The taxi-ride market in India is just witnessing its tough
competition between two giants. The Uber and the Ola had dominated the Indian
market for taxis almost to saturation. Now the American Silicon Valley startup
is battling for its ground with the home-turf startup Ola cabs.
Uber had been running into many problems lately which
included rape charges on its drivers, market shrink due to newer entrants and
also price war with Ola cabs. But the well-funded startup was undeterred by
these. But now the departure of personnel from the company has put the company
in tough times. Jeff Jones is the latest to depart the ride-sharing business as
president of marketing and public image. He will be followed later by the VP of
maps and Uber application platform Brian McClendon.
Uber has raised more than $8billion in funding as compared
to Ola cabs, which raised about a fourth of that. But Ola plans to counter this
using improvement in its user experience. It has presence in over 100 cities
across India compared to 29 of Uber. It employs its own map system which is
inspired by the fact that various places in India don’t have a proper name to
be put on the map. Also it offers its services in more than 20 languages across
India. Ola is using its home-grown potential to its advantage.
This will make it difficult for Uber to expand in it. The current
strategy to maintain its footing and bear the attacks until a strong leader
comes at its helm, who can understand the importance of local people and culture.
The huge capital surplus can help in cushioning the blows. But Ola can go
all-out offensive in this situation and gain new turfs.
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