Apps Ape Com­pe­ti­tion

The Economic Times - - Econ­omy & Com­pa­nies -

They in­cluded ICICI Bank, Mahin­dra Fi­nance and Tata Mo­tors Fi­nance

Ac­cord­ing to re­search firm RedSeer Con­sult­ing, both cab hail­ing ap­pli­ca­tions have re­duced driver in­cen­tives by 30% to 40% in the quar­ter end­ing March 2017, the cut was ap­par­ently done to fo­cus on unit eco­nom­ics. “To­gether we see that both Ola and Uber are do­ing around 70 mil­lion trips a month.

“Even though Uber is preva­lent in 29 cities and Ola in 110 cities, a ma­jor­ity of their trips come from the top 30 cities and they con­trib­ute 90% to 95% of the both the com­pa­nies rev­enues. Delhi alone is con­tribut­ing 10-12% of the trips, fol­lowed by Mum­bai, Ben­galuru, Chen­nai, Hy­der­abad and other cities.

A ver­ti­cal that is work­ing for both the com­pa­nies is the car pool­ing fea­tures UberPool and Ola Share, that in­di­vid­u­ally con­trib­ute to 25% of both the play­ers rides,” ,” said Jas­pal Singh, part­ner at Valoriser Con­sul­tants. Ear­lier this year, Uber chief ex­ec­u­tive Travis Kalan­ick was asked to step down, days after Emil Michael, who was se- nior vice pres­i­dent of busi­ness, and Eric Alexan­der, who was head­ing the Asi­aPa­cific busi­ness, left as the San Fran­cisco-based com­pany bat­tled a wave of scan­dals.

From reg­u­la­tory hur­dles to al­le­ga­tions of wide­spread mis­man­age­ment and a toxic work­place cul­ture, es­pe­cially since for­mer em­ployee Su­san Fowler wrote about her work ex­pe­ri­ence at Uber in a blog post about the com­pany.

In terms of scan­dals in In­dia, se­nior ex­ec­u­tive Alexan­der had been fired for ob­tain­ing med­i­cal re­ports of a woman who had been raped by a driver on the Uber net­work in De­cem­ber 2014 in New Delhi.

In terms of us­age of the mo­bile ap­pli­ca­tions of Ola and Uber, the gap is nar­row­ing. As per an anal­y­sis of ac­tive app users by San Fran­cisco-based mo­bile data an­a­lyt­ics firm App An­nie, Ola re­mains the mar­ket leader with a 5253% share over Uber’s 4648% share in In­dia. Ola had 5.9 mil­lion monthly ac­tive users on its app and Uber, 5.5 mil­lion in May, App An­nie’s data show. That month, 57% of Uber users and 43% of Ola users opted for shared rides.

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