After CCI Orders Probe, Fast Track Now to Drive Ola to Court?

Published: 08th May 2015 06:01 AM  |   Last Updated: 08th May 2015 09:38 AM   |  A+A-

CHENNAI: The metro’s own erstwhile call taxi market leader Fast Track is determined to continue definitive action against online taxi cab aggregator Ola Cabs after a petition filed by them against Ola for ‘predatory pricing’ and ‘unfair trade practices’ resulted in the Competition Council of India (CCI) ordering a probe.

"We will definitely continue measures against them through channels parallel to the CCI and we are in the process of initiating them," M Prabhu, Chairman of Fast Track Call Taxi Pvt Ltd., made it clear. The measures, he added, might include dragging the rival to the courts.

Fast Track’s petition against Ola’s holding company, ANI Technologies Pvt Ltd, at the CCI resulted in a probe ordered by the fair trade practice watchdog. The CCI order, dated April 24 and made public on Wednesday, stated that prima facie evidence pointed to Ola abusing its dominant position in the market.

CCI Orders.jpg“In view of the allegations projected in the information and the observations made as detailed, prima facie, the Commission is of the opinion that the conduct of ANI Technologies amounts to abuse of dominant position within the meaning of Section 4 of the Act,” the order said. According to the CCI, Ola’s business practices indicated “predatory pricing aimed to oust other players from the relevant market” since the company was “spending more money on discounts and incentives (apart from the variable costs it may be incurring) on customers and drivers compared to the revenue it was earning.” The CCI subsequently ordered the Director General of the CCI to conduct an investigation into Ola’s operations and, during the course of the investigation, the conduct of ANI Technologies’ officials and complete it within 60 days from the receipt of the order.

“We had observed in our petition that Ola is indulging in several unfair trade practices like predatory pricing,” said Prabhu. Fast Track is also alleging that Ola’s practices of providing incentives to drivers and charging very low tariff was a way of killing off competition, among other things.

The Bengaluru-based cab service, however, refused to comment on these developments.

Stay up to date on all the latest Chennai news with The New Indian Express App. Download now
(Get the news that matters from New Indian Express on WhatsApp. Click this link and hit 'Click to Subscribe'. Follow the instructions after that.)


Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on are those of the comment writers alone. They do not represent the views or opinions of or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp