Ola is set to enter the U.K. market as the Indian ride-hailing app operator steps up competition with rival Uber. Ola, which had obtained a license to operate in South Wales and Greater Manchester, said it would start operations within the next month. The start-up hopes to expand across the rest of the U.K. by year end.
The ride-hailing firm will offer both private hire vehicles and black cabs on its platform and said more options would be added in the future. Announcing its entry, Ola sought to attract drivers in South Wales and Greater Manchester, emphasising low introductory commission rates for both private hire and metered vehicles.
“We’re bringing Ola to the UK! Very excited to offer a responsible, new ride-hailing service to one of the world’s most sophisticated transportation markets & one that we share so much history. It’s a momentous moment,” tweeted Bhavish Aggarwal, who co-founded the company in 2011. Ola has over 1 million drivers and 125 million customers across 110 cities and says 1 billion rides are made through the app annually. Earlier this year, Ola made its first foray beyond India, as it ventured into Australia, where it now has more than 40,000 drivers operating across 7 cities.
Common investor
Like Uber, which operates across the U.K., Ola is backed by Japan’s SoftBank Group. While the U.K. is a key market for Uber, it has also faced criticism over passenger safety and treatment of drivers.
Last month, a court granted Uber a 15-month extension to its London license, after Transport for London (TFL) initially stripped the U.S. firm of its license last year. However, the U.S. firm’s legal woes continue as the Licensed Taxi Drivers Association said it was seeking advice about potential class action against Uber, over losses to earnings.
Uber has also won considerable public backing: more than 8,00,000 had signed a petition urging TFL to change their decision.
Separately, Ola sought to address some of the concerns around ride sharing apps, promising that it would put in place industry-leading passenger safety measures, including drivers screened by Britain’s Disclosure and Barring Service, 24/7 voice support, options to share ride details with emergency contacts and in-app emergency features.“Ola is recognised for its collaborative approach, working with national governments and local authorities, to help solve transport mobility issues in innovative and meaningful ways,” the company said in a statement.
“We look forward to our continued engagement with policymakers and regulators as we expand across the country and build a company embedded in the U.K.,” said Mr. Aggarwal. A spokesperson for TFL said they worked closely with technology companies around the world to “support innovation that could complement transport in London. Our regulation of London’s taxi and private hire trades ensures passenger safety, with private hire operators having to demonstrate they meet rigorous standards in order to operate. We do not comment on individual licence applications.”
