Aiming to wrest control of India’s booming taxi market, two cab-hailing smartphone apps — Uber and Ola — are promising hundreds of millions in new investment while also facing off with one another in court.
San Francisco-based Uber reportedly plans a $500 million infusion of new funds, apart from the $1 billion already committed over the past nine months, according to Indian newspapers.
The company declined last week to comment on those reports. Meanwhile, Ola Cabs promises to add another 2,000 cars to the fleet of 26,000 it already commands in New Delhi, chief spokesman Anand Subramanian said.
But it’s the ongoing legal wrangles between the two — with each accusing the other of behaving unethically — that have drawn focus to the struggle for India’s $9 billion taxi industry and future growth possibilities in a country with an urban population of 400 million people but few options in safe, convenient public transportation.
Last month, Uber filed suit against Ola, accusing its Bangalore-based rival of hijacking its business by creating fake accounts to make bookings with Uber that it then canceled. Ola denied the allegations, calling them ludicrous and suggesting they were a smoke screen to hide Uber’s own troubles. Read More