Ola is raising its next round of funding $600mn+ and the company now wants its ‘foreign funded’ competitors, a.k.a Uber to stop predatory pricing.
The company wants government to stop ‘capital dumping’ by Uber.
“There is an urgent need for adequate regulation to curb predatory pricing and capital dumping in the ecosystem in the interest of co-existence of all players in the ecosystem.”
“foreign capital should not be used only to offer disruptive pricing” – Ola’s Chief Operating Officer Pranay Jivrajka (source)
Well, Ola itself has raised funding from DST, Didi, Softbank (i.e. the foreign investors) and ‘predatory pricing’ has been the mantra for all players, asking government to step in and play the ‘India’ card is an old tactics for Ola.
Also : Uber sued Ola For $7.5mn (6 months back).
Of course, Uber is 10-20% cheaper than Ola – but more than the price, Uber does offer better quality of service.
What’s your take?
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