Taxi Driver Online

Uber has a new competitor in one of its most competitive overseas markets that's backed by Softbank, Hyundai and other big names

Ola, a ride-hailing firm based in India, said Thursday that's its received a license to operate in London, one of the world's largest markets for app-based taxi companies.

The company is targeting a launch this September in the British capital city, a company spokesperson told Business Insider:

"London is one of the world's most iconic cities and hosts a progressive mobility environment. We couldn't be more excited to bring Ola to London in the time ahead! We are looking forward to building world-class mobility offerings for London, by collaborating with drivers, riders, the government and local authorities. Londoners will hear more from us closer to our launch in the city, as we get ready to serve them."

Ola's been targeting London, where traditional taxi cab drivers are still angry as ever at the ride-hailing industry's effect on their business, since at least 2018. News of its license comes as Uber attempts to shore up its lead in many international markets where it has struggled.

In 2017, London officials revoked Uber's license to operate in the city because of instances where the company acted like it was 'above the law,' as a judge put it at the time. The company won back its right to operate in June 2018, but the court has an option to revisit that after a 15-month conditional period.

Ola, meanwhile, is already operating in many cities throughout the UK, with a total of 110 cities total across four countries. The company has racked up a valuation of more than $5 billion, according to PitchBook data, with backers including Softbank (also an Uber investor), Hyundai, Kia, and more.

The fact that it's so easy for a fledgling company to begin providing app-based taxi rides is a risk for Uber, according to Wall Street analysts.

"We view barriers to entry as fairly low for major technology providers and auto manufacturers, posing the biggest threat for existing ridesharing providers," CFRA analyst Angelo Zino said in a recent note to clients. "Ridesharing companies will need to increasingly compete with certain non-ridesharing transportation-asa-service network companies and taxi companies as well as traditional automotive manufacturers, such as BMW and Tesla, which have entered or plan to enter market."

Other ride-hailing competitors in London include Gett, ViaVan, Addison Lee, and a handful of others.

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IDFIMH

And that ladies and gents is why Uber will never make money, and all those that recently invested in Uber are mugs of the highest order.

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IDFIMH

Easy to start an app-based company, but if you don't get users then you have no work, Uber only works because it's installed on enough people's phones. Ola has a big hurdle to overcome to get people to install and use its app over Uber.

There's an awful lot that existing local firms could learn from the likes of Uber, but choose not to (and I'm not talking about the price). One of our local ops disabled vehicle tracking in their app because the drivers didn't like the punters knowing where they were. Knowing where you car is is one of the big selling points of Uber to a customer.

What I want to know when I order a cab is "When is it going to be here" and "How much is it going to cost". The first one is generally more important, but loads of the apps fake how many drivers they have out (or show drivers that are already on jobs). I've used the local firms apps where they indicate a 5 min wait only to still be waiting for the job to be accepted by a driver 20 mins later.

To a degree I agree, but Ola will be added by most, if not all, of the cars that currently have the Uber app on.

And Ola also know that to get punters, initially, they will have to promote themselves and offer big discounts. Once word spreads then the kids will use those discounts, especially if they are getting the same cars as they were with the Uber app.

Uber will have to, and will, lower their prices and offer discounts.

The only way Uber will ever make a financial success out of the taxi/PH trade is if they stop cars that are using the Uber app from using any other app.

But that's not going to happen for many reasons.

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IDFIMH

I can actually see Ola being pretty attractive for HC drivers. AFAIK Uber don't support HCs on their platform but Uber do.

You see plenty of HCs taking sets from local PH firms and paying maybe half weekly settle in order to fill in work during times when the ranks are quiet, especially if they can get the 8 seater work. What Ola offers is a similar deal but with commission instead of settle, so if you're the kind of driver that would just use the set a couple of days a week you might be better off paying 20% commission on the fares than the £70 per week in settle.



The local ops around here do it, if you're doing side work for another OP they'll have your set off you. Which kind of makes a mockery out of the idea that the drivers are self employed. Both big local firms then blacklisted any driver that took an Uber set (to the point that they sent people to the Uber launch event to check if any locals turned up), which is why the Uber's you see around here are all KMBC or Sefton plated.

In my area we have hackneys licensed elsewhere working the Uber app.

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IDFIMH