INSUBCONTINENT EXCLUSIVE:
The UK is getting a new alternative to Uber after India-based ride-hailing company Ola announced plans to expand to the country, which will
become its first market in Europe.
Ola was founded in 2010 and it covers over 110 cities in India where it offers licensed taxis, private
hire cars and rickshaws through a network of over one million drivers
The company has raised around $3 billion from investors that include SoftBank, Chinese duo Tencent and Didi Chuxing and DST Global
It was last valued at $7 billion
Ola ventured overseas for the first time when it launched in Australia earlier this year — it is now in seven cities there — and its
move into the UK signals a further expansion into Europe.
Ola UK service isn''t live right now, but the company said it will begin offering
licensed taxi and private hire bookings initially in South Wales and Greater Manchester &soon.& Ola plans to expand that coverage nationwide
before the end of this year
That will eventually mean taking on Uber and potentially Taxify — another unicorn startup backed by Didiwhich is looking to relaunch in
the UK — in London and other major cities.
So, why the UK
Ola CEO and co-founderBhavish Aggarwal called the country &a fantastic place to
do business& and added that he &look[s] forward to providing a responsible, compelling, new servicethat can help the country meet its ever
demanding mobility needs.
It nosecret that Uber has struggled in London, where its gung-ho attitude to business — ‘launch first,
apologize later& — has seen it run into issues with regulators
Uber (just about) won a provisional 15-month transport license earlier this year following an appeal against the city transportation
regulator, Transport for London (TfL) earlier rejected its application.
The& New Uber& — under CEO DaraKhosrowshahi — is trying to right
the wrongs of the past, but compliance with regulators takes time and requires wholesalechanges to business, operations and company
culture.
Ola isn''t commenting directly on its rivalry with Uber — we did ask, but got a predictable &no comment& — but the tone of its
announcement today shows it is focused on being a more collaborative player than Uber.
Indeed, there been much groundwork
Aggarwal met with regulators in London last yearand he said in a statement released today that he plans &continued engagement with
policymakers and regulators& as the Ola service expands across the UK.
International expansion is very much part of Ola ambition to go
public, whichAggarwal recently said could happen in the next three to four years
But Ola isn''t alone in looking overseas
Didi, the firm that defeated Uber in China and has backed Ola, Taxify and many others, has also been busy moving into new markets.
Last
year,the firm raised $4 billion to double down on technology, AI and go overseasand it has come good on that promise by
enteringMexico,AustraliaandTaiwan
It also landed Brazil throughthe acquisition of local player and Uber rival 99andit is preparing to go live in Japan, whereit will operate a
taxi-booking service through a joint venture with SoftBank.
