SoftBank-backed Ola launches in the UK to challenge Uber

Bhavish
Aggarwal, chief executive of Uber’s main rival in India,
Ola
Shailesh
Andrade/Reuters

• Indian ride-hailing startup Ola plans to launch in the
  UK and take on Uber.
• Ola will initially launch in Greater Manchester and
  south Wales but is yet to submit an application for a London
  licence.
• Uber is the dominant ride-hailing company in the UK,
  with around 5 million customers.
• The launch means a major investor in both Ola and Uber,
  SoftBank, is effectively going to war with itself.

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Indian ride-hailing company Ola plans to launch in the UK,
signalling more competition for incumbent Uber.

Ola will open operations in Greater Manchester and south Wales,
including capital Cardiff, within the next month. The company
said it was working with regulators to launch nationwide by the
end of the year, but is yet to submit an application for a London
licence.

Like Uber, Ola operates a ride-hailing service through an app and
relies on the availability of contracted drivers. It is
hugely popular in its home market of India, where Uber also
operates. Uber has around 5 million customers in the UK, while
Ola says it has about 125 million outside the UK.

Ola’s launch means its biggest investor is effectively going to
war with itself in the UK. Both Ola and Uber share a major
backer: Japanese tech conglomerate SoftBank. Ola was reportedly

raising $2 billion from SoftBank and other investors last
October, and the Japanese firm
took a 20% stake in Uber at the beginning of this year.

Like every similar service, Ola has come in for criticism for
the way
it treats drivers in terms of pay and their employment
status. The company said people can hail both private hire
cabs and black taxis through its app. This is a differentiator
from Uber, which only offers private hire vehicles.

Ola claimed it offered “higher earnings and daily payments,” but
didn’t give further details. Business Insider has requested
clarification. The company also said its drivers are fully
screened, and that it offers 24-hour support to passengers,
options to share ride details with contacts, and in-app emergency
features.

Bhavish Aggarwal, chief executive of Ola, said in a statement:
“Ola is excited to announce its plans for the UK, one of the
world’s most evolved transportation markets. The UK is a
fantastic place to do business and we look forward to providing a
responsible, compelling, new service that can help the country
meet its ever demanding mobility needs.”