London's transportation regulator has just granted the Indian ride-sharing firm Ola a license to operate this week, essentially giving the company the opportunity to go against its largest foreign rival, Uber.
The Indian ride-sharing startup is set to go against its much larger competitor in one of its most lucrative markets in Europe.
The Bangalore-based firm received its license to operate on Thursday, marking its official entry into the UK capital. The license is similar to the ones being given to other ride-hailing firms, spanning only 15 months.
The company is reportedly now starting its recruitment process just a few months ahead of its planned launch in late summer or early fall. Its acquisition of a license to operate is a big deal for Ola, given that London is one of the biggest markets for ride-hailing services.
This fact is well known to Uber, which gets a good chunk of its bookings from the city. London is currently one of five major cities under Uber's belt, which accounts for nearly a quarter of its revenue. The other four major cities that are part of Uber's most lucrative markets include New York, San Francisco, Sao Paulo, and Los Angeles.
Apart from Uber, Ola will be facing off with a myriad of other ride-hailing services, which had also recently been granted licenses to operate in London. Last month, ride-hailing service provider Bolt, formerly Taxify, reentered the London market.
Meanwhile, a new French startup called Kapten is also expected to enter the lucrative market very soon. The startup is being backed by both BMW and Daimler, a combo that has created quite a buzz around the new company.
Unlike other smaller startups that have entered the UK market, Ola is seen as the biggest threat to Uber's dominance in London. The company, which is a giant in its own right in India, has been quite busy in expanding its operations.
The company recently made moves to expand its operations in countries such as New Zealand and Australia. Ola also already has active operations in other UK cities. The company currently has around 10,000 drivers working for it in cities such as Bristol, Liverpool, and Reading.
As part of its attempt to penetrate the market in London, Ola is reportedly planning to offer massive discounts during its debut. The company is also reportedly going to be giving drivers a much larger cut, a move that is aimed at bolstering its recruitment within the city. As it settles down into the new market, Ola's fares will eventually be comparable to other services such as Uber.
