Uber’s Primary Competitor in India Offers Advice: Think Local
Pranay Jivrajka, a high-ranking executive at Ola Cabs, recommended that Uber abandon its one-size-fits-all approach and instead focus on understanding and catering to the “local nuances” in order to deliver services that both users and drivers truly desire. Jivrajka made these comments during the CNN Asia Business Forum in Bangalore.
When asked for a response to Jivrajka’s remarks, Uber declined to comment.
Uber and Ola have been locked in a fierce competition for dominance in the Indian market, which boasts a potential customer base of 1.3 billion people. This market has gained particular importance for Uber following recent setbacks in other Asian countries.
In Taiwan, Uber recently suspended its operations, six months after selling its China-based business to local competitor Didi Chuxing. Didi, which is challenging Uber in key foreign markets, happens to be one of Ola’s investors.
In the Indian market, Uber has often found itself playing catch-up with its Bangalore-based rival. For instance, Ola already offers a product allowing users to book a car for an entire day in 85 cities, a service that Uber only recently introduced locally.
Furthermore, Ola enables users to book India’s popular three-wheeled auto rickshaws, a service that Uber initially offered but discontinued in 2015.
“What has contributed to our success is our keen awareness of user needs,” Jivrajka explained.
Note: Uber CEO Travis Kalanick has expressed his commitment to the Indian market, stating that they envision a path to profitability and a long-term presence in the country.
In India, both Uber and Ola face challenges. Tens of thousands of drivers from both platforms recently went on strike in Delhi, demanding better compensation and benefits. The local government has stepped in to mediate the dispute.
Regarding Ola’s strategy moving forward, Jivrajka emphasized the company’s focus on recruiting more drivers, as the pace of demand is surpassing the rate at which they can aggregate supply.
Jivrajka also had some advice for Tesla, the electric automaker planning to enter the Indian market: “One thing a lot of people say is that if you can drive in India, you can drive anywhere,” he commented.
— Manveena Suri contributed reporting
CNNMoney (Bangalore, India)First published February 13, 2017: 8:48 AM ET
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