Mumbai Thoughts >> I hate the sense of filth in Mumbai ☹ : Sunishi G.    |    I love the street food of Mumbai : Jessica N.    |    I hate the long time of commuting in Mumbai ☹ : Radhika P.    |    I hate the lack of proper urban planning in Mumbai ☹ : Manpreet    |    I love vada pav in Mumbai : Priyesh Y.    |    I hate the lack of nature in Mumbai ☹ : Brinda M.    |    I love the colonial areas of Mumbai : Milesh S.    |    I love that Mumbai always stand united : Aarti G.    |    I hate the corruption of Mumbai ☹ : Arjun M.    |    I hate the lack of open spaces in Mumbai ☹ : Anthony D.    |    I love the culture opportunities of Mumbai : Dupa P.    |    I hate the poor drainage system of Mumbai ☹ : Irsad S.    |    I hate that people are not following traffic rules in Mumbai ☹ : Komal S.    |    I hate the poorly maintained heritage buildings of Mumbai ☹ : Krupa T.    |    I hate the crowded trains of Mumbai ☹ : Raza A.    |    I hate the unclean nature of Mumbai ☹ : Sarit P.    |    I love the holy songs singing in the train in Mumbai : Abhijit    |    I love the honestly of daba walas in Mumbai : Kiran M.    |    I love that Mumbai is a safe place for women : Madhu G.    |    I love the fast life of Mumbai : Manpreet    |    I love Marine Drive in Mumbai : Krupa T.    |    I love the night life of Mumbai : Satish    |    I love that Mumbai is home to so many people and cultures : Arjun M.    |    I love the better employment opportunities of Mumbai : Raza A.    |    I hate the infrastructures of Mumbai ☹ : Rashair C.    |    I love the safety of Mumbai : Radhika P.    |    I love the helpfull population of Mumbai : Riddhi S.    |    I love that Mumbai never sleeps : Rashair C.    |    I love the nightlife of Mumbai : Aditi R.    |    I love the Neo Gothic structures of Mumbai : Faiyar S.    |    I hate the price of real-estate in Mumbai ☹ : Cherylann M.    |    I love the good educational facilities of Mumbai : Stanlay B.    |    I hate the lack of ecofriendliness of Mumbai ☹ : Manpreet    |    I hate the roads potholes of Mumbai ☹ : Arjun M.    |    I hate to see homeless people in Mumbai ☹ : Lester M.    |    I hate the transportation system of Mumbai ☹ : Aarti G.    |    I hate the non provision for cyclists in Mumbai ☹ : Asheen A.    |    I love Mumbai coastline : Hitesh K.    |    I love that Mumbai is being the financial capital of India : Sanjay B.    |    I hate the unnecessary honking on the streets of Mumbai ☹ : Krupa T.    |    I hate the stressfull life of Mumbai ☹ : Srinibas P.    |    I love the cultural diversity of Mumbai : Cherylann M.    |    I love the great restaurants of Mumbai : Radhika P.    |    I hate the inadequate public transport infrastructures of Mumbai ☹ : Saurabh K.    |    I love the sea-link in Mumbai : Abhijit    |    I love the festival in Mumbai : Abhijit    |    I love that Mumbai is a financial innovation capital : Jimmy P.    |    I hate that Mumbai is pedestrian unfriendly ☹ : Milesh S.    |    I love the diversity of Mumbai : Manish M.    |    I love the cosmopolitan culture of Mumbai : Sarit P.    |    I hate the behaviour of government people in Mumbai ☹ : Milan N.    |    I love that it never gets too cold in Mumbai : Kshipra L.    |    I love the vibes of Mumbai : Devanshu    |    I hate the noise in Mumbai ☹ : Pradeep M.    |    I love the social life of Mumbai : Lester M.    |    I love the vibrant life of Mumbai : Afrid W.    |    I hate dirty politics of Mumbai ☹ : Imran S.    |    I hate the lack of recreational areas in Mumbai ☹ : Tehsin L.    |    I love that Mumbai is a city of dreams : Yogita S.    |    I hate the dirt of Mumbai ☹ : Aditi R.    |    I love the liveliness of Mumbai : Sanjay B.    |    I love that there is so many things to for entertainment in Mumbai : Saurabh K.    |    I hate the dirty beaches of Mumbai ☹ : Priyesh Y.    |    I love the traditions of Mumbai : Dhaval C.    |    I love the inclusive nature of Mumbaikars : Sunishi G.    |    I love the sea in Mumbai : Pradeep M.    |    I hate the extremely high cost of living of Mumbai ☹ : Piyush R.    |    I hate the lack of gardens in Mumbai ☹ : Madhu G.    |    I love that Mumbai knowshow to welcome festival : Aarti G.    |    I hate the bad civic amenities of Mumbai ☹ : Afrid W.    |    I love the speed of Mumbai : Pratik C.    |    I love that people from different cultures live and work together in Mumbai : Saurabh K.    |    I hate the dirt of Mumbai ☹ : Madhu G.    |    I love sunset at beach in Mumbai : Jayant V.    |    I love the beach of Mumbai : Irsad S.    |    I hate the noise pollution of Mumbai ☹ : Radhika P.    |    I love that Mumbai is a land of opportunities : Madhu G.    |    I hate the uncleanliness of Mumbai ☹ : Devanshu    |    I love the old British colonial architecture of Mumbai : Krupa T.    |    

Ola Vs. Uber: The Battle Intesifies

  • |
  • BHC Team

Earlier this year, one of the hottest startup competitions within continental Asia ceased fire, with Uber and Didi Chxxnxg (Didi) calling for a truce, before announcing a merger. While this battle represented one of the most intense fights Uber was waging in Asia, the other notable battle is one with Ola in India. With their attention turned away from the Chinese market (thanks to their merger), the question that arises is: What's next for Uber in India? It would seem that a majority of their Asian focus has now turned towards India.

To give a little background on the Uber-Didi deal: Uber secured a 20% stake in the combined entity, now valued at $35 Billion, up from $28 Billion before the deal was struck. The deal came at the end of a massive round of funding headed by both companies. Didi raised close to $7 Billion from multiple investors (including $1 Billion from Apple) and a $2.5 Billion debt package from the China Merchants Bank. Meanwhile, Uber raised a whopping $3.5 Billion from the Saudi Arabian sovereign wealth fund.

The questions arising post the merger are best articulated by Dhananjay Sharma, Associate Consultant, RedSeer Consulting. He said, "China was a bleeding market for both Uber and Didi because of intensive cash burn for customer acquisition. Now, as Uber China merges with Didi, it will likely be a win-win situation for both from the business sustainability perspective. It will certainly be interesting to see how this development impacts Uber's strategy in India going forward, now that Uber is free to focus entirely on winning the Indian market."

As could be expected from the announcement of the deal, the past few months have seen aggressive moves from the part of Ola to consolidate their higher market share position in the Indian subcontinent. Most recently, they have announced tie ups with Mahindra, Practo (for doctor visits), corporate travel, location mapping with Siri, offline booking and most importantly a tie-up with the Karnataka State Tourism Development Corporation to launch exclusive tourism flights from Bengaluru to Mysuru. This collaboration is especially vital because it comes at a time when State Government sentiments regarding taxi aggregators and their surge pricing mechanisms are coming under scrutiny. Collaborating with a government agency further solidifies their position in the marketplace.

Uber, meanwhile is not far behind with the San Francisco based startup announcing 'book later' facilities, corporate plans and offline calling facilities of their own. Reports over the last few month also speak of the massive amount of cash being burned by Uber in India to recruit new cabs, and opening up cash payments and call facilities (at least one of these services just became redundant with the recent demonetization). "What happened in China was unexpected, and investors now just want to wait and see how the market shifts. Uber has deep pockets that it is willing to pump into India. And Ola has to face a wary investment community," says Dhananjay.

Amidst the intense cash dumping by Uber, Ola is now realizing their limited ability to do the same and are pushing for the need of regulation, but in overall macro-economical terms, competition creates value and ensures quality of services to its customers, therefore spelling a good outcome for us all. Grab your seats, because this fight is just getting started!