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Kaustubh Katdare
Kaustubh Katdare • Jul 27, 2017

Government cab, rickshaw booking app vs. Ola and Uber

The Indian Government had declared that it's planning to launch a cab, rickshaw booking app on its own to threaten the monopoly enjoyed by Ola and Uber. Union Minister for Road, Transport and Highways, Mr. Gadkari said that the app will allow common people to enroll their vehicle into the service and start accepting ride requests.

With this move, the Government will be directly competing with Ola and Uber - the companies that have widespread network all over India in major cities and towns. The government is in discussion with all the stakeholders and will start the development of the app very soon. The plan is to offer cheaper and efficient services to the common people.

Do you think the Government can pull this off?
Government is a Juggernaut. Has resources that can be effective. It can also be a loose cannon that gets bogged down in beaurocratic quagmire.
Ashoka Hotels, Air India, even the railways, and road transport corporations run(?) by various states are not very encouraging forerunners for this.
Hope it works.
I agree what Ramani Sir has mentioned in the above comment. Government initiatives are often marred with corruption and bureaucratic hurdles.

Here is my explanation why it will not work. The government is not going to provide incentives like Ola and Uber gives to their employees. Ride-sharing companies have managed to entice young people to quit their jobs to take up this trade. When incentives die down things get bad. In Bhubaneswar drivers from both Ola and Uber had went on an indefinite strike to demand incentives and companies had to give in to their demands.

Plus there is the question of unions. Here in Bhubaneswar we have Auto and Cab unions who even to till this date prevent Ola and Uber from plying in some regions. If I ask my Uber driver to pick me up from the railway station he asks me to walk from the station cross the road and walk to a back alley because he is afraid that the local auto association guys will damage his car and it has actually happened on several cases. These local apps will vehemently demand perks like their private counterparts.
Kaustubh Katdare
Kaustubh Katdare • Jul 27, 2017
Right said, @Satya Swaroop Dash . It's not likely to work. First, the Government will have to put in a lot of efforts into establishing proper customer care and monitor the rides. This makes or breaks the companies and with 'Government job' mentality, it's going to inculcate the culture of strict discipline among the employees. Unfortunately in India, such jobs are often considered as 'laid back' ones.

Let's see how it works out. All it means that Ola and Uber won't be able to rise their prices at their will.
Kaustubh Katdare
Kaustubh Katdare • Sep 19, 2017
Betty Maria
I think government should support and funding to Ola because its a pure Indian app.
Not really. Ola Cabs aka ANI Technologies Pvt. Ltd. is a heavily funded companies with investors from multiple countries. It's a company with 'Indian' founders; but the company itself now belongs to the investors.

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