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Indian Government Trying To Enter Cab Aggregator Space; More Trouble For Uber And Ola

| Published on July 26, 2017

The online cab market is now ruled by Ola and Uber. According to reports, competition is arriving soon for these giants and it’s none other than the Indian Government. Rumors are around the corner that Government soon will launch an app for online cab service.


The app will offer users a variety of options to choose from, including two-wheeler taxis and electric cars.

The Apps In Problem

In July 2017, it is reported that Delhi Government may place a ban on share services like Ola Share and UberPOOL. If this happens then online cab market will come under Motor Vehicles Act, 1988. The government is also looking forward to optimizing the taxi fees around all cities.

These present conditions have led to carb down the monthly fees of these online cab drivers by 30% in 2017. In February the drivers went on strike in Delhi and Karnataka. Karnataka Government asked Ola and Uber to put a halt to their services followed by Delhi Government to take a decision to place a ban. Where Uber and Ola bike services are quite popular across the world, in March 2016, their bike sharing services, Ola Bike and Uber Motor were termed as ‘illegal’ by the Karnataka State Transport Department.

Government Plan

With the consent of Narendra Modi, the Indian government has come up in last few years a lot of car share and car pool to lower down traffic problems. In July 2017, it was reported that India’s think-tank NITI Aayog has partnered with cab sharing companies including US-based Uber, “to assess the economic and environmental impact of using private cars as taxis” in a three-month study.

Ex-Uber and Ola drivers too started an online taxi service in Delhi known as SEWA. The cabs are cheaper than Uber and Ola and also have good service reputation in the market. With the onset of such new cab aggregators online, Ola and Uber will face some real competition. Recent times they also are facing a lot of customer wraths related to service and cost rate if Government can build an online space that deals with these in a better way they will surely grab the audience in a go.

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