Ola on aggressive services expansion to take on Uber

Ride hailing app Ola is taking on its global rival with an aggressive expansion strategy. Ola, which until now has been running only its point-to-point model is now expanding its scope with two new categories – outstation, for intercity travel and rentals, where an Ola can be rented for an hourly package, according to Economic Times . A customer now can book an Ola cab two hours in advance for intercity travel for outstation services. The fare for both the services are not known as yet. However, Ola will be targeting select metros, according to a post on Google Playstore, reported Financial Express . Besides cab services, Ola has a bus service - Ola Shuttle, an auto service, car pooling, corporate offering and five categories of on-demand cab service, says Economic Times.  In April, the company had expanded its affordable service Micro to six more cities, including Ahmedabad, Jaipur and Bhubaneswar. The move was aimed overtaking rival Uber in terms of number of rides. Ola Micro fleet has cars like Datsun Go, Maruti Alto and Hyundai Eon, among other compact cars. “By bringing Micro to fast growing tier-II markets, Ola is making an AC cab ride affordable for millions of Indians who will potentially take their first cab ride with this category. In cities like Jaipur, Ahmedabad, Chandigarh, Bhubaneswar, Coimbatore and Guwahati, which are popular tourist and economic centres, affordable yet reliable mobility options are limited,” Raghuvesh Sarup, Chief Marketing Officer and Head of Categories, Ola, was quoted as saying in a PTI report. Ola, which has around 3.5 lakh taxis in its technology platform has a presence in 102 cities. It has been trying to match its steps with Uber. According to media reports earlier this month, Ola is gearing up to raise more funds to take on Uber. According to a report in the Business Standard, the company is planning to raise $1 billion or Rs 6,700 crore. Citing sources the report said the company will close the fund raising by the end of July. Ola’s fund raising plans come close on the heels of Uber raising a $3.5 billion from Saudi Arabia’s sovereign wealth fund.