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<keyword id="1042120" type="PERSON" weightage="100" keywordseo="Uber">Uber</keyword> and <keyword id="6354720" type="PERSON" weightage="100" keywordseo="Ola">Ola</keyword>, the two leading cab service providers in the country, have been in a constant battle because of their intense competition in the once fast-growing industry, and now, they have decided to further heat up the competition by launching specific services that target the value-conscious customers. 
 
Uber will be further investing in low-cost riding options like carpooling, bike taxis and auto rickshaw services so that he can appeal to a larger section of the society. "We want to make transportation available for everyone and cabs may not always be the most affordable option for all segments," said Amit Jain, VP, Uber India, about its decision to launch bikes and ricks for its customers. 
 In reply of this, Ola has come up with cheapest taxi-hailing service, called <keyword id="3291107" type="UNKNOWN" weightage="100" keywordseo="Ola-Micro">Ola Micro</keyword>, which provides smaller hatchbacks at minimum prices. "(It) will be the most pocket friendly mode of intra-city cab travel," said Pranay Jivrajka, Chief Operating Officer at Ola. 
 
One area where these companies are constantly facing regulatory pressure is surge pricing, their commonly used tool where cost of a cab ride increases during peak hours. It was only last week that the Karnataka state government declared that surge pricing for app-based ride-hailing services would not be allowed. 
 
This has happened because surge pricing makes the fare and other charges higher than the fare fixed by the government, which is against the rules. 
 
The competition has intensified also because of the demand for taxis going down, forcing the taxi app companies to increase the customer base for other products. "In order to tap customers who use public transport, there is a need to give economical and faster option for shorter distances," Jaspal Singh, founder of transportation consulting firm Valoriser Consultants, told ET.

Demand for taxis go down, forcing Uber and Ola to launch innovative services to remain relevant

<keyword id="6354720" type="PERSON" weightage="20" keywordseo="Ola">Ola</keyword> is continuing talks with several investors to raise funds and recently it picked up around $50m from a New York-based hedge fund. India's largest taxi aggregator Ola raised funds from hedge fund Tekne Capital Management, and the funding is expected to take Ola’s valuation to over $3 billion. The latest round comes after Ratan Tata's RNT Capital Advisors and US hedge fund Falcon Edge infused money in the startup. "Ola continues to be in talks with various investors, including Coatue Management for this round," a source familiar with the development told ET. As per reports, Ola’s market share in India will be around 65%, with Uber holding the rest. Ola is going aggressive in the country and is working on several projects, including introducing electric vehicles in cities. The latest funding also comes after Uber is embroiled in a cultural row. Uber has also been slapped with an intellectual property lawsuit from Google's parent Alphabet-owned Waymo.

Ola raises nearly $50 million from New York-based hedge fund; valuation to go over $3 billion

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

Taxi aggregator <a href="http://www.businessinsider.in/searchresult.cms?query=ola&amp;sortorder=effectivedate">Ola</a> has applied for a city <a href="http://www.businessinsider.in/searchresult.cms?query=taxi+licence&amp;sortorder=effectivedate">taxi licence</a> in national capital, New Delhi under the name <a href="http://www.businessinsider.in/searchresult.cms?query=ola+fleet&amp;sortorder=effectivedate">Ola Fleet</a>. 
 
The app-only cab aggregator had applied for the licence on June 1 and the permit typically takes 30-40 days to be granted. 
 "New Delhi is one of the top three cities for both <keyword id="6354720" type="PERSON" weightage="20" keywordseo="Ola">Ola</keyword> and <a href="http://www.businessinsider.in/searchresult.cms?query=uber&amp;sortorder=effectivedate">Uber</a>," ET quoted one of the sources as saying. 
 In July only, Ola got a licence to operate as an "on-demand transportation aggregator" in Bengaluru, whereas <keyword id="1042120" type="PERSON" weightage="20" keywordseo="Uber">Uber</keyword>'s application was rejected due to incomplete paperwork. 
 
"While Ola is trying to legalise its models to be on the right side of the government and investors, Uber is hitting the court with recommendations to the scheme and hoping to maintain the status quo till favourable regulations are passed," an official told ET. 
 
READ ALSO: <a href="http://www.businessinsider.in/Ola-Uber-will-train-one-lakh-drivers-for-government-now/articleshow/53377057.cms">Ola, Uber will train one lakh drivers for government now</a> 
 
Last year, the Delhi government had introduced the city taxi scheme, under which any one licence-holder cannot register more than 2,500 cars and needs to follow conditions such as installation of <a href="http://www.businessinsider.in/searchresult.cms?query=GPS&amp;sortorder=effectivedate">GPS</a> devices, taxi meters and fare regulation. 
 
Also, licence-holder will have to ensure every taxi is a motor cab with a valid fitness certificate issued by the transport department, is driven on CNG, LPG, has an engine capacity of 600 cc and above and a seating capacity not exceeding seven, inclusive of the driver. 
 
"Already, both companies have created an incentive structure in a way that makes it impossible for drivers to work with both the companies. With the leasing model, both Ola and Uber want to secure supply," Jaspal Singh, cofounder of the transportation sector consultancy Valoriser Consultants, told ET.

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

The last six months saw cab-aggregator company Ola spending much of its time strengthening its core, adding a breadth of services while also bringing on board a global rival of arch competitor Uber as its investor. This has made <a href="http://timesofindia.indiatimes.com/tech/tech-news/Ola-takes-its-Micro-service-to-75-cities/articleshow/52006224.cms">Ola</a> take a lead over its competitor Uber, supported by new categories of low-cost and luxury rides. 
 
Not only this, it has also increased focus on customer experience, and not to forget, it brought on board China's largest taxi-hailing service Didi Chuxing as an investor. 
 
It was in February that Ola launched a new lower-fare category and named it Micro, while also expanding to 75 more cities. This also brought a new league of customers to its portfolio, given that at least 75% of 'Micro' customers used air-conditioned taxis for the first time, as told by Ola spokesperson to ET. 
 
Ola, with 550,000 drivers registered on its platform, claims to command 70% of the market, while arch rival Uber says that it’s got a 50% share. While both Ola and Uber differ in their market share claims, none of them has been able to confirm their claims. 
 
"Ola is fully aware that it can't afford to lose market share," Jaspal Singh, founder of transport-focused Valoriser Consultants, told ET. "It will be difficult for them to get it back. Uber has a strong financial platform and is putting money (into India) aggressively. 
 
<a href="http://i.amz.mshcdn.com/3FhgkBZo0e9jngtwg9HnXbMuzSY=/2016%2F03%2F31%2Feb%2FAP_26011809.8a1e0.jpg">Image source</a>

Low-cost and luxury rides aside, Ola now has finance too to give Uber a tough competition

Leading US asset manager <keyword id="174755" type="General" weightage="70" keywordseo="vanguard" source="Orion">Vanguard</keyword> has further slashed its holding in ride-hailing major <keyword id="6354720" type="General" weightage="100" keywordseo="ola" source="Orion">Ola</keyword> by more than half, which takes the Bhavish Aggarwal-run company's valuation down to nearly $3.5 billion from $7.3 billion at the end of 2021. According to a TechCrunch report, citing Vanguard's filings, the investment firm has cut the worth of its shares in Ani Technologies, Ola's holding firm, by 51.6%. "The asset manager marked down the holding of its Ola shares to $25 million, from the $51.7 million purchase price years ago, the filings showed," according to the report. Vanguard had valued its Ola's shares at about $33.8 million in February this year. In May, Vanguard had slashed Ola's valuation by 35% amid global macroeconomic conditions, reducing its valuation to about $4.8 billion. Ola has raised more than $3.9 billion over the years, according to public data. IPO-bound Ola Electric has also recorded an operating loss of $136 million (roughly Rs 1,116 crore) and revenue of $335 million (roughly Rs 2,750 crore), missing its revenue goal disclosed publicly. The company reported sales of over 1,50,000 electric scooters for FY23, according to a Reuters report. In the first two months of FY23, Ola Electric claimed to have surpassed Rs 500 crore in revenue and was on track to surpass $1 billion by year's end. In January, Ola laid off 200 employees from its <keyword id="6362049" type="General" weightage="80" keywordseo="ola-cabs" source="Orion">Ola Cabs</keyword>, Ola Electric and Ola Financial Services verticals as part of the "restructuring" exercise. Ola joins a growing list of Indian unicorns who have significantly lost their valuations. Invesco lowered Swiggy's valuation by almost half to $5.5 billion in earlier this year while leading US investment firm Fidelity reportedly slashed the estimated worth of its holding in homegrown conversational engagement platform Gupshup by over 20% in a month.

Ola's valuation slashed by more than half by Vanguard

<ul><li>Delhi HC stays <keyword id="701249" type="General" weightage="50" keywordseo="transport-dept" source="Orion">Transport Dept</keyword>'s notice, saving Ola, <keyword id="1042120" type="General" weightage="80" keywordseo="uber" source="Orion">Uber</keyword>, and Rapido from suspension of ride-sharing services.</li><li>A division bench of Justices Suresh <keyword id="15491952" type="General" weightage="50" keywordseo="kumar-kait" source="Orion">Kumar Kait</keyword> and <keyword id="2581533" type="General" weightage="50" keywordseo="neena-bansal-krishna" source="Orion">Neena Bansal Krishna</keyword> directed the <keyword id="62110" type="General" weightage="100" keywordseo="transport-department" source="Orion">Transport Department</keyword> to refrain from taking any coercive measures against Rapido and other ride-sharing platforms.</li></ul>New Delhi, In a major relief to Ola, Uber, and Rapido, the Delhi High Court on Friday put a stay on the public notice and show cause notice issued by the city Transport Department, halting the ride-sharing platforms. A division bench of Justices Suresh Kumar Kait and Neena Bansal Krishna directed the Transport Department to refrain from taking any coercive measures against Rapido and other ride-sharing platforms until a comprehensive policy is formulated. In February, the app-based aggregators were prevented from plying bike taxis on the road without commercial permits. The Transport Department, ordering an immediate halt to the bike taxi services provided by these platforms, had warned that any violation will result in penal action. The public notice by the Transport Department said that the companies defying the orders will be fined up to Rs 1 lakh, as the use of bikes for commercial purposes violated the Motor Vehicles Act, 1988. Following the High Court decision, Uber has expressed its gratitude towards the court's order providing protection to the company against coercive actions regarding its bike taxi service in the capital city. "We welcome the High Court's order to give Uber protection from coercive action on bike taxis in Delhi. This will bring relief to drivers on our platform whose livelihood had been impacted by the ban as also to the hundreds and thousands of riders who choose to ride on Moto for affordability and last mile connectivity. We are committed to serving the city and being the platform of choice for riders and drivers alike," said Uber in a statement. SEE ALSO: <a href="https://www.businessinsider.in/tech/apps/news/is-whatsapp-secretly-listening-to-your-private-conversations-heres-how-to-check/articleshow/100155980.cms">Is WhatsApp secretly listening to your private conversations? Here’s how to check</a> <a href="https://www.businessinsider.in/tech/news/google-pixel-6a-vs-pixel-7a-smartphone-comparison-with-price-and-features/articleshow/100177889.cms">Google Pixel 6a vs Pixel 7a: Is Google's latest mid-ranger worth the extra ₹12,000?</a>

Relief for ride-sharing platforms as Delhi HC put stays on Transport Department notice

Taxi aggregator <keyword id="6354720" type="PERSON" weightage="100" keywordseo="Ola">Ola</keyword> today announced it add over 6,000 new CNG cars as Delhi's odd-even policy makes a comeback on April 15, 2016. This move will help Ola cash in the lucrative Delhi NCR market.<o:p></o:p>

	The company will invest Rs. 200 crores over the next six months to expand the CNG fleet in Delhi-NCR. The firm already has over 20,000 CNG cars on its platform in Delhi-NCR.<o:p></o:p>

	The company has partnered with car dealers from manufacturers including Maruti, Tata, Hyundai, Chevrolet, Nissan, among others. It also has financial institutions like SBI, IDBI and Shri Ram Finance onboard.<o:p></o:p>

	"We'll add 2,000 CNG cars every month to keep up with the demand for affordable mobility in the Capital", Anand Subramanian, Senior Director - Marketing Communications at Ola said.<o:p></o:p>

	In the past few months, Ola has been aggressively expanding the number of driver partners and CNG cars in Delhi-NCR post the crackdown on diesel taxis plying in the capital. Ola switched to CNG only in Delhi from September 2015. 
	 
	<a href="http://media2.intoday.in/btmt/images/stories/ola-bhavish-aggarwal,-ceo,-co-founder-reuters_660_070615031311.jpg">Image source</a><o:p></o:p>

You Searched For "uber vs ola" and got 8 results

Demand for taxis go down, forcing Uber and Ola to launch innovative services to remain relevant

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Ola raises nearly $50 million from New York-based hedge fund; valuation to go over $3 billion

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

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Low-cost and luxury rides aside, Ola now has finance too to give Uber a tough competition

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Relief for ride-sharing platforms as Delhi HC put stays on Transport Department notice

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Ola adds 6,000 CNG cars as Delhi's Odd-Even returns on Apr 15

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