After entering Australia earlier this year, home-grown taxi hailing company Ola is now set to ride into the United Kingdom, where it has obtained licences to operate in South Wales and Greater Manchester region.
SoftBank-backed Ola says it will start operations in South Wales within the next month and it is working with local authorities across the UK to expand nationwide by the end of 2018.
“Ola will be the only ride-hailing app in the UK that offers passengers the option of private hire vehicles and black cabs through one consumer-friendly platform, which will in future see additional transportation options incorporated for greater passenger choice,” the Bengaluru-based company said on Tuesday.
Founded in 2011 by Bhavish Aggarwal and Ankit Bhati, Ola offers services in more than 110 cities in India through cabs, auto rickshaws and local taxis.
In February this year, the taxi aggregator had driven into Australia where it now operates in seven cities. The company claims 40,000 drivers across Australia have registered on its platform since the launch there and have completed “millions” of rides.
Starting Tuesday, Ola is inviting private hire vehicle and metered taxi drivers in the cities of Cardiff and Newport in South Wales and in the Vale of Glamorgan to register with Ola before the platform is opened for public later. Introductory commission rates will be as low as 10 per cent for private hire vehicles and 5 per cent for metered taxis, added Ola.
“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. We look forward to our continued engagement with policymakers and regulators as we expand across the country and build a company embedded in the UK,” said Bhavish Aggarwal, co-founder and CEO of Ola.
The road ahead in the UK will not be easy though. Only in September last year, Transport for London had refused to renew the licence of Ola's rival Uber, stating that the US-taxi aggregator was not a fit and proper operator. Following a court hearing earlier this year, Uber was allowed to operate for 15 months.
In April this year, Ola had acquired Mumbai-based Ridlr, a public transport ticketing and commuting app as part of its efforts to integrate its mobility platform with public transportation infrastructure.
Both Ola and Uber have racked up huge losses over the years having burnt millions of dollars in a cut throat competition to gain an upper hand in the Indian market. Ola has started making money on every ride in India now, Aggarwal said recently.