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Ola has done something which will make it way ahead of Uber. Find out

Ola has done something which will make it way ahead of Uber. Find out
Transportation1 min read
Taxi aggregator Ola has applied for a city taxi licence in national capital, New Delhi under the name Ola Fleet.

The app-only cab aggregator had applied for the licence on June 1 and the permit typically takes 30-40 days to be granted.

"New Delhi is one of the top three cities for both Ola and Uber," ET quoted one of the sources as saying.

In July only, Ola got a licence to operate as an "on-demand transportation aggregator" in Bengaluru, whereas Uber's application was rejected due to incomplete paperwork.

"While Ola is trying to legalise its models to be on the right side of the government and investors, Uber is hitting the court with recommendations to the scheme and hoping to maintain the status quo till favourable regulations are passed," an official told ET.

READ ALSO: Ola, Uber will train one lakh drivers for government now

Last year, the Delhi government had introduced the city taxi scheme, under which any one licence-holder cannot register more than 2,500 cars and needs to follow conditions such as installation of GPS devices, taxi meters and fare regulation.

Also, licence-holder will have to ensure every taxi is a motor cab with a valid fitness certificate issued by the transport department, is driven on CNG, LPG, has an engine capacity of 600 cc and above and a seating capacity not exceeding seven, inclusive of the driver.

"Already, both companies have created an incentive structure in a way that makes it impossible for drivers to work with both the companies. With the leasing model, both Ola and Uber want to secure supply," Jaspal Singh, cofounder of the transportation sector consultancy Valoriser Consultants, told ET.

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