NEW DELHI: Homegrown cab aggregator Ola Cabs is taking on rival Uber in yet another foreign market, with the firm announcing on Tuesday that it plans to expand into the United Kingdom. The firm had made its first international foray early this year when it launched services in Australia.
Making the announcement, Bhavish Aggarwal, co-founder and CEO of Ola, noted that the UK is “one of the world’s most evolved transportation markets”. “(It) 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,” he added.
The taxi calling app has obtained licences to operate in South Wales and Greater Manchester, and will launch operations in South Wales by September. According to company officials, Ola is eying a pan-UK presence by the end of 2018. Aggarwal also said Ola would continue its engagement with policymakers and regulators to expand further and build a company embedded in the UK.
Ola, meanwhile, might have an advantage over its rival Uber in its newest market due to the structure of its platforms. Unlike the latter, Ola’s UK platform will offer passengers the option to hail private hire vehicles (PHVs) as well as local ‘Black Cabs’. By incorporating local Black Cabs that operate on UK roads, Ola is aiming for a more diverse service than its rival’s.
Uber has also come under some scrutiny recently over passenger safety, with even bans on the cab operator instituted in a few UK cities. The firm had had to go through a legal battle to keep hold of its licence to operate in London. Uber and Ola are both backed by Japan’s Softbank and already compete in India.
Ola’s overseas expansion has been quite rapid, with the firm already present in seven major cities in Australia, with over 40,000 drivers registered on its platform since its launch. The company is now inviting drivers in Cardiff, Newport and Vale of Glamorgan in South Wales to register with Ola and get an introductory commission rate of 10 per cent for PHVs and 5 per cent for metered taxis.