The transportation industry was revolutionised by the birth of Uber Technologies Inc. The way we everyday used to commute has now completely changed. Instead of booking a cab on very urgent time we are now inhabited to using it daily. People in metro cities prefer Uber and Ola over the auto rickshaw. Lower cost combined with comfortable commute has resulted in the increase of these startups. The cab drivers are using the platforms aggressively to grow their revenue. With Uber and Ola on scene the number of cab drivers has risen. India being a great market for Uber, it is giving a fierce and tough battle to the Indian born Ola.
Everything was going smooth until one day the news came that Uber has decided to withdraw its operations from China. Uber bought stake in Didi Chuxing and sold their Chinese operations to them. This sure is a huge scar on to the ego Uber but still is considered a smart move. Uber was losing the battle in China which was making it bleed of $1 billion every year. From now onwards Uber is present in Chinese market passively. Didi on the other hand is playing the game very safely and has invested a billion dollar in Uber. Didi already has stake in Lyft, Ola, Grab and now Uber. With the investments made in every market Didi is passively working in them by taking a very smart business move.
In India Ola is the undisputed king of the industry. Ola has presence in more cities and also was first to introduce cash which is more preferred in the country. It is true that Ola is not economically a competition for Uber as Didi was. Uber currently is working a way out by adjusting to financial loses in the country hoping to win the battle as Ola runs out of money. There is still a probability that Uber might do the same as buying a big stake in Ola and still work passively in Indian market or it is even possible that it may buy Ola. The second option is highly unlikely to happen while uncertainty being the king, anything can happen.
The battle has cost both the companies a huge sum of investors’ money. Uber already has a very big pressure to go public. The future of this industry in uncertain in India but one thing is sure, the consumer is the king and undisputed winner of this war.