BackOla to start operations in London next week
The Bengaluru-based company said that it will retain 100% of driver earnings in London for the first six weeks as a promotional programmeLondon will be Ola’s 28th city following its expansion across other British cities such as Birmingham, Bristol and Liverpool
PremiumBENGALURU : Cab hailing platform will officially launch in London on 10 February with over 20,000 drivers in the city. The announcement comes two months after the company began onboarding drivers to take on Uber in UK.
London will be Ola’s 28th city following its expansion across other British cities such as Birmingham, Bristol and Liverpool. Till date, Ola claims to have provided over 3 million rides with more than 11,000 drivers already operating on the platform in the UK.
The Bengaluru-based company said that it will retain 100% of driver earnings in London for the first six weeks as a promotional programme. Ola’s passengers will also receive £25 worth of ride credit for signing up in the first week after the launch, according to a company statement.
The Bhavish Aggarwal-led company had earlier begun operations in foreign geographies including Australia and New Zealand, apart from the UK. Ola had initially received approval from London’s transport regulator in July 2019 to start private hire vehicles (PHV) in the capital city of the UK. Under the PHV system, drivers themselves are required to apply for a licence and list their vehicle as a privately registered vehicle for hire.
“The overwhelmingly positive reception to Ola since launching in the UK in 2018 illustrates the significant demand from drivers, riders and communities. We are working closely with drivers to build a high quality and reliable service for Londoners. Launching in London is a major milestone for us and we are keen to offer a first class experience for all our customers," said Simon Smith, Head of Ola International, in a statement.
Ola counts SoftBank Corp., Sequoia Capital, Accel, and automakers like Kia Motors and Hyundai as its investors. The company is continuing efforts to build a massive war chest to battle deep-pocketed Uber, especially in India. It first entered the UK in August 2018 with licences to operate across South Wales, including in Cardiff, Newport, and Vale of Glamorgan.
Ola’s entry into UK’s capital city and across the country is considered as a biggest threat Uber in the UK, since Ola has raised far more capital than the rest of the app-based taxi operators, Morgan Stanley analysts said in July last year. Apart from Uber, Ola will also take on Daimler AG-backed “Bolt" ride-hailing service in the UL, which received a licence from TLF in June 2019.
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