Now, Government Launching its Own Cab-Hailing App Soon To Compete With Uber & Ola!
The Indian Government does not want only 2 cab hailing companies to have a monopoly in the market, so they are now in the process of launching their Own Cab-hailing app to compete with Uber & Ola!
India’s two largest cab-hailing services – Uber and Ola have made it quite clear in the country that they will not tolerate any other rival. Now that the companies are facing huge driver attrition, the Government of India is looking to launch its own service.
According to reports, Nitin Gadkari, Union minister for road, transport, highways and shipping, announced that the Government is working towards an app-based service to book cabs, e-bikes, e-rickshaws and autos.
He says that this initiative will be aimed at uplifting the small and medium businesses, while also providing employment opportunity to individuals. Anyone with the motive of running a cab business will be able to join this venture.
“Why should two companies like Uber and Ola have a monopoly in the market? We want people even those running cab business at a small scale to have an equal opportunity to provide service to people. The mobile app will provide a platform to such people and better, efficient and cheaper cab services to people,” said Nitin Gadkari.
The minister also said they are in serious discussions about developing this application since it is expected to provide employment to a lot of people, and will directly take on Uber and Ola that have captured almost the entire segment.
Will the Government’s app do well?
The Government seems to have been at loggerheads with Ola and Uber because of driver complaints, mishaps and sometimes just because Ola and Uber are trying to do something different, like pooling or bike taxis.
Now, the main focus of Government’s booking app will be to pick up a passenger from point A and drop him/her to point B. This is it. There will most probably be no pooling service and the fare will be fixed by the Government, which will definitely be higher than what you usually see for Uber and Ola.
Moreover, Uber and Ola have an extensive tried and tested network and app that helps it to streamline its operations. Government’s app will be 4-5 years late in the market, and will see maturity in due time, but till then you will face a lot of challenges which might take you back to the other two majors.
Let’s see how the app finally pans out, but expect to pay higher fares if you’re a rider. The Government should be able to incorporate UPI in its app before launch and probably make note of shortcomings of its competitors, but Ola and Uber should be wary of this development.