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|Uber rival Ola is launching in London next month
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|Author:||Sussex [ Fri Jan 31, 2020 10:07 pm ]|
|Post subject:||Uber rival Ola is launching in London next month|
Uber rival Ola is launching in London next month
Uber’s status in London is about to get a lot more complicated.
Indian ride-hail company Ola plans to launch in London on Feb. 10, the company said today. Ola received a 15-month license to operate in London in July 2019.
Ola is one of the world’s best-funded ride-hail companies, with roughly $3.8 billion raised from investors including SoftBank (also a major Uber investor), Tencent, and Chinese ride-hail firm Didi Chuxing (also a recipient of SoftBank money). That makes it a formidable competitor. Ola ranks among India’s most valuable tech startups.
Ola said in a press release that it will launch in London with more than 20,000 registered drivers. It plans to take zero commission on rides for the first six weeks. After that, the company said its cut would be “the best commission rate” in the market, though a spokesperson declined to share a specific figure.
Ola’s foray into London comes at a particularly bad time for Uber. Local taxi regulator Transport for London (TfL) declined to renew Uber’s license in late November 2019 over safety concerns. It was the second time in two years that Uber had its London license denied. Uber appealed the decision and is allowed to operate while the appeal is considered. CEO Dara Khosrowshahi reportedly met recently with TfL’s commissioner in an effort to resolve the dispute.
Ola already operates in several major cities in the UK, starting with Cardiff in August 2018 and expanded to include Birmingham, Bristol, Liverpool, and Reading. The company said it has completed roughly 3 million rides in the UK outside of London, with around 11,000 drivers. Ola says it has 2 million drivers registered to its platform worldwide and operates in more than 250 cities.
Other ride-hail companies courting Londoners include Bolt, an Estonian firm formerly known as Taxify, and Kapten, a French ride-hail app backed by Daimler and BMW. Both companies are spending heavily to make their services attractive to riders and drivers, a strategy that Uber pioneered as it expanded rapidly across the US.
Uber’s problems in London aren’t limited to its license and intensified competition. The UK Supreme Court is expected to hear a case this year on the employment status of Uber’s UK drivers. Previous court rulings deemed them “workers,” a third category of employment that exists in the UK with rights between those of an independent contractor and a regular employee. If the Supreme Court were to rule that Uber drivers are indeed workers, it could force the company to make significant changes to its business model or greatly increase its costs.
Uber could also be on the hook for a hefty tax bill if it is classified by the UK tax authority as a transportation provider rather than a technology platform. By one estimate, Uber’s unpaid VAT bill in that scenario would weigh in at over £1 billion ($1.3 billion).
|Author:||Sussex [ Sun Feb 09, 2020 6:27 pm ]|
|Post subject:||Re: Uber rival Ola is launching in London next month|
New rival Uber app launching in London on Monday
Ride-hailing app Ola launches in London on Monday as another rival to Uber.
The India-based firm claimed it will "focus on drivers, safety and a collaborative approach".
Uber already faces competition in London from mini cab app firms such as Bolt, Kapten and Kabbee.
Ola was founded in 2011 and began operating in the UK in South Wales in August 2018.
It has since expanded to locations such as Liverpool, Birmingham, Bristol and Reading.
The company said it has provided more than three million rides through 11,000 drivers across the country.
London will be the 28th UK local authority it will serve.
The firm said it has 20,000 drivers signed up to its platform in the capital and will be "fully operational from day one".
Drivers will retain all of their earnings for the first six weeks and will then benefit from "market-leading commission rates", Ola claimed.
The company described its approach to passenger safety as "industry-leading", through measures such as 24/7 voice support, an option to share journey details with friends and family, and in-app emergency features.
It also pledged to maintain its "collaborative approach" with regulators and local authorities.
Simon Smith, head of Ola International, said: "The overwhelmingly positive reception to Ola since launching in the UK in 2018 illustrates the significant demand from drivers, riders and communities.
"We are working closely with drivers to build a high-quality and reliable service for Londoners.
"Launching in London is a major milestone for us and we are keen to offer a first-class experience for all our customers."
Ola will offer passengers the choice of using a private hire vehicle or a taxi.
Uber says its London operation has 45,000 licensed drivers and 3.5 million customers.
Transport for London rejected its application for a new licence in November 2019 due to "several breaches that placed passengers and their safety at risk".
The firm is allowed to continue operating while it appeals against the decision.
Uber's general manager for the UK and Ireland, Melinda Roylett, said: "Everyone who uses ride-sharing apps in London should expect the same high safety standards throughout the industry.
"We hope all operators follow our lead in rolling out safety features, such as an emergency assistance button that connects to the police and the ability to share your trip with your loved ones."
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