Ride-hailing competition good for driver and passenger
After a successful launch in Sydney in January 2018, the Indian UBER-challenger OLA is now offering services across 6 Australian locations (Gold Cost, Brisbane, Sydney, Canberra, Melbourne and Perth). OLA joins the success of UBER and Taxify.
Both OLA and Taxify have received support funding from Chinese giant Didi, whilst UBER is staying close to Japanese SoftBank. OLA is, in addition, eying the Singapore based Temasek fund for extra funding, reportedly as much as $1 billion.
Will it make a difference for the user?
Jackson Ryan, journalist at the Australian website lifehacker has done the test and compared the 3 suppliers for an identical trip in Sydney. Pricing proposals turn out to be very similar between UBER and Taxify, and slightly more expensive at OLA.
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| UBER | Taxify | OLA |
| Base Fare | $ 2.50 | $ 2.50 | $ 2.50 |
| Booking Fee | $ 0.55 | $ 1.65 | $ 0.55 |
| Per minute | $ 0.40 | $ 0.40 | $ 0.40 |
| Per kilometre | $ 1.45 | $ 1.45 | $ 1.45 |
| Minimum Fare | $ 9.00 | $ - | $ 9.00 |
| Cancellation Fee | $ 10.00 | $ - | $ 10.00 |
| Cancellation waiver | Free if cancelled within 5 minutes |
| Free if cancelled within 5 minutes |
| Fare Estimate: | $14-$18 | $14-$18 | $ 16.00 |
| Remarks |
| Discounts available |
|
In terms of experience, he made the following remarks:
- UBER: good experience, but the variable surge pricing (the more demand, the higher the pricing) can make UBER more pricy than a regular cab
- TAXIFY: similar experience to UBER, but with the advantage that the variable pricing is capped at 1.5 times the base fare. Sometimes, it’s more difficult to find a Taxify driver, but the app is gaining popularity amongst popular drivers. Also, Taxify promotes its services with regular discounts
- OLA: penalised by the lack of drivers. When trips are too far away, drivers will cancel easily, which leaves the users waiting for their rides and switch to UBER or Taxify.
Does it make any difference for the driver?
Clearly. OLA has launched its start-up program during which it will only take 7.5% commission from the driver. In a later stage, OLA will move this to 15%, which is the same commission as Taxify is charging today.
Neither of the 3 platforms are disclosing the exact number of drivers and rides, but it’s a well-known fact that professional drivers, who operate on the 3 platforms, are shifting from UBER to OLA. The difference is substantial: working for UBER allows them to make AUD 15 / 16 whilst driving for OLA generates AUD 22 / 23. Nevertheless, they admit still needing UBER as the volumes on Taxify and OLA are not big enough yet.
Good for the Fleet Manager?
OLA hasn’t posted any initiative for corporate clients on their website, whilst Taxify and UBER have business solutions. Typically ideal for last-mile solutions, corporate ride hailing can add to the Fleet Manager’s comfort as invoices are consolidated and expense notes reduced.
More importantly, it’s a step forward in the process from company car to mobility solutions.
