Uber way behind Ola in India: Bhavish Aggarwal responds to Khosrowshahi

Uber chief had said Ola was foraying into other areas but Uber was focused on ride-sharing business

Ola is stepping up its efforts and is already deep into India, its Founder Bhavish Aggarwal said on Monday as he tore into Uber’s global CEO Dara Khosrowshahi, saying the rival company is far behind in the ride-sharing business in the country.

Aggarwal’s remarks came in response to Khosrowshahi’s interview with a national daily, in which he said that while Ola focuses on other areas (like its electric vehicle business), Uber loves the ride-sharing business. The Uber chief also asserted that he is in this business to win and not be in second place.

Responding to Khosrowshahi’s comments, Aggarwal told Business Standard, “Ola is going nowhere. It is already doubling down and deep into India, and Mr Uber (Khosrowshahi) is behind anyway. If you see his ride-sharing revenues, our revenues were 3x of his in FY23. They are coming from behind and just talking it up, but very little activity on the ground”.

Aggarwal’s response comes as the company is going for a Rs 5,500 crore initial public offering (IPO) — the first in the EV space in the country through Ola Electric. Aggarwal, who has already submitted his draft red herring prospectus (DHRP) to the Securities and Exchange Board of India (Sebi), is trying to get the IPO going before the general elections.

Aggarwal is on a global roadshow and has covered Dubai, Abu Dhabi and Singapore. He is expected to be in the US and Europe in the next few days. The Ola Electric IPO is being watched carefully as many other competitors, including Ather Energy, are readying themselves to take the same route and have started appointing merchant bankers.

According to Entrcakr, Uber’s ride-hailing business accounted for 25 per cent of its total operating revenues in FY23 and hit Rs 679 crore. Its total consolidated revenues were Rs 2,666 crore. In contrast, Ola's ride-hailing revenue, as declared by the company for FY23, was at Rs 1,987 crore, while the consolidated revenues stood at Rs 2799 crore.  For its rides business, Ola recently appointed a CEO in Hemant Bakshi with a clear plan to increase penetration and profitability. It has also become Ebitda positive in the mobility business with a positive Ebitda of Rs 250 crore.