‘Very little activity on the ground,’ says Bhavish Aggarwal on Uber, replying to Dara Khosrowshahi comments

Aggarwal said, “Ola is going nowhere. It is already doubling down and deep into India, and Mr Uber (Khosrowshahi) is behind anyway. If you see his ride-sharing revenues, our revenues were 3x of his in FY23. They are coming from behind and just talking it up, but very little activity on the ground,” as quoted by Business Standard daily.

In a recent interview with the Economic Times Khosrowshahi said that the “Indian customer is a demanding one, both in terms of service and price”, adding that “it has been historically very difficult for companies which operate in higher revenue and cost scenarios to compete in low-cost and lower unit revenue markets. For us, India is not only a market with enormous potential, but it is a state of mind.”

Uber started operations in India in 2013 with a promise of cheap fares for riders and high incentives for drivers. Meanwhile, home-grown rival Ola started in 2010.

Ola’s rival Uber’s Indian entity reported a 7.3 per cent rise in its operating revenue to ₹397 crore during FY22 from ₹370 crore in FY21. The company’s local arm cut down losses by 35.3 per cent to ₹216 crore from ₹334 crore, according to Fintrackr, as reported by Entrackr.

Additionally, Ola Electric is revving up for its highly anticipated Initial Public Offering (IPO). However, the road ahead for investors isn’t entirely clear. While Ola boasts a dominant market position and ambitious growth plans, potential hurdles like financial stability, fierce competition, and evolving government policies cast a shadow on the promising future.

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Published: 27 Feb 2024, 10:22 AM IST