Uber and Ola continue to clash for supremacy in India.
By Raif Karerat
WASHINGTON, DC: As the ride hailing market grows more crowded with each passing day, Uber and Ola, the two de facto leaders of the industry in India, both announced new services in an effort to further cement their positions at the apex of the pack.
Mere hours after Ola revealed they had raised $310 million in capital after a new round of funding, Uber announced a new category for hailing auto rickshaws that is debuting in New Delhi. The service is cash only for now and works just like hailing any other type of Uber vehicle. TechCrunch also notes it’s much like the rickshaw service Ola currently runs.
Uber has been running its services in New Delhi under a “no profit model” in the aftermath of the alleged rape of a passenger. UberAuto continues the policy, meaning passengers will not have to pay booking fees or a service charge on top of standard fare.
Meanwhile, Ola has been solidifying plans to launch a delivery platform using its fleet of vehicles, starting with groceries. The strategy emulates the Uber’s model in several foreign cities where the U.S.-based company has made the foray into logistics.
“Right now we are exploring opportunities to see how we can leverage the cars we have on the road to do deliveries as well, and groceries is one of the top sectors we are working out,” a top Ola executive, who declined to be identified, told The Economic Times.
The Bengaluru-based outfit is still actively searching for a partner to launch the service with, and is looking at tying up deals with brick-and-mortar retailers for grocery collection and delivery, the same executive disclosed. Ola may roll a pilot out as early as next month.
Ola remains the undisputed market leader with its presence in more than 40 Indian cities and towns, but Uber has focused on the nation’s largest cities and is making significant strides in expanding its client base. With 11 cities currently served, India is now Uber’s second largest operational territory behind only the United States.