Uber or ola, what if uber-ola
Uber and ola are two taxi-market rivals, sometimes we had a situation to choose between them. What if they merge? Ola is most trusted and used app-market in India, then comes uber. As per the data, ola runs 9,00,000 cabs in India. And uber runs 3,50,000. But the ola was facing losses in this market, as it's cost of maintenance, services and other charges are more than fares they applied. According to various data, ola has 56-70% market share in India.
According to the information, in 2017, Uber's operating loss was roughly half of its net revenue Unlike the Ola, but they don't have a customer following has ola has gained by its discount factor. Ola has invested so far in each field like customer satisfaction, drivers incentive etc. Ola spends his 3.40 rupees on a single rupee they earned. As they facing loss in their overall review which is equal to 900 crores in last year. Ola has won the heart of Indian consumers. But it has to resolve the issues with their losses, which can be done by either increasing fares or cut drivers incentive. Both ways lead adverse effects on the market, so it has to be a third way to figure it out.
And one of the ways is to happen this merger. If it happens they control the market as one brand that will eat the smaller market in these race and reduce the question of choice for consumers.
Japanese conglomerate soft bank which consolidating its investments in cab-hailing services across the globe is putting a deal for the merger of ola and uber in India, in which it holds controlling stakes, SoftBank vision fund owns 26% in ola, while its stake in uber is less than in its Ola. Softbank recently invested $2 billion in ola, while it has stakes uber around $1 billion in uber.
As the fact, there is no solid proof for this merger, but it's on their table. Dara, CEO of an uber state that, we'd, of course, look at any deals that can add value to our partners and shareholders, but we believe in controlling our own destiny in India. Many of you seen that Virat Kohli's add-on uber, as an Uber sets to expand in India without the merger.
Rahm Shastry, one of the earliest investors in taxiforsure, which was eventually bought by Ola, said that Softbank is the largest investor in Ola as well, it simply doesn't make sense for the two to endlessly fight for market share and lose money over customer discounts and driver incentives. As these both combine there is only one winner and they can gain more profit by fixing issues which they spending on fixing it.
As in some article state that, The benefits of this merger now decidedly tilt in favour of drivers over consumers. Up until now, the consumers benefited greatly with discounted rides. Now, with the competition out of the way, cab fares will rise and drivers will benefit.”
Ola has started achieving a major milestone by making money on each cab ride, after fixing account expenses - Drivers incentives and customer discounts, etc. But the company still has a long way to go towards profitability, which would mean recovering expenses for salaries and technology, according to the sources briefed on the matter. Ola is targeting profitability by year-end.
Last week, our India business crossed a major milestone, we are now ENTR positive," Ola CEO, Bhavish Aggarwal wrote in an email to his team late last month. ENTR stands for Effective Net Take Rate, an important metric for ride hailings companies.
As Ola taking various steps to in race than to merge. Clearly mentioning the point that the company has not sacrificed top line growth or ceded market share to uber to achieve this goal. As this merger on the table, but they seem rather stay in rivalry than merge. As it seems there is no way these merger happening but in future might happen for solving each others problems.
According to the information, in 2017, Uber's operating loss was roughly half of its net revenue Unlike the Ola, but they don't have a customer following has ola has gained by its discount factor. Ola has invested so far in each field like customer satisfaction, drivers incentive etc. Ola spends his 3.40 rupees on a single rupee they earned. As they facing loss in their overall review which is equal to 900 crores in last year. Ola has won the heart of Indian consumers. But it has to resolve the issues with their losses, which can be done by either increasing fares or cut drivers incentive. Both ways lead adverse effects on the market, so it has to be a third way to figure it out.
And one of the ways is to happen this merger. If it happens they control the market as one brand that will eat the smaller market in these race and reduce the question of choice for consumers.
Japanese conglomerate soft bank which consolidating its investments in cab-hailing services across the globe is putting a deal for the merger of ola and uber in India, in which it holds controlling stakes, SoftBank vision fund owns 26% in ola, while its stake in uber is less than in its Ola. Softbank recently invested $2 billion in ola, while it has stakes uber around $1 billion in uber.
As the fact, there is no solid proof for this merger, but it's on their table. Dara, CEO of an uber state that, we'd, of course, look at any deals that can add value to our partners and shareholders, but we believe in controlling our own destiny in India. Many of you seen that Virat Kohli's add-on uber, as an Uber sets to expand in India without the merger.
Rahm Shastry, one of the earliest investors in taxiforsure, which was eventually bought by Ola, said that Softbank is the largest investor in Ola as well, it simply doesn't make sense for the two to endlessly fight for market share and lose money over customer discounts and driver incentives. As these both combine there is only one winner and they can gain more profit by fixing issues which they spending on fixing it.
As in some article state that, The benefits of this merger now decidedly tilt in favour of drivers over consumers. Up until now, the consumers benefited greatly with discounted rides. Now, with the competition out of the way, cab fares will rise and drivers will benefit.”
Ola has started achieving a major milestone by making money on each cab ride, after fixing account expenses - Drivers incentives and customer discounts, etc. But the company still has a long way to go towards profitability, which would mean recovering expenses for salaries and technology, according to the sources briefed on the matter. Ola is targeting profitability by year-end.
Last week, our India business crossed a major milestone, we are now ENTR positive," Ola CEO, Bhavish Aggarwal wrote in an email to his team late last month. ENTR stands for Effective Net Take Rate, an important metric for ride hailings companies.
As Ola taking various steps to in race than to merge. Clearly mentioning the point that the company has not sacrificed top line growth or ceded market share to uber to achieve this goal. As this merger on the table, but they seem rather stay in rivalry than merge. As it seems there is no way these merger happening but in future might happen for solving each others problems.
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