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The Maharashtra government has off lately faced a lot of pressure from taxi and auto rickshaw unions for curbing Ola and Uber, the app-based taxi aggregators in Mumbai city, owing to which the government might soon take some action. 
 
The reason, some say, is that the government doesn’t want to offending such a large number of taxi and auto rickshaw drivers, looking at the political cost that it might have to pay for this later. 
 
"There are 1lakh auto rickshaw drivers in the city and about 30,000 taxi drivers, so if each driver has a family of three, then the number comes to around 5 lakh people. So you are antagonising five lakh voters during the civic elections in Mumbai and Thane," a government official told <a href="http://economictimes.indiatimes.com/small-biz/startups/maharashtra-may-put-curbs-on-app-based-taxi-aggregators-ola-uber/articleshow/53409989.cms">ET</a>. "We are working on a plan where taxi and autos also operate like Uber and Ola with flexible fare structures," he added. 
 It was because of an assurance from the government that one of these unions called off a strike that was scheduled from yesterday. However, needless to say, executives from Uber and Ola were also not going to sit quietly, because of which they have sought an appointment with CM <keyword id="6355042" type="PERSON" weightage="100" keywordseo="Devendra-Fadnavis">Devendra Fadnavis</keyword>. 
 
<a href="http://d152j5tfobgaot.cloudfront.net/wp-content/uploads/2015/11/yourstory-mumbai-taxi.png">Image source</a>

Maharashta might limit Ola and Uber operations in Mumbai

BANGALORE: The fight to win over the Indian taxi passenger has intensified with aggregator Olacabs and cab hailing app Uber slashing prices by a fourth in Delhi—a development that is likely to force rivals to follow suit. 
 
While Ola has cut rates in its lowerend car business—Ola mini—to Rs 10 /km, Uber has cut prices for its premium segment Uber BLACK. Separately, the San Francisco-based taxi hailing app also announced that it will be launching its affordable ride service UberX in three more Indian cities: Mumbai, Chennai and Pune. “We are pushing our efficiency system to the maximum,” said Shailesh Sawlani, general manager of Uber in Mumbai. "We see this as a daily commute option for our riders and plan to maintain these prices if customers ride with us as much as we anticipate." 
 UberX Mumbai fares are Rs 15/km with a minimum base fare of Rs 50 and total minimum fare of Rs 125. The latest moves come after Uber cut its prices in Bangalore by 25% last month. Ola also reduced fares to Rs10/km for its <keyword id="2210965" type="UNKNOWN" weightage="60" keywordseo="Ola-Mini">Ola Mini</keyword> service in the Garden City. “We have been able to optimise our inventory,” said Pranay Jivrajka, vice president of operations at Olacabs. 
 
According to industry estimates, taxi companies are struggling to keep pace with the rising demand and on average cannot accommodate a fifth of the bookings. To address this problem Ola said it will increase the number of cabs available on its mobile app by about 35% to 3,200 in Delhi alone. Ola’s total fleet size is about 15,000. 
 
“These price cuts are just a starting point to acquire customers and establishing the brand image till the time you hit a critical mass,” said Arvind Singhal, chairman of Technopak. “At Rs 10/km Ola is making losses on each Ola Mini ride,” said a source directly familiar with the matter. Same is the case with Uber, according to another source. Uber’s price drop in Bangalore is, however, for a limited duration. 
 The company has not specified the timeframe. Other competitors like TaxiFor-Sure are focussing on discount codes to expand the customer base instead of cutting prices. “We keep doing event-related promotions and offer discount vouchers from time to time,” said Aprameya Radhakrishna, founder and chief executive of <keyword id="1428790" type="COMPANY" weightage="80" keywordseo="TaxiforSure">TaxiForSure</keyword>. 
 
“Till the time, taxi aggregators will not face pressure to turn profitable, the freebies will continue,” said Jaspal Singh, cofounder of Valoriser Consultants, which provides market research services for transportation companies. “These companies are looking to build valuation by expanding geographic reach, recruiting more number of drivers and attracting bookings to increase revenue.” 
 However other aggregators like <keyword id="108722" type="PERSON" weightage="80" keywordseo="Meru-Cabs">Meru Cabs</keyword> and Savaari cabs feel that price cuts is not sustainable long-term. “Meru does not believe in price wars,” said Siddhartha Pahwa, CEO of MERU Cabs. “Consumers will not take a cab because it’s cheap but for its reliability, safety and professional service.”

Win For Customers as Taxi Companies Like Olacabs, Uber Cut Fares In Delhi, Others May Follow

Owing to the increasing number of defaults on vehicle loans by Bengaluru-based drivers of ride-hailing apps like <keyword id="6354720" type="PERSON" weightage="100" keywordseo="Ola">Ola</keyword> and <a href="http://www.businessinsider.in/small-business/companies/uber-central-comes-to-india-and-you-dont-need-uber-app-for-it/articleshow/58263865.cms">Uber</a>, India’s top banks have decided against issuing fresh loans to such drivers. Not only this, banks have also decided to push to recover dues from these drivers. <a href="http://www.businessinsider.in/transportation/bengaluru-public-transport-service-takes-cue-from-ola-and-uber-slashes-fares/articleshow/57990810.cms">Bengaluru</a> is the largest market in India for these cab-based aggregators. Also read: <a href="http://www.businessinsider.in/ola-founder-says-government-should-decide-if-us-internet-giants-are-capital-dumping-in-india/articleshow/58066428.cms">Ola founder says government should decide if US internet giants are 'capital dumping' in India</a> After almost one-fifth of its loan book in the city registered defaults, the State Bank of India (<keyword id="13222" type="CITY" weightage="100" keywordseo="SBI">SBI</keyword>) has decided to stop giving vehicle loans to <a href="http://www.businessinsider.in/latest/bengaluru-feel-relieved-as-ola-anduber-drivers-call-off-strike/articleshow/57221582.cms">Bengaluru</a>-based drivers of cab-aggregator company Ola. "The total default amounts to Rs 60 crore in the city," said Gopal Krishan Kansal, chief general manager, small and medium enterprise, at <a href="http://www.businessinsider.in/small-business/finance/state-bank-of-india-sees-profit-boost-in-three-years-after-bank-units-merged/articleshow/58165449.cms">SBI</a> (Mumbai). It’s been a fee months that SBI decided to stop lending to <a href="http://www.businessinsider.in/ola-to-be-the-first-cab-aggregator-in-india-to-introduce-e-cabs/articleshow/57889692.cms">Ola</a> drivers in Bengaluru. "We (still) disburse loans to Ola vehicles in Hyderabad and Chennai (where) the default rate is almost 7%," Kansal told <a href="http://economictimes.indiatimes.com/small-biz/startups/jolt-for-ola-in-bengaluru-as-sbi-decides-to-stop-disbursing-loans-to-their-drivers/articleshow/58351691.cms">ET</a>. Also read: <a href="http://www.businessinsider.in/ubereats-is-all-set-to-debut-in-india/articleshow/58218462.cms">UberEATS is all set to debut in India</a> As per bankers, these drivers started to stop paying their EMIs after the sharp fall in their incomes, owing to <keyword id="1042120" type="PERSON" weightage="100" keywordseo="Uber">Uber</keyword> and Ola cutting down on their incentives. Earlier, Ola and <keyword id="6364641" type="UNKNOWN" weightage="100" keywordseo="Uber-drivers">Uber drivers</keyword> used to get commissions ranging from Rs 70,000 and Rs 1 lakh per month. However, these incomes have now come down to an average of Rs 40,000-50,000, thanks to the scarcity of cash with these companies after years of heavy spending.

Emergency brakes on Ola and Uber in Bengaluru as banks decide against lending to drivers

An official from the <keyword id="6404450" type="ORGANIZATION" weightage="100" keywordseo="Ministry-of-Road-Transport-and-Highways">ministry of road transport and highways</keyword> has told <a href="http://economictimes.indiatimes.com/small-biz/startups/states-to-take-call-on-digital-meters-for-ola-uber-taxis/articleshow/53494991.cms">ET</a> that the power to decide whether cabs operated by apps like <a href="http://www.businessinsider.in/Ubers-merging-with-Didi-Chuxing-in-China/articleshow/53490542.cms">Uber </a>and <a href="http://www.businessinsider.in/Ola-has-done-something-which-will-make-it-way-ahead-of-Uber-Find-out/articleshow/53488024.cms">Ola </a>should use digital meters or GPS to calculate fares will be given to the state governments, which can choose either rule for their states. 
 
"Since transport is a concurrent subject, we have left it to the states to decide. The ministry is in favour of all solutions that facilitate commuters," the official said, adding that they have received several suggestions on transport reforms, one of them being making digital meters mandatory, since GPS readings vary, depending on mobile data availability and strength. 
 
Also read: <a href="http://www.businessinsider.in/Ola-and-Uber-maximum-fares/articleshow/52865453.cms">Centre asks states to cap the maximum fares Ola and Uber can charge</a> 
 
It’s because of the rising business of <a href="http://www.businessinsider.in/Uber-and-Ola-new-surge-pricing/articleshow/52953940.cms">Uber and Ola</a> that black-and-yellow taxis and auto-rickshaws are left with no business, which has forced them to knock the government doors for justice. 
 
Also read: <a href="http://www.businessinsider.in/Mumbai-to-limit-Ola-and-Uber-operations/articleshow/53417696.cms">Maharashta might limit Ola and Uber operations in Mumbai</a> 
 
In Karnataka, it has been made mandatory for cabs to operate with digital meters that can print receipts. 
 
In New Delhi, even though all cabs come with digital meters installed since it’s necessary for registration, they use GPS to calculate fares, which the ministry thinks is violation of the law. 
 
<a href="https://ictgediminas.files.wordpress.com/2012/11/20121020_224344.jpg">Image source</a>

States to decide if Ola and Uber should use digital meters or GPS to calculate fare

Nearly 35,000 traditional <keyword id="1363622" type="UNKNOWN" weightage="100" keywordseo="Kaali-Peeli">kaali-peeli</keyword> cabs in <a href="http://www.businessinsider.in/searchresult.cms?query=mumbai">Mumbai </a>have ditched the traditional route and have decided to take on two of their biggest competitors- <a href="http://www.businessinsider.in/Ola-is-going-for-the-kill-Uber-already-sees-it-as-competition/articleshow/49088741.cms">Ola</a> and <a href="http://www.businessinsider.in/searchresult.cms?query=uber">Uber</a> head-on by launching an app of their own. 
 Embracing the onslaught of technology enabled businesses, two major taxi unions in Mumbai and have come together and launched its very own app called <keyword id="3202744" type="UNKNOWN" weightage="80" keywordseo="9211">9211</keyword>, which will be offering instant cab services at government approved rates, no less, which is Rs 22 for the first 1.5 km. 
 Similar to how <keyword id="6354720" type="PERSON" weightage="80" keywordseo="Ola">Ola</keyword> and <keyword id="1042120" type="PERSON" weightage="80" keywordseo="Uber">Uber</keyword>’s app work, 9211 will also allow users the facility of locating and booking cabs near them. 
 
According to Prem Singh, the leader of Mumbai Taxi Association, all 35,000 kaali-peeli drivers will be asked to enroll themselves on the app. 
 
The app is expected to be state of the art and come built with safety features, such as an SOS button and GPS tracking, while all movements of the cabs are to be monitored via a centralized control room. 
 
As the venture is in its initial stage, unions have decided to take only cash payment at the moment but officials have indicated that they will soon come up with an online payment option as well. 
 While this launch is an extremely positive sign of traditional old businesses adapting to modern scenarios and opening their eyes to the wonders of technology, it’s still left to see whether the move will actually turn out to be profitable for the cab owners or manage to disrupt even a little of the two <keyword id="6524998" type="UNKNOWN" weightage="80" keywordseo="Cab-aggregators">cab aggregators</keyword>’ loyal customer base. 
 
Granted the kaali peeli cabs have number on their side with a fleet of 35,000 cabs, but what will seal the case in their favour is the ease of transactions on the app and how convenient and efficient the experience is, as compared to an Uber or an Ola. 
 
It’s also interesting to note that just last year Ola had tried its level best to incorporate these Kaali-Peeli cabs into their network and has also launched cash payment to attract customers. However, the idea didn’t take off with a meagre 2500 cabs signing up. 
 
Image credit: Indiatimes

Mumbai’s
kaali-peeli cabs just launched an app, but is it enough to counter Ola and Uber?

<ul><li>In Mumbai, almost <a href="https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/uber-ola-drivers-on-strike-heres-the-impact-on-different-cities/articleshow/63361106.cms">60,000 cabs are reportedly off the roads</a> in the city today leaving most commuters stranded. </li><li>The companies initially offered huge overhead payouts to them, but now takes approximately 25% cut from each of their trips. </li><li><keyword id="488032" type="PERSON" weightage="20" keywordseo="Maharashtra-Navnirman-Vahatuk-Sena">Maharashtra Navnirman Vahatuk Sena</keyword> has reached out to the police to get the ‘decision makers’ from these companies to meet them and the government, in order to come to an amicable decision </li></ul><keyword id="6354720" type="PERSON" weightage="20" keywordseo="Ola">Ola</keyword> and <keyword id="1042120" type="PERSON" weightage="20" keywordseo="Uber">Uber</keyword> drivers have gone on an indefinite strike starting midnight 18 March, organised by the <keyword id="13126" type="COMPANY" weightage="20" keywordseo="Maharashtra">Maharashtra</keyword> Navnirman Vahatuk Sena (MNVS). Though the strike is primarily affecting commuters in Mumbai, there have been some instances of cab unavailability in Delhi and Bangalore too. In Mumbai, almost <a href="https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/uber-ola-drivers-on-strike-heres-the-impact-on-different-cities/articleshow/63361106.cms">60,000 cabs are reportedly off the roads</a> in the city today leaving most commuters stranded. We spoke to a couple of drivers in Delhi who seemed to be blissfully unaware of the strike and claim they are happy and have 'no problem' with the company. Uber itself says that only Mumbai and Pune have been affected by the strikes and it’s business as usual in other cities. In a statement to the press, an Uber spokesperson said: We regret the disruption caused to our rider and driver community by a small group of individuals. We remain committed to serving the city, ensuring driver partners can continue to access stable earning opportunities, while giving riders a convenient option to get around their city. The Hon’ble Bombay High Court issued an injunction prohibiting unions, their leaders and anybody else from obstructing the activities of Uber driver partners. We welcome this, and hope that it will enable drivers to stay behind the wheel, something many have been telling us they wish to do. We have been listening to our driver partners all along and are committed to ensuring that Uber remains an attractive entrepreneurial opportunity for them. While the authorities have taken steps to ensure minimal disruption to our rider and driver communities, we hope that they will continue to enforce the order passed by the High Court. However, it's no secret that disgruntled cab drivers who bought in on the rosy picture painted by Uber and Ola, promising a lucrative career and a chance to squeeze into the middle class have today realised that it was nothing but a pipe dream. Initially promised earnings over a lakh per month, people from various walks of lives decided to give up their full-time jobs and even land to cash-in on this. However, today these drivers are finding it difficult to scrounge up enough money to pay up the loans taken to buy their cars. But this isn’t the first time we’ve heard this story. Drivers in India have been complaining about reduced incentives and overall earnings from Uber and Ola for a while now. The companies initially offered huge overhead payouts to them, but now takes approximately 25% cut from each of their trips. While both companies still do have some incentives in place, drivers say they are more difficult to achieve and working for Uber and Ola isn’t the “joyride” it once used to be. Examples overseas... When strikes against Uber first broke out in London back in 2016, Uber’s impact on Black Cab drivers’ income was one of the cornerstones of the movement. “Unite, the union that represents many black-cab drivers, claims the government is biased against their trade and claims light-touch regulation will threaten passenger safety as well as drivers’ incomes,” <a href="https://www.theguardian.com/technology/2016/feb/10/black-cab-drivers-uber-protest-london-traffic-standstill">the Guardian</a> wrote at the time. These strikes have become somewhat commonplace and except for one big win for Uber drivers in the UK in November last year, the results, for the drivers at least, have always been wanting. In the UK, a panel ruled that <a href="https://www.usatoday.com/story/news/world/2017/11/10/british-panels-rules-uber-drivers-employees-not-contractors/851388001/">Uber drivers are employees and not contractors</a>, and therefore entitled to basic protections such as minimum wage and vacation pay. In September last year, Uber was <a href="https://www.theguardian.com/technology/2017/sep/22/uber-licence-transport-for-london-tfl">denied the licence to operate by Transport for London</a> (TfL) claiming that the company was not a “fit and proper” operator. Uber’s failure to report ‘serious criminal offences, obtaining medical certificates and driver background checks’ was the main reason behind this decision. This move affected the 40,000 people who worked for Uber, not to mention its 3.5 million users. In 2015, local <a href="https://www.theguardian.com/world/2015/jul/24/rio-de-janeiro-uber-protest-taxis">cab drivers in Rio de Janeiro protested against Uber</a> because they claimed they were the “official” drivers who were strictly regulated and fewer overhead costs gave them a ‘competitive advantage’. In 2016, Uber decided to cease operations in Austin, Texas because it didn’t find it feasible to comply with the regulation to fingerprint and run thorough background checks on all its drivers. In 2014, both Berlin and Hamburg, Germany voted to ban Uber because it did not <a href="https://www.theguardian.com/technology/2014/aug/14/uber-taxi-service-banned-berlin-safety-grounds">‘do enough to protect its passengers from unlicensed drivers’</a>. The common thread of grievance is a predictable trio -- local taxi operators revolting against Uber’s competitive advantage, security concerns based on Uber’s slack regulation over the choice of drivers with regards to proper background checks, and unethical treatment of drivers. All of these complaints have been cited in India as well, but this is the second time such protests have sprung in as many years. Last year, the Sarvodaya Driver Association of Delhi (SDAD) called for a strike in Delhi against Uber and Ola on similar grounds, though the companies escaped unscathed at the time. Taking cues... The current strike in India hopes to achieve similar results. “This time things will be different because they have partnered with us,” says <keyword id="165480" type="PERSON" weightage="20" keywordseo="Sanjay-Naik">Sanjay Naik</keyword>, president of Maharashtra Navnirman Sena's (MNVS) transport wing. He believes that the <a href="http://indianexpress.com/article/india/maharashtra-taxi-rules-discriminates-between-black-and-yellow-cabs-and-app-based-taxi-services-bombay-hc-4780461/">privileges that are mandated by law to the Mumbai Kaali Peeli’ (black-and-yellow) taxi drivers</a> should also be applicable to Ola and Uber cabs so that all drivers can benefit from them. He wants the implementation of the <a href="https://www.thehindubusinessline.com/news/national/some-relief-for-cab-taxi-operators-in-maharashtra/article9921977.ece">BC Khatua Committee’s proposal</a> that includes ‘relaxation of several provisions of the Maharashtra City Taxi Scheme, including lowering the permit fees for all types of cars to a flat ₹10,000 instead of a graded system ranging from ₹75,000 to ₹2.6 lakh under the City Taxi rules.’ He also accused the companies of giving preference to cabs owned by the companies instead of driver-owned cabs. In India, Uber offers to buy cabs that are then passed on to drivers. Drivers effectively work off their debt to the company, by paying a monthly instalment to them. What Naik is insinuating is that Uber gives these drivers more rides than those who register their own cars on the service. What is most interesting, however, is that MNVS hasn’t ruled out going into business for themselves. Naik told us that if things don’t work out, they will consider bringing all the drivers together under one umbrella and take out the middlemen (Ola and Uber). However, for now, the organisation has reached out to the police to get the ‘decision makers’ from these companies to meet them and the government, in order to come to an amicable decision that will not only benefit the drivers monetarily but also implement regulations so that all drivers come under the same law and benefit from it. With the predictable spate of grievances by Uber drivers, commuters and local taxi operators, will Maharashtra take a cue from international events and tighten the leash on the private taxi operators? If it does, will that, in turn, set the precedent for the rest of the country? UPDATE: Ola shared the statement below with us today. “Interest of our driver partners and customer convenience is of paramount importance to us. While, we have seen a slight improvement in our services in Mumbai, however for the situation to improve significantly it is imperative that intimidation of driver partners and vandalism of their cars by vested interests be stopped. New economy companies like us are counting on the police for normalcy to return.”

Indian drivers may finally be taking cues from global movements against on-demand cab services

Didi Kuaidi, China's largest taxi aggregator app, which is backed by internet behemoth Alibaba, would soon invest in homegrown Ola, thus making the <keyword id="1042120" type="PERSON" weightage="100" keywordseo="Uber">Uber</keyword> vs Ola battle bloodier than before. 

	Didi's investment in Bangalore-headquartered Ola comes close on the heels of it picking up stakes in San Francisco-based Lyft and Malaysia's GrabTaxi, signalling a global alliance against the cashrich Uber.
 People close to the development told TOI that Ola, formerly Olacabs, is finalizing the second tranche of $200 million of its $500 million financing round led by GIC, Singapore's sovereign wealth fund, Didi Kuaidi, and <keyword id="2649768" type="PERSON" weightage="100" keywordseo="Baillie-Gifford">Baillie Gifford</keyword>, a Scottish investment firm which is a shareholder in Flipkart, valuing the Indian cab-hailing app at $5 billion. 

	GIC, which put in a small amount when Ola scored $400 million led by DST Global earlier this year, is expected to pump as much as $100 million this time around while Didi mayinvest around $30 million. Russian billionaire Yuri Milner's DST Global is also likely to participate in the latest round, sources said. TOI had reported first, in its August 10 edition, about New York-based hedge fund FalconEdge, Softbank Corp and Tiger Global putting the first chunk of $300 million into Ola. Separate email queries sent by TOI regarding the financing round to Bhavish Aggarwal, co-founder &amp; CEO of Ola, Didi Kuaidi and GIC did not elicit a response till the time of going to press. A spokesperson for Baillie Gifford said, "I am afraid that on this occasion we will not be able to offer any comment."
 

	"There's a lot of interest in this round and it may even get oversubscribed. As of now it's likely to close at $500 million.Things are still to be worked out fully," said a person privy to the matter. Even as Ola builds a bigger war chest, there has been talk of the Travis Ka lanick-led Uber looking to raise $1billion for India separately, just like it racked up $1.2 billion for China recently , two markets which are of enormous significance for the company . Uber, the most-valued tech startup worldwide at $51billion, also became the youngest privately-held company to cross the $50 billion valuation mark, beating Facebook's record in July this year.
 Despite being buffeted by regulatory hurdles, both Ola and Uber have been aggressively rolling out new services, discounting, announcing millions in investments along with introducing driver initiatives as competition to corner market share intensifies in Asia's third largest economy which has seen smartpho ne usage grow exponentially .The five-year-old Ola, which came to life in Mumbai, presently leads the domestic taxi app market and claims to be doing as many as 750,000 rides a day while Uber, while announcing its $1 billion investment plan for India, said that it aims to touch 1million rides over the next 9 months from the present 200,000. Ola's pole position got cemented earlier this year when it acquired its smaller rival TaxiForSure . A month before Ola acqui red TFS in India, China's largest taxi-hailing app <keyword id="2677023" type="UNKNOWN" weightage="100" keywordseo="Didi-Dache">Didi Dache</keyword> merged with its closest competitor Kuaidi Dache, backed by internet conglomerate Tencent Holdings and in vestors like Alibaba, SoftBank and Tiger Global, to form a $6-billion transportation powerhouse. Didi Kuaidi is valued at $16 billion and is Uber's biggest competitor worldwide, having raised $4.4 billion in investor money. The Chinese taxi app has been aligning all of Uber's rivals to fight the startup which is spread across 300 cities globally. 
	 
	(Image credits: Indiatimes)

Ola-Didi Kuaidi to take on Uber together

<ul><li>Ola is piloting its self-driving car rental service in India. </li><li>Sources suggest that Ola will be pumping in $500 million into the segment. </li><li>Earlier in March, Hyundai Motor Company and Kia Motors Corporation made their biggest combined investment to date of $300 million into Ola. </li></ul>Indian ride-hailing startup Ola is rapidly moving beyond its core service of being a cab aggregator. After making inroads into e-mobility, it is now launching a self-drive service. Ola is set to start its self-drive service by pumping in $500 million, a source told Business Insider. Confirming the news, an Ola spokesperson told Business Insider, “Basis market feedback, we are piloting our Ola Self-Drive offering in various formats like rentals, subscription and corporate leasing in select cities in the coming weeks. This space is currently underserved and there exists a tremendous opportunity to build a superior experience through an integrated mobility platform like Ola.” The self-drive car rental service will put Ola in direct competition with Zoomcar and Drivezy, while pushing forward Ola’s existing fleet business. Ola Fleet Technologies Pvt Ltd also looks into asset optimization and management. Ola is planning to take this launch to its top seven cities – Bengaluru, Delhi, Mumbai, Chennai, Hyderabad, Pune and Kolkata – with over 10,000 vehicles including luxury sedans and SUVs under the Ola Self-drive category. The company is taking this self-drive category to Ola’s 150 million+ consumers in the country will make it the largest self drive business in India, the source added. By understanding consumer demand, Ola will look at introducing more car types into the self-drive category. They are also looking at growing the business through a subscription model for consumers and reaching out to corporates. Earlier this month, Hyundai Motor Group and Ola announced a strategic partnership under which Hyundai Motor Company and Kia Motors Corporation made their biggest combined investment to date of $300 million. “As part of the strategic collaboration, the companies have agreed to co-create solutions to operate and manage fleet vehicles, marking the Group’s first foray into the industry, as they expand operations from automobile manufacturing and sales to total fleet solutions,” Ola had said in an official statement. See Also: <a href="https://www.businessinsider.in/ola-takes-on-mahindra-glyd-with-fresh-funds-wheres-uber/articleshow/68214440.cms">Ola gets fresh funds to take on Mahindra’s Glyd – where’s Uber?</a> <a href="https://www.businessinsider.in/after-minting-1-billion-from-flipkart-sale-sachin-bansal-is-now-betting-big-on-ola/articleshow/67526383.cms">Watch out Uber. Sachin Bansal gets Ola share after selling Flipkart</a>

Ola will race Zoomcar in self-drive car rentals with a $500 million bet

After guidelines issued by the <keyword id="168381" type="ORGANIZATION" weightage="20" keywordseo="ministry-of-road-transport">Ministry of Road Transport</keyword> appeared to impact the business of the US-based taxi-hailing firm <keyword id="1042120" type="PERSON" weightage="20" keywordseo="Uber">Uber</keyword> in India, the company has now decided to take help of social media and online petitions. 
 Known as the <keyword id="3114129" type="UNKNOWN" weightage="20" keywordseo="City-Taxi-Scheme-2015">City Taxi Scheme 2015</keyword>, Uber has launched this campaign against Maharashtra’s draft rules for cab services. The campaign also looks forward to officially communicate its views to the government on the proposed rules. 
 
Shailesh Sawlani, Uber's general manager for Mumbai, says, "We feel it is critical for the people of Maharashtra, who have for years suffered in silence with poor quality transportation, to stand up against these regressive regulations and make their voices heard." 
 
Ola, on the other hand, prefers to directly get in touch with the government officials to resolve stalemates, according to some reports. Earlier, Ola had stated that "We work with authorities at all levels, be it central and state to resolve issues.” 
 
Uber, in the past as well, has taken help of online platform to fix issues with the government. In a similar move, Uber launched a campaign in January this year after the Delhi government banned its services following an alleged rape of a passenger by one of its driver partners. 
 
The company ran a campaign on social networking platform twitter with hash-tag #BringBackUber. Moreover, it also launched online petitions that received nearly 8,000 applications. The case, however, is now in court. 
 
Up until now, the petition in Mumbai has received around 24,000 online signatures. 
 
According to the draft rule issued by the Department of Home under Maharashtra government, a cab service licensee should have a fleet of 1,000 taxis to 4,000 taxis. Additionally, fare charged by the cabbies would be prescribed by the state transport authority. 
 
The conditions are not acceptable to Uber along with a proposal that asks its taxi drivers to maintain a feedback register and receipt printers. 
 
Sawlani also added that “The proposed scheme is a clampdown on consumer choice and freedom. It is equally important for commuters to let the government know that this scheme does not have smart solutions nor their interests at heart.” 
 
Turning down such online campaigns, a Delhi-based lobbyist for transport firms says, "The online petition in Delhi was not very effective mainly because of the timing, as it was done after the rape case. And second, there was a petition to change an existing law, unlike in Mumbai where comments are invited. Cab companies should work with authorities. It is not possible to settle all issues through the judiciary."

Here’s what Uber is doing to challenge the government’s guidelines

In Delhi, the government is going to introduce a new policy for Ola and Uber, after which there would be a cap on fares that the customers are charged. 
 
The new policy is, as of now, under consideration by the Aam Aadmi Party government. 
 
"The draft is ready. Soon, it will be put up for public consultation," said Transport Minister Satyendar Jain. 
 
While asked to explain how the tariff and method of charging will be regulated, Jain said, "We have said meters should be there. Tariff will be what the government fixes, though it will be dynamic. They (aggregators) won't be able to impose surge pricing." 
 
The reason behind such policies is the huge amount of losses that black-and-yellow taxis and auto-rickshaws are suffering ever since <a href="http://www.businessinsider.in/Ubers-merging-with-Didi-Chuxing-in-China/articleshow/53490542.cms">Uber </a>and <a href="http://www.businessinsider.in/Ola-has-done-something-which-will-make-it-way-ahead-of-Uber-Find-out/articleshow/53488024.cms">Ola </a>have started operations in the country. 
 
Also read: <a href="http://www.businessinsider.in/Mumbai-to-limit-Ola-and-Uber-operations/articleshow/53417696.cms">Maharashta might limit Ola and Uber operations in Mumbai</a> 
 
"They play a game with you - sometimes charging you more and at other times less. We are fixing maximum (tariff) now and they won't be able to charge beyond that. (This maximum) tariff will depend upon the vehicle (which will be used)," Jain added. 
 
He said that the policy will be made keeping in mind the benefit of all stakeholders, while keeping up with the central government’s directions that allowed states to <a href="http://www.businessinsider.in/Ola-and-Uber-maximum-fares/articleshow/52865453.cms">cap maximum fares </a>for these aggregators. 
 
As reported a few days back, the central government has <a href="http://www.businessinsider.in/States-to-decide-Ola-and-Uber-meters-fate/articleshow/53499888.cms">authorised the state governments </a>to decide whether mobile app-based taxi aggregators would be charging fares based on digital meters or GPS in the capital. 
 
<a href="http://bitsnapper.com/wp-content/uploads/2015/04/My-Experience-with-Uber-in-Delhi-Bangalore-Bitsnapper.jpg">Image source</a>

Delhi to cap tariffs for Uber and Ola

This summer, commuters in the NCR, willing to ditch metros and buses, will have several choices to book their cabs. Apart from <a href="http://www.businessinsider.in/heres-who-is-benefitting-from-ola-uber-drivers-strike/articleshow/57187851.cms">Ola and Uber</a>, they will have two new cab aggregator apps. This would also benefit them in terms of money, owing to the price war between these apps. 
 
Also read: <a href="http://www.businessinsider.in/these-women-ola-auto-drivers-are-changing-Indian-roads/articleshow/57539709.cms">These Women Ola Auto drivers are changing Indian roads</a> 
 
Cabby, the cab aggregator app to be launched today, has been developed by Sahil Arora, a seventeen-year-old school dropout from Gurgaon. The app will have 25,000 operational cabs in NCR, following which it would move to <a href="http://www.businessinsider.in/bengaluru-feel-relieved-as-ola-anduber-drivers-call-off-strike/articleshow/57221582.cms">Bengaluru</a>. 
 
Also read: <a href="http://www.businessinsider.in/online-cab-players-in-2016-completed-nearly-half-a-billion-rides-with-250-y-o-y-growth-in-india/articleshow/57273938.cms">Online cab players in 2016 completed nearly half a billion rides with 250% y-o-y growth in India</a> 
 Cabby would charge a base fare of Rs 37.50 for the first 2 km, followed by Rs 12.5 per km. Arora told ET that this is actually very competitive, and the fare would be lesser than what <keyword id="6354720" type="PERSON" weightage="100" keywordseo="Ola">Ola</keyword> and Uber charge. 
 
Also read: <a href="http://www.businessinsider.in/are-ola-and-uber-actually-tryingto-prove-poor-people-should-never-think-big/articleshow/57475233.cms">Are Ola and Uber actually trying to prove “poor people should never think big”?</a> 
 
The second cab-aggregator app to be launched today is from 74 BC Technologies, operational from <a href="http://www.businessinsider.in/UberMOTO-enters-Gurgaon/articleshow/51603369.cms">Gurgaon</a> where it is known for the bike taxi aggregator Baxi. 
 
Baxi is now launching cab services in seven cities including Delhi, Ghaziabad, Gurgaon, Mumbai, Pune, Chennai and Bengaluru. Acting as a technology provider for the app, it will be available free of cost for cab drivers. 
 
"Baxi will not take any commission from the drivers to use their technology platform," said Ashutosh Johri, co-founder of Baxi and an IIT Delhi alumnus. It would charge a base fare of Rs 50, followed by Rs 9 per km. Having around 1,000 cabs in its fleet, it would also have Re 1/minute wait charges. 
 
(Image source: Level Nine Services)

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