK as it continues to challenge Uber around the world.

The company, which was founded in 2011, has 125 million customers and already operates in 110 cities. It plans to start business in South Wales and Greater Manchester.

Unlike Uber it will offer a choice of private hire vehicle or black taxi.

It says it is working with local authorities across the UK to expand nationwide by the end of 2018.

Ola says it will begin UK operations in South Wales in the next month.

This move is the first serious challenge in the UK to market-leading taxi-hailing app, Uber, which was founded two year's earlier than Ola, has three million drivers and operates in 600 cities in 65 countries.

Currently, Ola only operates in two countries, the UK will be its third, after starting its first operations in Australia earlier this year.

Both companies count Japan's Softbank as an investor, but the two already compete fiercely in India, although Uber pulled out of operating in South East Asia earlier this year.

Softbank is a major backer of the world's leading taxi-hailing apps, with investments in Chinese giant Didi and Grab, although it is not invested in Uber's chief US rival on its home soil, Lyft.

Scrutiny

Services such as Uber - often called "ride-hailing" or "ride-sharing" apps - at their simplest were designed to link drivers, via a mobile phone app, with people who they were prepared to give a lift to in return for a bit of petrol money.

As it has grown, Uber in particular has come under scrutiny over passenger safety and how it treats its drivers.

It has been engaged in court battles over whether it needs licensing, whether it is an employer or simply an app, and how much it should regulate its drivers and be responsible for passenger safety. It has been banned from some cities, and had to fight to keep its licence to operate in London.

It is particularly resented by licensed drivers of black taxis, for whom it takes years of work to qualify for their licences.

Ola will be the first app to link to both these, as well as individuals who offer private hire.

Apps in the UK that currently connect passengers with black taxis include Gett and mytaxi.

'Compelling service'

Ola's UK launch statement stresses its willingness to engage with the authorities.

It says it "seeks to lead the industry with its approach to passenger safety including Disclosure and Barring Service (DBS)-screened drivers".

Ola also plans to offer round-the-clock voice support and an options to share journey details with a passenger's emergency contacts.

Bhavish Aggarwal, chief executive of Ola, studied computer science in Mumbai and worked for Microsoft after that. He was 26 when he founded Ola in 2011.

He said: "The UK is a fantastic place to do business and we look forward to providing a responsible, compelling, new service that can help the country meet its ever demanding mobility needs.

"We look forward to our continued engagement with policymakers and regulators as we expand across the country and build a company embedded in the UK."

Ola's entry into the UK follows its launch in Australia in February 2018, where it now operates in seven major cities."

Source – BBC News

About the author

Philip Scott

Head of Equities, Director

Philip has worked as a Private Client Stockbroker for nearly 20 years, commencing his career in Operations with Rensburg Sheppards (now part of Investec plc) before spending 9 years with Killik & Co advising on and directly managing portfolios. He joined SI Capital in 2006 to head up the Private Client Advisory desk.

Philip is a regular contributor to local media commenting on stock market dynamics and is a Chartered Member of the Chartered Institute for Securities & Investment (MCSI). His RDR qualification gained special recognitionfrom the CISI for achieving the highest combined pass mark in the country for the Investment Advice Diploma in 2012.

“At SI Capital I enjoy being part of a talented team who collectively share the same desire to provide excellence in service.  My focus is to ensure that each client receives effective and optimal management of their assets.”

Philip lives locally, is married with 2 daughters and is an avid sports fan (if now predominantly from the sidelines).  His other interests include music and film.

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