HomeBusinessIndian rival slams Uber's business model

Indian rival slams Uber’s business model

Uber’s prime rival in India has some unsolicited recommendation for the U.S. startup: Go native.

“They have a very cookie-cutter approach in terms of what the model is and how [to] force feed it into any geography,” Pranay Jivrajka, a prime govt at Ola Cabs, mentioned on the sidelines of CNN’s Asia Business Forum in Bangalore.

Jivrajka, who till not too long ago served as Ola’s COO, mentioned that Uber ought to ditch its one-size-fits-all method and as a substitute attempt to perceive “local nuances” that will assist it to determine companies that “users and drivers actually want.”

Uber declined to touch upon Jivrajka’s remarks.

Uber and Ola have for years waged a bitter battle for supremacy in India, a market with 1.3 billion potential prospects. The nation has taken on elevated significance for Uber after a collection of latest setbacks elsewhere in Asia.

The San Francisco-based firm suspended its operations in Taiwan final week, six months after it offered its operations in China to native rival Didi Chuxing. Didi, which is taking the struggle to Uber in key international markets, is one in all Ola’s buyers.

In India, Uber has usually discovered itself enjoying catch-up with its Bangalore-based rival. Its most up-to-date native product providing — permitting Indian customers to guide a automotive for a complete day — is already provided by Ola in 85 cities.

Ola additionally lets customers guide one in all India’s ubiquitous three-wheeled auto rickshaws, a service Uber began however then discontinued in 2015.

“What has helped us is having an ear to the ground in terms of understanding what the users want,” mentioned Jivrajka.

Related: Uber’s rivals are teaming up in Asia

Uber CEO Travis Kalanick insists that his firm is just not ready to depart India.

“We are losing, but we see a path towards profitability,” Kalanick mentioned throughout a December go to to Delhi. “We see ourselves being here in the long run.”

Related: Uber suspends its service in Taiwan as fines mount

India is not all the time a simple marketplace for both firm — tens of hundreds of drivers representing each Uber and Ola went on strike in Delhi this week, demanding higher pay and advantages. The Delhi authorities has provided to mediate the dispute.

Jivrajka didn’t touch upon the protests, however mentioned that Ola’s most important focus stays bringing extra drivers onto its platform.

“We need more drivers because the pace at which demand is increasing is way higher than the way supply is getting aggregated,” he mentioned.

Related: Uber CEO drops out of Trump’s business advisory council

Jivrajka additionally had some recommendation for an additional Silicon Valley big hoping to enter India: electrical automaker Tesla.

“There are no rules on the Indian roads,” Jivrajka mentioned. “One thing a lot of people say is that if you can drive in India, you can drive anywhere.”

— Manveena Suri contributed reporting

CNNMoney (Bangalore, India) First revealed February 13, 2017: 8:48 AM ET



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