You are here: Home » Companies » News
Business Standard

Ola claims Micro offering bigger than Uber in India

Launched 7 weeks ago, the service is now available in 75 cities; Both Olaand Uber don't share data to validate claims

Ola, Uber

Alnoor Peermohamed  |  Bengaluru 

Ola and Uber pilot bike taxi services in congested Bengaluru

India's largest online taxi hailing firm Ola claims that its newest and most affordable category Micro is now bigger than the local unit of global rival Uber in terms of daily rides. Ola, which launched Micro just seven weeks ago, has now expanded the service across 75 cities in the country.

"In just under 7 weeks of its launch, Ola Micro alone as a category, is larger than our nearest competitor as a whole," said Raghuvesh Sarup, chief marketing officer and head of categories at Ola. "It has broken all the records and has become the fastest growing category on our platform."

Three weeks into the launch of Ola Micro, the company had claimed that the category was nearing the mark where it would be half as big as Uber and would overtake it a month's time. The statement at that time was seen as a retort to Uber's claims that it would overtake Ola by April.

Micro's meteoric rise to success according to Ola is due to its affordability - it costs Rs 6 per kilometer. "Two-thirds of the people riding on Ola Micro are new customers, while the remaining one-third are customers who were earlier inactive on our platform," added Sarup.

Ola did not share data to prove its claim citing confidentiality.

Uber too declined to share data on the number of rides it was fulfilling in India on a daily basis.

Uber claims its rise in India has been just as vigorous. Eric Alexander, president of business in Asia for Uber, told Livemint in an interview in March that the company had grown from 5 per cent market share in January to a 50 per cent share by March.

"We are excited to see the growth and momentum we have picked over the last few months becoming the most popular ride-hailing app in India. It's all possible because of the product and technology that provides better value to our riders and drivers using our platform," said an Uber spokesperson on Wednesday.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Wed, April 27 2016. 18:58 IST