The single integrated app across the four companies will start rolling by March.
The deal will allow the partners to leverage each other’s technology, local market knowledge and business resources, allowing customers travelling abroad to hail rides through their own apps instead of installing individual apps while travelling. The Alibaba-Softbank alliance firms have drawn investments of $7.29 billion, and are valued at $25.1 bn.
Uber pioneered the asset-light taxi-hailing app concept. It has drawn investments of $8.21 bn since its inception, but its value is double that of the combined value of the alliance at $51 bn.
SoftBank, which counts Ola as one of its largest portfolio companies in India, has also invested in GrabTaxi and Didi Kuaidi, while Chinese e-commerce giant Alibaba has invested in Didi Kuaidi and Lyft. Formation of the anti-Uber alliance became more obvious when Didi Kuaidi participated in Ola’s latest $500-million funding round in November. The push could potentially help Lyft, a laggard in the US, attract foreign travellers to leverage on its partners’ success in their home countries.
“We are excited to partner with Lyft, Didi Kuaidi and GrabTaxi, allowing seamless mobility access across hundreds of cities globally for our combined user base that runs into hundreds of millions,” said Bhavish Aggarwal, co-founder and chief executive of Ola.
“They are welcome. Let’s see what then can do together what they could not do alone. I would say, bring it on,” said Amit Jain, head of India for Uber.
Uber, a late entrant in India, has 250,000 drivers on its platform and has committed $1 bn to expand its operations in the country. It claims a market share of 40 per cent, while Ola claims share of 80 per cent. Didi, the biggest player in China, owns 83 per cent of the market.