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<a href="http://www.businessinsider.in/searchresult.cms?query=Ola&amp;sortorder=effectivedate">Ola</a> today introduced <keyword id="6403560" type="UNKNOWN" weightage="80" keywordseo="e-rickshaws">E-rickshaws</keyword> in Delhi NCR. The first <keyword id="3311609" type="UNKNOWN" weightage="80" keywordseo="Ola-e-rickshaw">Ola E-rickshaw</keyword> will be booked by Prime Minister <a href="http://www.businessinsider.in/searchresult.cms?query=Narendra+Modi&amp;sortorder=effectivedate">Narendra Modi</a> at the launch of the ‘<a href="http://www.businessinsider.in/searchresult.cms?query=Stand-Up+India&amp;sortorder=effectivedate">Stand-Up India</a>’ initiative. The service is set to be operational from next week. 
 
The company plans to deploy around 5,100 e-rickshaws in total with approx 1,000 each across Delhi, Noida, Faridabad, Gurgaon and Ghaziabad. This will happen in partnership with <a href="http://www.businessinsider.in/searchresult.cms?query=Bhartiya+Micro+Credit&amp;sortorder=effectivedate">Bhartiya Micro Credit</a> (BMC). 
 When asked why the company started with the nation’s capital, <keyword id="6354720" type="PERSON" weightage="60" keywordseo="Ola">Ola</keyword> Spokesperson <a href="http://www.businessinsider.in/searchresult.cms?query=Anand+Subramanian&amp;sortorder=effectivedate">Anand Subramanian</a> said, “While Delhi may be pretty well-connected, a Ghaziabad or Faridabad may be lacking in last mile delivery options. We’re bringing that option to smaller cities.” 
 
Ola maintains the model will be further scaled up in the coming months to more small towns and tier III cities across the country. Driver partners will pay Ola 10% commission for being on the platform. 
 
The fact is over 60% of India’s population is residing in small towns across the country, and there are over 5 million cycle rickshaws across India. While the potential might seem huge, the big question is if Ola’s tariff of Rs. 25 for the first 2 kilometers will help tap into a market dominated primarily by unorganized hyper-local shared e-rickshaw services. 
 
Enabling <a href="http://www.businessinsider.in/searchresult.cms?query=ride-sharing&amp;sortorder=effectivedate">ride-sharing</a> might reduce fares to 30-40% of the current costs. However, Ola COO <a href="http://www.businessinsider.in/searchresult.cms?query=Pranay+Jivrajka&amp;sortorder=effectivedate">Pranay Jivrajka</a> says that might take a while, “Sharing is a little complicated. The idea is to firstly equip them (e-rickshaw drivers) with technological solutions. As we see confidence in driver partners, we’ll go as far as soon as possible.” 
Simply put, ride-sharing for e-rickshaws will take a while. 
 
Anand explains, “Sharing is also a question of scale. It has taken us considerable time, understanding and necessary scale to create a ride-sharing model for cabs. For e-rickshaws the use-case and user demographics are different.” 
Will the ‘online taxi aggregator’ model work in a hyper-local market where money is king, and cheaper is better? That’s what we’ll have to wait and watch. 
 
Image credit: Indiatimes

Ola’s E-Rickshaws – will it work?

<ul><li>A report by Ola Mobility Institute said that shared transportation will be a major contributing factor in the growth of EVs. </li><li>Two-wheelers and three-wheelers have the highest demand in India. </li><li>However, given India’s infrastructural problems from bad roads to lack of charging stations, the EV journey has multiple challenges. </li></ul>On the Indian roads one cannot miss the overwhelming presence of two-wheelers and three-wheelers. So it’s no surprise that they will form a major part of India’s electric vehicles mission. A report on electric mobility published by Ola Mobility Institute said that it’s shared transportation that can only push the growth of EVs. India has been shifting its gears in transportation to embrace Electric Vehicles (EVs). While news about India’s top auto manufacturers introducing electric vehicle manufacturing doesn’t surprise one now, questions still lurk about the country’s acceptance to EVs because of lack of proper infrastructure. “Unlike Western models, India may not easily kick start its electric journey by deploying premium electric cars. Instead, it makes sense to focus on electrifying vehicles with the highest demand and utility in the Indian context: two-wheelers and three-wheelers. The rickshaw is already proliferating in electric variants, suggesting it is both viable and practical. Thus, appropriate prioritisation of vehicle segments for electrification may prove to be critical to the adoption of e-mobility,” stated the report. Ola’s report is based on its pilot project in Nagpur, while its on a mission to bring 1 million EVs on Indian roads by 2022. The government expects that 25% of all vehicles on the roads will be EVs by 2030. And the push has to come with two-wheelers and three-wheelers, which today occupy over 80% of total Indian vehicles and also contribute to 35% of pollution in India, according to a report by NITI Aayog and World Energy Council. The Indian government too has been promoting the use and manufacture of EVs. Under the FAME II scheme, the government is <a href="https://tech.economictimes.indiatimes.com/news/corporate/government-tightens-localisation-norms-for-electric-vehicles/68294648">offering</a> direct subsidies of upto ₹88 billion to consumers who are adopting EVs. However, given India’s infrastructural problems from bad roads to lack of charging stations, the EV journey has a few speed bumps. Another challenge is the high electricity tariff. Ola’s report states, “Although the cost of electricity shrunk significantly post the implementation of special EV tariff in October 2018, the tariff continues to be unfavorable for TCO (Total Cost Opportunity) economics to work.” With drivers too having had little or no exposure to electric vehicles, it is another task when it comes to the adoption of EVs. In fact, Ola’s initial plan of electric mobility in Nagpur also faced trouble when drivers started reportedly returning the vehicles.

India's EV mission will be incomplete without two wheelers and tuk tuks but not without a few speed bumps

<keyword id="6377963" type="UNKNOWN" weightage="100" keywordseo="Freecharge">FreeCharge</keyword>, India’s leading digital payments platform, today announced its partnership with Bhartiya Micro Credit (BMC), an NGO focused on financial aid for <keyword id="6403560" type="UNKNOWN" weightage="100" keywordseo="e-rickshaws">E-Rickshaws</keyword>. 
 This partnership will be announced at the launch of Stand up India scheme in Noida which will be graced by the Honourable Prime Minister Shri <keyword id="6354477" type="PERSON" weightage="100" keywordseo="Narendra-Modi">Narendra Modi</keyword>, UP Governor, Union Finance Minister, Union Minister for Culture and Tourism and Union Minister of State for Finance. At the event, Honourable Prime Minister Shri Narendra Modi will distribute the E-Rickshaws and also support digital payment by using FreeCharge’s <keyword id="3311934" type="UNKNOWN" weightage="100" keywordseo="Chat-n-Pay">Chat-n-Pay</keyword> service to pay for his ride on one of the new E-Rickshaws. 
 
FreeCharge’s recently launched Chat-n-Pay service enables customers to connect and pay via chat with E-Rickshaw drivers in less than 5 seconds. The drivers can register themselves as a merchant at zero investment, on the Chat-n-Pay platform by simply adding their banking details. For consumers and drivers, Chat-n-Pay will help eliminate the hassle of managing and arranging change and will further offer convenience to pay on-the-go in a seamless and secure manner. 
 
Talking about the partnership, Govind Rajan, Chief Operating Officer, FreeCharge said “We are excited to be part of this initiative and enable E-Rickshaw drivers to be part of the digital payments ecosystem. It is great to witness Honourable Prime Minister himself educating people on the importance of digital payment and will act as a testimony for a company like us. This partnership will strengthen our goal of creating a less cash society and further give a boost to our endeavour to make digital payments accessible to all in the swiftest and secure manner. Our Chat-n-Pay service has opened opportunities for small merchants from unorganised sectors to accept payments digitally with no investment.” 
 
“Bhartiya Micro Credit (BMC) aims to spread awareness of this 13 financial inclusion and social security schemes and proposes to take the benefits to poor and destitute people in the country. The idea is to facilitate the up gradation of pedal rickshaw pullers into E Rickshaw owners and help create threefold increment in their income. Credit for all these facilities is being provided under Mudra Scheme. The progression to E Rickshaw from pedal rickshaw will also help contribute towards achieving the goals of Swachh Bharat Abhiyan. Sach hua Sapna, Rickshaw hua apna!” shared Vijay Pandey, Managing Director, Bhartiya Micro Credit. 
 
“In addition, the customers will also be able to book E Rickshaw through Ola mobile apps and make digital payment via FreeCharge, which will be integrated under PM Modi's Digital India initiative”, said Shantanu Gupta, Advisor to BMC. 
 
As part of their on-going initiative BMC will distribute 5,100 E-Rickshaws at the event. FreeCharge will be setting up training for all these drivers via BMC to help them understand how to use FreeCharge app and accept payments. FreeCharge will also create an exclusive incentive plan for all the E-Rickshaw drivers to encourage them to use digital payments to pay for services like mobile recharges, electricity bill payments etc.

Freecharge partners with NGO to enable digital payment for E-rickshaw drivers

<ul><li><keyword id="6354742" type="COMPANY" weightage="20" keywordseo="Flipkart">Flipkart</keyword> co-founder <keyword id="225032" type="PERSON" weightage="20" keywordseo="Sachin-Bansal">Sachin Bansal</keyword> is pumping $91 million into the ride-hailing <keyword id="138263" type="PERSON" weightage="20" keywordseo="startup">startup</keyword>. </li><li><keyword id="6354720" type="UNKNOWN" weightage="20" keywordseo="ola">Ola</keyword>’s valuation stays at $5.7 billion. </li><li>The cab-hailing app is reportedly looking to venture into the e-pharmacy segment too.</li></ul>Flipkart co-founder Sachin Bansal has reportedly made his first investment post his exit from the e-tail giant, pumping $91 million into Indian cab hailing <keyword id="152045" type="ORGANIZATION" weightage="20" keywordseo="Unicorn">unicorn</keyword> <a href="https://www.moneycontrol.com/news/business/startup/flipkart-founder-sachin-bansal-takes-a-21-million-ride-in-ola-3387561.html">Ola</a>, which appears to be on a massive expansion spree. Bansal announced his exit from Flipkart after its $16 billion acquisition by Walmart last year. Sachin Bansal, along with former Flipkart Group CEO Binny Bansal, famously grew Flipkart from a two-bedroom apartment business to one of <keyword id="3658" type="COUNTRY" weightage="20" keywordseo="India">India</keyword>’s biggest e-retail giants. He reportedly sold his 5.5% stake for $1 billion in the sale Bansal had initially pumped in $21million which got him 70,588 series J preferred shares at a price of <a href="https://www.livemint.com/Companies/keHGGkLpfiI2WacfOCysCI/Sachin-Bansal-buys-stake-in-Bhavish-Aggarwals-Ola.html">₹21,250 per share.</a> The investment is said to be a part of Ola’s series J funding round. Ola could be raising <a href="https://yourstory.com/2019/01/ola-set-raise-2b-focus-evs-foodpanda-international-markets/">$2 billion</a> in the round. Ola's current investors include the likes of Tencent, Softbank, Hong Kong-based Sailing Capital among others. It is also reportedly looking at raising money from Singapore-based Temasek. However, with this investment, the valuation of the company stays the same at $5.7 billion. Bansal is reportedly putting in his own money, and not from the new $1 billion VC fund he is said to be raising. It will give Ola a financial heft in fighting its global rival Uber. Not just a cab company Ola, which has thus far focused on cab hailing, has been in a race to become India’s biggest startup and looking at venturing into other businesses. It has experimented with the Electric Vehicle market recently, bringing in <a href="https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/indian-ride-hailing-firm-ola-to-launch-10000-electric-vehicles-over-12-months/articleshow/63780448.cms">10,000</a> EV rickshaws on to Indian roads. Earlier in 2015, the company also tried its hand in food delivery with Ola Cafe. However, it had to shut down operations in just a year. Later in 2017, Ola acquired food delivery startup Foodpanda to stay in the game. Talks were also doing the rounds that Ola is also looking at entering the e-pharmacy segment with the acquisition of Bengaluru-based Myra Medicines. See Also: <a href="https://www.businessinsider.in/indias-two-startup-icons-switch-to-the-other-side-as-venture-capitalists/articleshow/67420444.cms">India’s two startup icons switch to the other side — as venture capitalists</a> <a href="https://www.businessinsider.in/indian-unicorn-flipkarts-board-approves-15-billion-deal-with-walmart/articleshow/64027810.cms">Indian unicorn Flipkart's board approves $15 billion deal with Walmart</a> <a href="https://www.businessinsider.in/how-flipkart-went-from-being-an-online-bookseller-to-indias-biggest-e-commerce-story/articleshow/64100266.cms">How Flipkart went from being an online bookseller to India’s biggest e-commerce story</a>

Watch out Uber. Sachin Bansal gets Ola share after selling Flipkart

<ul><li>In Delhi alone, up to 22,369 acres of space can be saved by adopting rideshare (assuming rideshare substitutes for private cars), which is almost 4 times the size of <keyword id="184708" type="LOCATION" weightage="20" keywordseo="Indira-Gandhi-Airport">Indira Gandhi Airport</keyword>. </li><li>Substituting <keyword id="6425768" type="UNKNOWN" weightage="20" keywordseo="Ridesharing">ridesharing</keyword> for private cars could eliminate between 33%-68% of the total cars on the road and in-turn reduces congestion by 17%-31% across these cities. </li><li>Commuters take 1.5 times longer to travel a given distance during peak hours, compared to travel time during non-peak hours.</li></ul> The Indian government is doing away with the mandate that people require a commercial <keyword id="6361020" type="UNKNOWN" weightage="20" keywordseo="Licence">licence</keyword> to drive taxis, autos, e-rickshaws and two-wheelers (for delivery). This would be good news for many and may also help reduce corruption in the issuance of commercial licenses. Up till now, people had to first get a private licence and then wait one year to get the commercial licence. This roundabout way has been done away with, however, the commercial driving licence remains mandatory for those driving trucks, buses and other heavy commercial vehicles. That said, there are some inhibitions that this move will increase congestion on the roads. Anil Chikkara, an expert on transport issues, told <a href="https://timesofindia.indiatimes.com/india/commercial-driving-licence-not-needed-for-taxis-autos/articleshow/63822859.cms">The Times Of India</a>, “In an ideal condition, one cab replaces at least six private cars and an autorickshaw substitutes over a dozen cars since these are on the move and need little parking space.” And by that logic, this move will help ease the problem. Chikkara’s comment is echoed in a study by <keyword id="136162" type="CITY" weightage="20" keywordseo="Boston-Consulting-Group">Boston Consulting Group</keyword> commissioned by <keyword id="1042120" type="PERSON" weightage="20" keywordseo="Uber">Uber</keyword>, which says ridesharing could help deal with a mammoth problem - parking. If embraced, 760 to 22,000 acres of parking space in four primary cities -- Delhi, Kolkata, Mumbai and Bangalore -- could be used for other purposes. In Delhi alone, up to 22,369 acres of space can be saved by adopting rideshare (assuming rideshare substitutes for private cars), which is almost 4 times the size of Indira Gandhi Airport. According to the report, peak congestion in cities averages 149% which is substantially higher than other comparable cities around Asia. Commuters take 1.5 times longer to travel a given distance during peak hours, compared to travel time during non-peak hours. This is currently estimated to cost a whopping $22 billion per year - and that is only in the four primary cities. Substituting ridesharing for private cars could eliminate between 33%-68% of the total cars on the road and in-turn reduces congestion by 17%-31% across these cities. According to Barney Harford, COO of Uber, "If car ownership trends continue, Indian cities risk coming to a complete standstill in only a few years”. He goes on to say, “Ridesharing can be part of the solution to traffic congestion because it uses technology to get more people into fewer cars. We can unlock our cities and their full potential, but we have to do it together.” A few years back, an average city dweller would baulk at the idea of sharing their taxi with anyone. Cut to 2017-2018, not only is ridesharing becoming acceptable, many in fact consider it to be a preferred way to travel. According to the report, over 79% of the respondents from the four primary cities -- Delhi, Kolkata, Mumbai and Bangalore -- who plan to buy a car in the next five years said that they would reconsider the move, should the affordability and convenience of ridesharing match or exceed that of owning a car. The move will, of course, help Uber and <keyword id="6354720" type="UNKNOWN" weightage="20" keywordseo="ola">Ola</keyword>, who have been trying to push ridesharing in the countries. Not requiring a commercial license will likely help the companies ramp up the number of drivers who sign up for their services.

India just made it easier for people to become Uber/Ola drivers

<ul><li><keyword id="18635" type="ORGANIZATION" weightage="100" keywordseo="Amazon">Amazon</keyword> led a new round of funding for <keyword id="4943836" type="LOCATION" weightage="20" keywordseo="Acko">Acko</keyword>, a digital insurance startup.</li><li>Acko’s main competition comes from sites like PolicyBachat, PolicyBazaar and Easypolicy. </li><li>Flipkart, Amazon’s primary challenger in the Indian market, has its own insurance portal called Sabin Advisors. </li></ul>After losing out on its offer to buy 60% stake in Flipkart, Amazon continues undeterred with its investments in India. The company is restarting its efforts by investing in Acko, a digital insurance startup based in the country. In its new round of funding, Acko managed to raise ₹809 million ($12 million) and also brought on a new investor, Ashish Dhawan, the founder of a private equity firm called ChrysCap. Reports of the US retail giant backing the startup have been <a href="https://tech.economictimes.indiatimes.com/news/internet/amazon-may-back-online-insurance-startup-acko/62322035">brewing</a> since January this year. Earlier, it was speculated that Amazon would come on board as a part of a new financing round of a total of ₹1 billion ($15 million). The actual amount may not be the complete billion, but it does bring Acko’s grand total up to ₹2.8 billion ($42 million). Not to mention, it’s the <a href="https://tech.economictimes.indiatimes.com/news/startups/amazon-leads-12m-funding-round-in-acko/64342454">first</a> investment by Amazon in India’s insurance sector. Founded by <keyword id="3064929" type="ORGANIZATION" weightage="20" keywordseo="Varun-Dua">Varun Dua</keyword>, one of the co-founders of Coverfox (an insurance comparison site), Acko’s main <a href="https://www.owler.com/company/ackogeneralinsurance#competitors">competition</a> comes from sites like PolicyBachat, PolicyBazaar, Easypolicy and PolicyX.com. At this point, they’re all generating more revenue than Acko. To its credit, it did <a href="https://www.owler.com/reports/acko/acko--ola--acko-partner-to-create-in-trip-insuranc/1522914840916">partner</a> with <keyword id="6354720" type="PERSON" weightage="20" keywordseo="ola">Ola</keyword> in April earlier this year to provide an ‘in-trip insurance’ program. Regardless of whether users chose to ride a cab, auto or e-rickshaw, users could opt-in for insurance that would cover the loss of property, medical expenses, ambulance transportation cover etc. The company claimed it was the first of its kind. In the future, it’s <a href="https://tech.economictimes.indiatimes.com/news/startups/amazon-leads-12m-funding-round-in-acko/64342454">possible</a> that Amazon is looking to bring those financial products to retail consumers as well. That’s probably one of the reasons why Flipkart was <a href="https://www.thenewsminute.com/article/amazon-talks-invest-rs-100-crore-online-insurance-startup-acko-technologies-74073">interested</a> in investing in Acko as well, but the deal seems to have landed in Amazon’s lap instead. That isn’t to say that Flipkart isn’t getting into insurance as well. The company was recently acquired by <keyword id="80487" type="ORGANIZATION" weightage="20" keywordseo="walmart">Walmart</keyword>, and had earlier <a href="https://www.thehindubusinessline.com/info-tech/flipkarts-bansals-diversify-kick-off-new-venture-sabin-advisors/article10007641.ece">set up</a> its own insurance business and venture capital funding called ‘Sabin Advisors’ in December, last year. Acko already has backers like Catamaran Ventures, Hemendra Kothari of <keyword id="83987" type="ORGANIZATION" weightage="20" keywordseo="DSP-Blackrock">DSP Blackrock</keyword> and Accel Partners, among others. The plan is that the company’s interface will completely be online, but for insurance claims there will operate offline centres.

Amazon invests $12 mn in Indian insurance start-up Acko

Cab aggregator <keyword id="6354720" type="PERSON" weightage="20" keywordseo="Ola">Ola</keyword> posted a consolidated loss of over Rs 2,311 crore -- about Rs 6 crore a day -- during fiscal 2015-16, on account of heavy advertising and promotional expenses and high employee cost, as per a news report by PTI.The Bengaluru-based firm, which is locked in an intense battle for leadership with US-based Uber, has seen its losses widen about three times from Rs 796.11 crore in 2014-15, Ola said in a filing with the Ministry of Corporate Affairs.<keyword id="2200842" type="UNKNOWN" weightage="20" keywordseo="ANI-Technologies">ANI Technologies</keyword> -- which runs Ola -- did see its revenues registering a stellar growth at Rs 758.23 crore during 2015-16 compared to Rs 103.77 crore in the previous fiscal.Emails by PTI sent to Ola remained unanswered.<keyword id="2385099" type="UNKNOWN" weightage="20" keywordseo="Anchal-Agarwal">Anchal Agarwal</keyword>, co-founder of research and analytics firm <keyword id="4159482" type="UNKNOWN" weightage="20" keywordseo="Tofler">Tofler</keyword> said while the absolute amount of losses have indeed widened, the loss margin has "reduced considerably"."They spent almost Rs 8.5 for every rupee earned in 2014 -15. That number is down to almost Rs 4 for every rupee earned for 2015-16. With the pull-back in incentives etc in recent months, it's possible this has now dropped to levels at par with e-commerce companies that spend roughly Rs 2-3 for every rupee earned," she added.The consolidated numbers include financials of ANI Technologies, Ola Fleet Technologies (leasing business), <keyword id="1062211" type="UNKNOWN" weightage="20" keywordseo="Serendipity-Infolabs">Serendipity Infolabs</keyword> (Taxi For Sure) and Zipcash Card Service (46 per cent ownership).In August 2016, Ola shut down the TaxiForSure (TFS) business, about 18 months after acquiring the rival for USD 200 million.As per the filing, Ola's losses were widened on account of employee related expenses rising over five-fold to Rs 461.60 crore in the said fiscal from Rs 85.16 crore in 2014- 15. Similarly, Ola expanded its advertising and promotional expenditure to over Rs 437.89 crore in 2015-16 from Rs 99.84 crore in the previous year.Both Ola and Uber have loosened their purse strings to bring more riders and driver partners on board, offering them discounted rides and incentives, in a bid to wrest control of the lucrative Indian market.Over the last few years, the explosion of smartphones in India the world s second largest telecom market in terms of subscriber base has made it more convenient for consumers to book a cab on the go through apps and secure payment options.Companies like Ola and Uber have made booking a taxi ride as easy as a couple of quick taps on the phone screen.Since ANI Technologies is not a publicly-traded company, it is not obligated to disclose quarterly performance. It has raised investments of over USD 1.5 billion from investors, including <keyword id="163404" type="COMPANY" weightage="20" keywordseo="Softbank">SoftBank</keyword> Group, Tiger Global, Matrix Partners, Steadview Capital, <keyword id="270604" type="ENTERTAINMENT" weightage="20" keywordseo="Sequoia">Sequoia</keyword> India, Accel Partners US and Falcon Edge.In November, Ola raised about USD 250 million from SoftBank, albeit at a lower valuation of USD 3 billion (compared to USD 4.5 billion earlier). The company's Board has recently approved a proposal to raise another USD 100 million from investors, which it said would be "primarily to fund its expansion plans".Ola, which has a presence in 110 Indian cities compared to Uber's operations in 29 cities, has been aggressively expanding its portfolio of services. It has a number of offerings like Micro (affordable), Mini, Prime (sedan), Lux (luxury), Outstation, Share (shared rides), Auto, Rentals, Shuttle (buses) and e-rickshaw. Ola, which claims to have over 6,00,000 vehicles across cabs, auto-rickshaws and taxis, is also placing big bets on new technologies like electric vehicles to stay ahead of competition

Bleeding bad: Ola roughly spent Rs 4 for every rupee earned during 2015-16

Much like the <a href="http://www.businessinsider.in/searchresult.cms?query=Flipkart&amp;sortorder=effectivedate">Flipkart</a>-<a href="http://www.businessinsider.in/searchresult.cms?query=Amazon&amp;sortorder=effectivedate">Amazon</a> tussle in India’s <a href="http://www.businessinsider.in/searchresult.cms?query=e-commerce&amp;sortorder=effectivedate">e-commerce</a> space, the <a href="http://www.businessinsider.in/searchresult.cms?query=Ola&amp;sortorder=effectivedate">Ola</a>-<a href="http://www.businessinsider.in/searchresult.cms?query=Uber&amp;sortorder=effectivedate">Uber</a> battle in the online cab aggregation sector is also heating up. 
 
Looking to dominate India’s $9 billion industry, both taxi-hailing apps are promising hundreds of millions in new investment, and are willing to go that extra mile to offer Indians a ride, and more. The battle for the Indian market has even been dragged from the streets to the Court. 
 
Here are a few grounds where <a href="http://www.businessinsider.in/searchresult.cms?query=Uber&amp;sortorder=effectivedate">Uber</a> and <a href="http://www.businessinsider.in/searchresult.cms?query=Ola&amp;sortorder=effectivedate">Ola</a> locked horns, just to get a bigger piece of the Indian pie: 
 
Raw Money Power: 
Looking at the lack of adequate public transport in Indian cities, <a href="http://www.businessinsider.in/searchresult.cms?query=Ola&amp;sortorder=effectivedate">Ola</a> and <a href="http://www.businessinsider.in/searchresult.cms?query=Uber&amp;sortorder=effectivedate">Uber</a> have together promised an hefty investment of over $2.25 billion in India. 
 
<a href="http://www.businessinsider.in/searchresult.cms?query=Uber&amp;sortorder=effectivedate">Uber</a> reportedly plans to pump over $500 million by June in India. This is over and above the $1 billion already committed over the past nine months. That is some serious money. 
 
<a href="http://www.businessinsider.in/searchresult.cms?query=Ola&amp;sortorder=effectivedate">Ola</a> hasn’t been left wanting either. It has promised to add another 2,000 cars to its existing fleet of 26,000 in the nation’s capital. It is backed by the likes of <a href="http://www.businessinsider.in/searchresult.cms?query=SoftBank&amp;sortorder=effectivedate">SoftBank</a>, and some of the most cash-rich VCs in the world. 
 
WiFi in Autos? 
<a href="http://www.businessinsider.in/searchresult.cms?query=Ola&amp;sortorder=effectivedate">Ola</a> and <a href="http://www.businessinsider.in/searchresult.cms?query=Uber&amp;sortorder=effectivedate">Uber</a> both began offering in-car WiFi last year. 
 
However, <a href="http://www.businessinsider.in/searchresult.cms?query=Ola&amp;sortorder=effectivedate">Ola</a> has been pulling out all its stock to go up against <a href="http://www.businessinsider.in/searchresult.cms?query=Uber&amp;sortorder=effectivedate">Uber</a>. The company plans to launch WiFi services in the budget cab segment, and even its auto-rickshaws. 
 
Some wonder how that's humanly possible at the current cost. 
 
Legal Battles: 
Interestingly, both taxi aggregators have been in legal wrangles. 
 
In October 2015, <a href="http://www.businessinsider.in/searchresult.cms?query=Ola&amp;sortorder=effectivedate">Ola</a> filed a legal petition, accusing <a href="http://www.businessinsider.in/searchresult.cms?query=Uber&amp;sortorder=effectivedate">Uber</a> of flouting a Supreme Court order demanding app-based taxis in New Delhi switch from running on diesel to using CNG (compressed natural gas). 
 
A few months on, <a href="http://www.businessinsider.in/searchresult.cms?query=Uber&amp;sortorder=effectivedate">Uber</a> recently sued <a href="http://www.businessinsider.in/searchresult.cms?query=Ola&amp;sortorder=effectivedate">Ola</a> for allegedly creating 93,000 fake <a href="http://www.businessinsider.in/searchresult.cms?query=Uber&amp;sortorder=effectivedate">Uber</a> accounts, and tampering its businesses. The company has been seeking around $7.4 million in damages. 
 
<a href="http://www.businessinsider.in/searchresult.cms?query=Uber&amp;sortorder=effectivedate">Uber</a> claims <a href="http://www.businessinsider.in/searchresult.cms?query=Ola&amp;sortorder=effectivedate">Ola</a> employees used bogus accounts to book and cancel a whopping 400,000 rides over the last six months. 
 
<a href="http://www.businessinsider.in/searchresult.cms?query=Uber&amp;sortorder=effectivedate">Uber</a> allegedly had to pay high cancellation charges to drivers due to this. It claims around 20,000 drivers quit the platform in frustration. 
 
<a href="http://www.businessinsider.in/searchresult.cms?query=Ola&amp;sortorder=effectivedate">Ola</a> officials 'categorically deny’ <a href="http://www.businessinsider.in/searchresult.cms?query=Uber&amp;sortorder=effectivedate">Uber</a>'s allegations of fraud. Senior officials Anand Subramanian and Rahul Maroli told Business Insider they 'stand by' their statement. 
 
Accusations: Both <keyword id="6354720" type="PERSON" weightage="60" keywordseo="Ola">Ola</keyword> and <keyword id="1042120" type="PERSON" weightage="60" keywordseo="Uber">Uber</keyword> have been accused of wrong-doing. 
 
Recently, <a href="http://www.businessinsider.in/searchresult.cms?query=Paytm&amp;sortorder=effectivedate">Paytm</a>-backed online transportation app <a href="http://www.businessinsider.in/searchresult.cms?query=Jugnoo&amp;sortorder=effectivedate">Jugnoo</a> alleged Ola has adopted unethical practices against it. In a blog post, the company claims Ola employees made fake bookings, and tried to hamper its operations. 
 
<a href="http://www.businessinsider.in/searchresult.cms?query=Jugnoo&amp;sortorder=effectivedate">Jugnoo</a> CEO Samar Singla has said his team saw a sudden surge in bookings and cancelations. According to him, around 20,000 cancelations were made through 800 accounts over a 10-day period earlier this month. In December, the auto-rickshaw aggregator had accused Ola of poaching employees and driver database in Chandigarh. 
 
Uber has made similar claims against Ola. Ola spokesperson <a href="http://www.businessinsider.in/searchresult.cms?query=Anand+Subramanian&amp;sortorder=effectivedate">Anand Subramanian</a> maintains this to be Uber’s way of ‘payback’ for the legal petition Ola filed, accusing Uber of flouting a Supreme Court order. 
 
Interestingly, Uber’s rivals <a href="http://www.businessinsider.in/searchresult.cms?query=Lyft&amp;sortorder=effectivedate">Lyft</a> and <a href="http://www.businessinsider.in/searchresult.cms?query=Gett&amp;sortorder=effectivedate">Gett</a> had in 2014 complained against the aggregator of making false bookings, and recruiting Lyft and Gett driver partners for its own service. 
 
Experiments gone wrong: 
In an attempt to find new battlegrounds, Ola and Uber both launched their bike-taxi services in India’s Bengaluru on the very same day. 
 It seems both knew of each other’s plans and neither wanted to be left behind. However, neither was fully ready. Several users claimed not a single <keyword id="3149752" type="UNKNOWN" weightage="20" keywordseo="bike-taxi">bike taxi</keyword> was visible. 
 
Both were offering extremely competitive rates. Ola has a per km rate of Rs 2, and a minimum fare of Rs 30. Uber has a per km rate of Rs 3 and a minimum fare of Rs 15. 
 
However, Ola was forced to roll back its service a few days later after the Karnataka state government said that India’s Motor Vehicle Act doesn’t have a provision for two wheelers to be used as taxis. Simply put, the bike taxi services were illegal. 
 
When asked about the same, Ola COO Pranay Jivrajka refused to comment on the issue. 
 
However, Uber bike taxis continue to ply on Bengaluru’s (earlier Bangalore) roads. 
 
This isn’t the first time this has happened. As rival Uber was turning up the heat, Ola started experimenting with hyper-local food and grocery delivery. 
 
It was later forced to shut these and focus on serving its core business. Although, it went on an overdrive, introducing new categories like Micro, Prime, a shuttle bus service and carpooling in a very short span. 
 
Regulatory hassles: 
While Uber has been facing regulatory hassles worldwide, and has the muscle to lobby for friendlier policies, Ola is still pretty new to such complications in business. 
 
Recently, Indian state Karnataka stood firm on not allowing surge pricing for app-based ride hailing services such as Ola and Uber. In the state, online taxi aggregators operate as ride-hailing service under a license obtained under the Radio Taxi Scheme, 1988. 
 
The policy says the charged fare cannot be higher than the fare fixed by the government. That means transport apps have to charge within a band where the upper limit is capped. Ola COO <a href="http://www.businessinsider.in/searchresult.cms?query=Pranay+Jivrajka&amp;sortorder=effectivedate">Pranay Jivrajka</a> told BI the company's 'working together' with the state government to find a feasible solution. 
 
Way back in August, in a major setback to Ola Cabs, the Delhi High Court dismissed its plea challenging a single-judge order upholding Delhi government's ban on such taxi services. 
 
While Ola argued that non-app based taxi organizations also come under the Radio Taxi Scheme, and that Ola doesn’t own these vehicles anyway, the Delhi government had said the All India Tourist Permit (AITP) vehicles that operate under Ola brand are meant for tourist destinations and not point-to-point service in city. 
 
Online taxi aggregators were finally legalized. 
 
Chest Thumping 
Ola and Uber have both thrown around numbers that hardly make sense if put together. 
 
In a recent interview, Ola’s Chief Marketing Officer and Head of Categories Raghuvesh Sarup said, "In three weeks, we have put up a category (Ola Micro) which is already 50% of all of Uber's daily bookings in the country. The rate at which Micro is growing, it will be larger than their entire brand within a month." 
 
On the other hand, Eric Alexander, President of Uber's Asia business, in an interview said his company was on the verge of overtaking Ola in India. "In January last year, we were at five per cent market share. Now, we are right at the edge of 50 per cent. Within next 30 days, we would beat them (Ola). We will surpass them very, very shortly." 
 
The statistics are even more confusing. Ola claims it holds 75% of the Indian app-based taxi-hailing market, with over 350,000 driver partners on its platform across the country, while Uber claims otherwise. 
 
As the cut-throat fight between Uber and Ola continues, some say it’s reminiscent of Uber’s tussle with Lyft in the U.S. The two San Francisco-based rivals were constantly undercutting each other’s tariffs, poaching each other’s drivers and duplicating services. 
 
Let’s just say its the same war, but with some Indian masala.

The Ola-Uber rivalry in India – when
competition became ridiculous

<ul><li>The sale of cars declined in Q2 as per <keyword id="22385027" type="General" weightage="20" keywordseo="SIAM-data" source="keywords">SIAM data</keyword>.</li><li>Good carriers and <keyword id="22337322" type="General" weightage="20" keywordseo="light-commercial-vehicles" source="keywords">light commercial vehicles</keyword> also reported a decline in Q2.</li><li>Two-wheeler sales continued to grow, with both scooters and motorcycles reporting growth.</li></ul>Sales of cars in the country saw a significant decline in the second quarter of FY25, as highlighted by the latest sales data released by the Society of Indian Automobile Manufacturers (SIAM) on Monday. The slowdown in sales was not limited to passenger cars alone. There has also been a decline in sales of <keyword id="23540336" type="General" weightage="20" keywordseo="goods-carriers" source="keywords">goods carriers</keyword>, which dropped by 15.8% during the same period. In the second quarter of this year, 69,514 goods carriers were sold, down from 82,538 units in the corresponding period last year. <div type="Article" hostid="261" msid="113925972" title="September Auto sales – Automakers report a decline, Mahindra and Mahindra overtakes Tata Motors" mstype="2" mssubtype="0"></div> Light commercial vehicles (LCVs) also experienced a notable dip in sales. The segment saw a decline of 10.2% in the second quarter of FY25 compared to the previous year. Between July and September 2024, 1,26,370 light commercial vehicles were sold, compared to 1,53,927 units in the same period last year. This drop across different segments of the auto industry reflects the challenges the sector faces during the current fiscal year. Two-wheeler sales showed a more positive trend. Scooter sales recorded a growth of 16.9% in the second quarter, with a total of 18.32 lakh units sold compared to 15.67 lakh units in the same period last year. Motorcycle sales also increased by 10.2%, reaching 32.09 lakh units compared to 29.13 lakh units in the year-ago quarter. On the other hand, the electric rickshaw (E-rickshaw) segment saw a sharp decline in sales. E-rickshaw sales dropped by 30.7% in the second quarter, with only 7,227 units sold compared to 10,430 units in the same quarter last year. SEE ALSO: <a href="https://www.businessinsider.in/business/auto/news/hyundai-ipo-review-everything-you-need-to-know-about-indias-biggest-ipo/articleshow/114203740.cms">Hyundai IPO review – Everything you need to know about India’s biggest IPO</a> <a href="https://www.businessinsider.in/business/auto/news/the-ola-electric-saga-are-surge-in-complaints-and-declining-market-share-a-wake-up-call-for-bhavish-aggarwal/articleshow/114120828.cms">The Ola Electric Saga: Are surge in complaints and declining market share a wake-up call for Bhavish Aggarwal?</a> <a href="https://www.businessinsider.in/tech/mobile/news/iphone-16-series-allows-users-to-wirelessly-restore-the-firmware-using-an-iphone-or-ipad/articleshow/113455048.cms">iPhone 16 series allows users to wirelessly restore the firmware using an iPhone or iPad</a>

Substantial drop in sales of cars, goods carriers and light commercial vehicles in Q2: SIAM

<ul><li>The Indian auto industry reported a 13% year-on-year increase in sales in February 2024, while reporting a 4.6% month-on-month decline.</li><li>All vehicle segments reported a year-on-year growth in sales during the month of February 2024.</li><li>While the increase in sales is a positive, the elevated inventory levels are a concern, as per <keyword id="20108734" type="General" weightage="20" keywordseo="fada" source="keywords">FADA</keyword>.</li></ul>The Indian auto industry reported a 13% growth in sales in February 2024, with all the segments reporting a growth during the month as per a report by the <keyword id="20163834" type="General" weightage="20" keywordseo="federation-of-automobile-dealers-associations" source="keywords">Federation of Automobile Dealers Associations</keyword> (FADA). While all segments such as the passenger vehicle segment, two-wheelers, three-wheelers, commercial vehicles and tractors reported a year-on-year increase in sales, there was a month-on-month decline, meaning the sales were higher in January 2024. <cmsannotation type="cmsannotation" annotationid="February 2024 auto sales data" comment="subhead" text="February 2024 auto sales data"><keyword id="20786138" type="General" weightage="20" keywordseo="february-2024-auto-sales" source="Orion">February 2024 auto sales</keyword> data</cmsannotation> <table style="border-width: initial; border-style: none;"></colgroup><tbody><tr><td style="border-left:solid #000000 0.5008695000000001pt;border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#000000;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Category </td><td style="border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#000000;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">February 2024 </td><td style="border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#000000;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">YoY change </td><td style="border-right:solid #000000 0.5008695000000001pt;border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#000000;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">MoM change </td></tr><tr><td style="border-left:solid #000000 0.5008695000000001pt;border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Two-wheeler </td><td style="border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">14,39,523 </td><td style="border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">13.25% </td><td style="border-right:solid #000000 0.5008695000000001pt;border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">-1.32% </td></tr><tr><td style="border-left:solid #000000 0.5008695000000001pt;border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Three-wheeler </td><td style="border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">94,148 </td><td style="border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">23.88% </td><td style="border-right:solid #000000 0.5008695000000001pt;border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">-2.82% </td></tr><tr><td style="border-left:solid #000000 0.5008695000000001pt;border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Passenger vehicles </td><td style="border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">3,30,107 </td><td style="border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">12.36% </td><td style="border-right:solid #000000 0.5008695000000001pt;border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">-16.06% </td></tr><tr><td style="border-left:solid #000000 0.5008695000000001pt;border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Tractors </td><td style="border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">76,626 </td><td style="border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">11.00% </td><td style="border-right:solid #000000 0.5008695000000001pt;border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">-13.58% </td></tr><tr><td style="border-left:solid #000000 0.5008695000000001pt;border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Commercial vehicles </td><td style="border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">88,367 </td><td style="border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">4.78% </td><td style="border-right:solid #000000 0.5008695000000001pt;border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">0.94% </td></tr><tr><td style="border-left:solid #000000 0.5008695000000001pt;border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Total </td><td style="border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">20,29,541 </td><td style="border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">13% </td><td style="border-right:solid #000000 0.5008695000000001pt;border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">-4.61% </td></tr></tbody></table> Source: FADA <cmsannotation type="cmsannotation" annotationid="Passenger vehicles report record numbers" comment="subhead" text="Passenger vehicles report record numbers">Passenger vehicles report record numbers</cmsannotation> According to the report, the passenger vehicle segment reported a 12% year-on-year growth in February 2024, achieving the highest sales figures ever recorded for the month of February. This was reportedly fuelled by the launch of new vehicles and the availability of vehicles at showrooms. However, FADA has pointed out that persistent elevated inventory levels, which are currently at 50-55 days, present a slight concern. The report states that OEMs should adjust the production to mitigate the high inventory levels. High inventory levels increase the financial burden on dealers. <cmsannotation type="cmsannotation" annotationid="Two wheelers receive a boost from rural sector" comment="subhead" text="Two wheelers receive a boost from rural sector">Two wheelers receive a boost from rural sector</cmsannotation> The two-wheeler segment reported a 13.25% year-on-year growth in February 2024 but reported a decline of 1.32% when compared to January 2024. The growth in this segment was driven by increased demand from the rural sector, demands for premium models and the strong performance of entry-level models. <cmsannotation type="cmsannotation" annotationid="Three-wheelers get an electric boost" comment="subhead" text="Three-wheelers get an electric boost">Three-wheelers get an electric boost</cmsannotation> The three-wheeler segment reported a growth of 24% year-on-year in February 2024, with electric vehicles making up 54% of this growth. The growth in this segment was driven by first-time users and a shift towards electric e-rickshaws. <cmsannotation type="cmsannotation" annotationid="Outlook cautiously optimistic" comment="subhead" text="Outlook cautiously optimistic">Outlook cautiously optimistic</cmsannotation> The near-term outlook in the auto sector is cautiously optimistic. All the sectors are optimistic about increased demands amid the rural sector's robust signals, e financial year-end rush and infusion of funds into the market. The anticipation of elections however casts a shadow, especially in the commercial vehicles segment. “External factors like crop failures in rural areas could also dampen market sentiment and financial liquidity, posing additional hurdles to sustained growth,” said FADA. SEE ALSO: <a href="https://www.businessinsider.in/tech/mobile/news/nothing-phone-2a-smartphone-debuts-in-india-priced-starting-at-23999/articleshow/108240037.cms">Nothing Phone (2a) smartphone debuts in India, priced starting at ₹23,999</a> <a href="https://www.businessinsider.in/business/auto/news/electric-two-wheeler-sales-grow-by-24-in-february-2024-ola-electric-leads-with-over-40-market-share/articleshow/108227956.cms">Electric two-wheeler sales grow by 24% in February 2024, Ola Electric leads with over 40% market share</a> <a href="https://www.businessinsider.in/business/auto/news/upcoming-cars-launching-in-india-in-march-2024/slidelist/108095936.cms">Upcoming cars launching in India in March 2024</a>

Retail auto sales grow by 13% in February, but elevated inventory levels a concern

<ul><li>Finance Minister <keyword id="129243" type="PERSON" weightage="20" keywordseo="Nirmala-Sitharaman">Nirmala Sitharaman</keyword> income tax deduction of ₹1.5 lakh on the interest paid on loans taken to purchase <keyword id="6354973" type="UNKNOWN" weightage="20" keywordseo="electric-vehicles">electric vehicles</keyword>. </li><li>Under the Phase II of the FAME Scheme, the government will also build the necessary charging infrastructure.</li><li>In March 2019, the government had also announced incentives for EV manufacturers and consumers under the FAME-I scheme.</li></ul>In the Union Budget, Finance Minister Nirmala Sitharaman pushed for the Indian Electric Vehicles mission. In an attempt to make EVs popular, the finance minister announced tax subsidy for people who buy EVs. “To make electric vehicles affordable to consumers, our government will provide additional income tax deduction of ₹1.5 lakh on the interest paid on loans taken to purchase electric vehicles. This amounts to a benefit of around ₹ 2.5 lakh over the loan period to the taxpayers who take loans to purchase electric vehicles,” said Sitharaman. The Modi government has been bullish about the adoption of EVs in India. In March, the government announced incentives for EV manufacturers and consumers under the FAME-I scheme. The conditions were that at least 40% of the inputs that bus manufacturers use, have to be made in India. The limit will be higher at 50% for other electric vehicles such as two-wheelers, three-wheelers, cars and e-rickshaws. The proportion will be based on the on ex-factory price of the vehicles. The Minister during her budget said that Phase-II of FAME Scheme, following approval of the Cabinet with an outlay of ₹10,000 crore for a period of 3 years, has commenced from 1st April, 2019. “The main objective of the scheme is to encourage faster adoption of Electric vehicles by way of offering upfront incentive on purchase of Electric vehicles and also by establishing the necessary charging infrastructure for electric vehicles. Only advanced battery and registered e-vehicles will be incentivized under the Scheme with greater emphasis on providing affordable and environment friendly public transportation options for the common man,” she said during the speech. According to <a href="https://www.moneycontrol.com/news/india/cabinet-approves-rs-10000-crore-package-for-phase-ii-of-fame-scheme-3596961.html">reports</a> under Phase 1 of the FAME scheme, which was launched in 2015, a whopping 2,65,335 electric/hybrid vehicles were given a boost through “demand creation” and steps taken under “charging infrastructure and technological support”. This will come as good news for the auto industry players like <keyword id="42747" type="CITY" weightage="20" keywordseo="Tata-Motors">Tata Motors</keyword> and Mahindra &amp; Mahindra, <keyword id="44883" type="CITY" weightage="20" keywordseo="Maruti-Suzuki">Maruti Suzuki</keyword> and Hyundai who have been facing a slowdown in sales. Their electric vehicle segment might see renewed interest from consumers after today’s announcements. Startups like Ather Energy, Tork and even the recently turned unicorn Ola Electric too will gain from the incentives provided in the Budget. “The Government’s focus on Electric Mobility and EVs in the <keyword id="6147670" type="UNKNOWN" weightage="20" keywordseo="budget-2019">Budget 2019</keyword> is inspiring. Lower GST rate, interest subvention for EV loans and the commitment of ₹10,000 crore towards FAME 2 are encouraging. This further reinforces Ola’s mission to build Electric Mobility for India and the world and contribute toward making our nation, the global hub for innovation in this space," said Bhavish Aggarwal, Co-founder &amp; CEO of Ola.

Tata Motors, Maruti, Mahindra will benefit from tax deductions on electric vehicles

<ul><li><keyword id="6358977" type="UNKNOWN" weightage="20" keywordseo="swiggy">Swiggy</keyword> delivered 1.5 million food orders in March only on cycles. </li><li>The maximum delivery partners in cycles were in Bangalore followed by Mumbai. </li><li>Swiggy is also piloting delivery through EVs. </li></ul>Indian delivery <keyword id="6362513" type="UNKNOWN" weightage="20" keywordseo="startups">startups</keyword> have been taking a turn towards “green” delivery by switching to <keyword id="6354973" type="UNKNOWN" weightage="20" keywordseo="electric-vehicles">electric vehicles</keyword> and cycles. <keyword id="3105315" type="PERSON" weightage="20" keywordseo="Foodtech">Foodtech</keyword> unicorn Swiggy introduced food delivery on cycles in 2017, and it seems to have finally taken off now. Swiggy reported that in March it delivered 1.5 million food orders on cycles. In tier 2 and 3 cities like Surat, Belgaum, Guwahati and Lucknow over 20% of Swiggy’s delivery partners use cycles for delivery. In India, 10,000 delivery partners use cycles, with maximum cyclists in Bangalore followed by Mumbai. “A couple of years back, we initiated concerted efforts to make millions of our deliveries more sustainable for the environment. With close to 10,000 delivery partners on cycles each day, we have found that in some of our cities, the average travel time for a delivery partner on cycles is even lesser than bikes or scooters,” said Srivats TS, VP, Marketing, Swiggy. Swiggy’s competitor Zomato too had introduced delivery through bicycles in February 2019. According to <a href="https://inc42.com/buzz/zomato-enrols-bicycles-e-bikes-for-delivery-in-12-cities/">reports</a>, Zomato had partnered with startups like Mobycy, Yulu, Zoomcar’s PEDL among others to start the delivery service. The next mile of delivery For delivery startups, fast innovation is defining their stand in the industry. Swiggy is piloting the use of Electric Vehicles for its deliveries in 10 cities. Last year, Swiggy’s delivery partners in cities like Delhi and Lucknow carried out deliveries on e-rickshaws. The company’s official statement said that the adoption of EVs will reduce the running cost by 40%. Going one step ahead, Zomato had earlier <a href="https://www.thehindu.com/business/Industry/zomato-acquires-drone-delivery-startup-techeagle/article25671762.ece">acquired</a> drone startup TechEagle innovations. With this, the startup is reportedly testing delivery via drones. Meanwhile, logistics startup DOT which offers last mile delivery through e-vehicles has been ramping up its business and is also looking at a <a href="https://www.thehindubusinessline.com/economy/logistics/logistics-startup-dot-eyes-rs-365-crore-revenue-in-fy20/article26356832.ece">revenue </a>of ₹360 crore by 2020. See Also: <a href="https://www.businessinsider.in/ubers-ipo-filing-in-the-us-cites-ola-zomato-and-swiggy-as-threats-to-its-india-business/articleshow/68882407.cms">Uber’s IPO filing in the US cites Ola, Zomato, and Swiggy as threats to its India business</a> <a href="https://www.businessinsider.in/from-swiggy-vs-bigbasket-to-paytm-vs-bookmyshow-indian-startups-are-growing-by-becoming-rivals/articleshow/68351389.cms">Do Swiggy, OYO, and Paytm lack Silicon Valley’s planning and conviction?</a>

Swiggy rides the green wave, delivers 1.5 million orders on cycles; electric vehicles are next

<ul><li>The government is planning to make way for local manufacturing for Electric Vehicles in India. </li><li> Buyers will get direct subsidies of upto ₹88 billion. </li><li>The incentives are expected boost demand for electric vehicles in India. </li></ul>To promote domestic electric vehicle manufacturing, the Indian government is offering incentives to both ends of the automobile market – the makers and the buyer. At least 40% of the inputs that bus manufacturers use have to be made in India. The limit will be higher at 50% for other electric vehicles such as two-wheelers, three-wheelers, cars and e-rickshaws. The proportion will be based on the on ex-factory price of the vehicles. Complying with these norms will ensure that companies receive benefits under the 'Faster Adoption and Manufacturing of Electric Vehicles in India Phase II (<keyword id="105175" type="COMPANY" weightage="20" keywordseo="Fame-India">FAME India</keyword> Phase II)’ scheme, reported <a href="https://tech.economictimes.indiatimes.com/news/corporate/government-tightens-localisation-norms-for-electric-vehicles/68294648">ET</a>. The report further mentioned that direct subsidies of upto ₹88 billion will be given to consumers to promote EVs in India. The scheme is also expected to invest into setting up 300 new charging stations for electric/hybrid vehicle batteries, which will help “in allaying range of anxiety among consumers,” an ASSOCHAM spokesperson had told Business Insider. The Indian government had recently approved the FAME India Phase II scheme, having set aside a budget of ₹100 billion for it. The idea behind the implementation of the scheme is to offer upfront incentive on purchase of electric vehicles and also establish a necessary charging Infrastructure for electric vehicles, according to official documents. The benefits of the scheme will further be given only to those who use lithium ion batteries in their vehicles. This is the second phase of incentives for electric vehicles in India and it is expected to draw around ₹3.5 billion to be invested majorly in R&amp;D and manufacturing of batteries and its components in India. “Part of this allocation will also go towards development of motors using rare-earth magneticmaterials and electronic control systems used in hybrid and electric vehicles,” the spokesperson said. “This is expected to lead to reduction in cost of development of hybrid vehicles and bridge the viability gap.” According to <a href="https://www.moneycontrol.com/news/india/cabinet-approves-rs-10000-crore-package-for-phase-ii-of-fame-scheme-3596961.html">reports</a> under Phase 1 of the FAME scheme, which was launched in 2015, a whopping 2,65,335 electric/hybrid vehicles were given a boost through “demand creation” and steps taken under “charging infrastructure and technological support”. However, infrastructure for electric vehicles is still in the basic stages in India, with the government <a href="https://www.news18.com/news/auto/bjp-government-to-install-electric-vehicle-charging-stations-at-every-25-km-in-india-2040029.html">still planning</a> the installation of charging stations across the country with few successful installations. It can only hope that the second round of incentives achieve the goal. See Also: <a href="https://www.businessinsider.in/uber-and-ola-have-a-new-challenger-in-india-and-its-a-large-car-maker/articleshow/68163955.cms">Uber and Ola have a new challenger in India – and it’s a large car maker</a> <a href="https://www.businessinsider.in/can-latecomer-maruti-suzuki-rev-up-electric-car-sales-in-india/articleshow/67534315.cms">Can latecomer Maruti Suzuki rev up electric car sales in India?</a> <a href="http://cms">India and China in talks to manufacture e-vehicles together</a>

You Searched For "Ola e rickshaw" and got 13 results

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Tata Motors, Maruti, Mahindra will benefit from tax deductions on electric vehicles

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Swiggy rides the green wave, delivers 1.5 million orders on cycles; electric vehicles are next

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