Get All Access for $5/mo

Is Uber Stepping Up Its Game to Fight Ola in India? Uber has restructured its corporate holdings to bring its cab and food delivery business under Uber India Systems

By Shreya Ganguly

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.


A Statista report revealed that the ride-hailing segment recorded a revenue of $30,360 million in 2019 which is expected to grow at an annual rate of 15.5 per cent leading to a market volume of $54,097 million by 2023. Currently, Ola and Uber are locking horns to stand on the top position in India.

At a time when media reports state that Ola's parent firm ANI Technologies is looking to list itself within two years after becoming profitable, The Economic Times has reported that global ride-hailing giant Uber has restructured its corporate holdings to bring its India cab and food delivery business under Uber India Systems.

According to the report, prior to this, Uber's ride-hailing and food delivery business was a part of Uber BV, a private limited liability company which is registered in the Netherlands. With this, Uber's agreements with restaurants and payouts which were sent via the Netherlands-based company will be shifted to India. The rides business will be invoiced out of India as well in the future. Citing anonymous sources, the report added that this move is aimed at making Uber's operations "legally sound without any ambiguity". The restructure business operation were made live on October 1.

This development comes at a time when media reports revealed that Ola is looking to list itself on BSE or NSE. According to a report by LiveMint, with the IPO, Ola's investors including SoftBank may exit or partially sell their stakes.

Ola or Uber: Who Will Win The Top Spot

Ola and Uber have been major rivals with Bengaluru-based Ola looking to competing with US-based Uber on the international level. Uber CEO Dara Khosrowshahi had said that India is one of its biggest markets for ride-sharing services.

Meanwhile, Ola is looking to expand its services internationally. According to media reports, Ola had already earmarked $60 Mn for launching services across the globe. It has already forayed into Australia, New Zealand and UK markets where Uber is a market dominator.

Apart from this, both the companies are looking to diversify for portfolios beyond cab business. While Ola launched its credit card in partnership with SBI in May, the US-headquartered rival is looking Uber forayed into on-demand staffing space and launched a new app called Uber Works to match shift workers with the available shifts.

Uber's Disappointing IPO

At a time when Ola is looking to list itself, Uber had a disappointing run for the IPO. In May, Uber had opened its first day of trading with an initial public offering price of $45 but it fell by 7.7 per cent to $41.52 at the end of the day.

The company had raised $8.6 billion through the IPO. According to reports by Business Insider, 180 million shares were sold during the offering which should have raised $12.8 billion for the company.

Shreya Ganguly

Former Features Writer

Business News

Y Combinator Helped Launch Reddit, Airbnb and Dropbox. Here's What I Learned From Its Free Startup School.

The famed startup accelerator offers a free course on building a business — and answers five pressing questions for founders.

Business News

New Southwest Airlines Major Investor Wants to Force Out CEO, Slams Company's 'Stubborn Unwillingness to Evolve'

Elliot Investment Management announced a $1.9 billion stake in the Dallas-based Southwest Airlines on Monday and is urging shareholders to vote for new leadership.

Science & Technology

Why We Shouldn't Fear AI in Education (and How to Use It Effectively)

Facing resistance to new technologies in the educational process is nothing new, and AI is no exception. Yet, this powerful tool is set to overcome these challenges and revolutionize education, preparing students and professionals for a future of unparalleled efficiency and personalized learning.

Business News

A Former Corporate Lawyer Now Makes Six Figures on YouTube — Here's How She Does It

Here are the secrets to starting and growing a successful YouTube channel, according to a YouTuber with millions of subscribers.

Business News

Apple's AI Has a Catch — And It Could Help Boost Sales

Not every iPhone owner will get to use the new Apple Intelligence.