In a bid to take on Ola, which is currently leading the cab aggregation market, Uber is reportedly planning to invest $500 million in its India operations in June. This is in addition to the $1 billion the company had committed to invest in India nine months ago, ET reports. However, Uber still hasn’t utilized all of the $1 billion investment, ET reports. Ola currently has a lead of 15-20 percent lead over Uber, which claims it has 35 percent of the market. Also Read - Uber launches 'Uber Connect' package delivery service to rival Dunzo and Swiggy GenieAlso Read - Uber to operate 'Essential' cab service to hospitals and pharmacy stores in 4 cities
Uber, which currently has US and China as its biggest markets, expects India to be its largest base. The company claims it has over 150,000 drivers registered on its network in India. Uber currently operates in 27 Indian cities and says it is registering a 40 percent month-on-month. With the latest investment, it is planning ramp up its manpower and develop technology solutions focused on the Indian market along with improving quality of services. BGR India has reached out to Uber for the comment on the development.
Uber s recent India specific initiatives include a new engineering centre in Bangalore that caters to issues of the Indian users. It has also signed a pact with the Haryana government under which it plans to invest Rs 120 crore in technology based ride-sharing services.
Ola, on the other hand, has also stepped up its efforts to deal with the fierce competition from Uber. Valued at about $5 billion, the Indian taxi hailing service has raised about $1.2 billion so far, including $500 million led by Baillie Gifford, Falcon Edge Capital, Tiger Global, SoftBank Group, DST Global and China’s biggest taxi aggregator Didi Kuaidi. It may recalled that Didi Kuaidi and Ola are now part of a global taxi hailing group, which is popularly called as the anti-Uber alliance. Members of this group are Lyft (US), Ola (India), Didi Kuaidi (China), and GrabTaxi (South East Asia). According to the deal, the four companies will allow their users to book cabs from each other s apps in markets they operate.
Ola recently launched a service called Micro, which it says will help overtake Uber in the number of rides in a month s time. In three weeks, we have put up a category (Ola Micro), which is already 50 percent 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, Ola chief marketing officer and head of categories Raghuvesh Sarup had said.