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Cab-Hailing Services to Australia,Launches Operations in Sydney

Ola takes Uber rivalry to Australia, launches operations in Sydney

To launch its cab-hailing services to Australia, Ola, is now officially operating is Sydney. This comes in after Ola kickstarted its services in Perth. The company has further made significant hiring to build partnerships with local cab service rides and driver partners.

Uber was one of the first ones to launch cab-hailing services in Australia and New Zealand. With Europe’s Taxify entering Australia and Ola kickstarting operations, both backed by China’s Didi Chuxing (the company that acquired Uber in China), in Australia, Uber seems to be against the cab-hailing Asian Union.

Commenting on the recent launch in Sydney, Chandra Nath, Vice President, Head of International, Ola, said, “We are excited to officially start operating on the east coast with the launch in Sydney. We’ve been very pleased with how the service has been received by customers, driver-partners and the community in Perth, and can’t wait to continue building on these experiences and learnings for our second city launch.”

This comes in as Ola’s first foray in the international market. As it raised money from Softbank, there were rumours of Uber exiting non-profitable market (Asian) ahead of its IPO. That has made South Asian cab-hailing services like Ola and Grab to focus on expanding their operations globally.

Since its launch in Perth, Ola claims to have registered over 7,000 driver partners. The company further plans to roll out more plans to board driver partners. There were reports in the market saying that the company was in talks with Singapore’s wealth fund Temasek to raise another $1 billion where it was valued over $4 billion.

Softbank being one of the largest backers of the company looks to be putting its bet on the anti-Uber alliance and Uber both. It’ll be interesting to see how the cab-hailing service industry turns out to be.

In a recent report published by Goldman, the global taxi market is pegged at $108 billion making it three times the size of the ride-hailing industry. The report further added, that the current average of 10 million trips a day will touch the 97 million rides a day mark by 2030. This would translate to $65 billion in revenue for the ride-hailing companies by 2030. This is based on the assumption that these companies would take at least 23 percent commission from the gross market sales.

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