Product Manager, Digital Marketing

Is the Ola, Lyft, Didi, Grabtaxi alliance really a threat to Uber?

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It’s extremely unlikely that you have a very unique business idea. You may have an idea you consider to be different. But chances of such a case are one in a thousand. What creates the difference between you and another idea which is similar to yours, is the business model. How you plan to execute your idea, will predict the future of your company.

Today morning I came across a post that clearly brought a bad news in the limelight for Uber. Four taxi companies worldwide are coming together as an alliance to change the game (One reporter at Tech Asia called it world war). Let’s understand what exactly these four companies are planning to do.

US based Lyft, on 3rd of December announced about the alliance with Asia based ride-hailing companies, Didi Kuaidi, GrabTaxi, and Ola. Lyft claimed that the alliance will reach nearly 50 percent of the world’s population. As an outcome of this association, global ride-sharing will become more ‘convenient’ for travelers. Also the business entities will leverage the technology and resources owned by other cab operators in other countries. Beside that these startups will be able to expand across other countries where they already have a partner.

Technically, you can avail a Lyft in the US using Ola, thanks to the partnership. But, you will still pay to Lyft. Ola gets nothing out of it. I don’t think I read about profit sharing anywhere in the reports I read. So, how is Ola really going to do more business with this?

Now, if Ola uses the resources available with Lyft in the US to start their operations, will not Lyft suffer loss? It makes no sense. I had an idea of an app where all taxis could be booked from one app. No affiliations. You provide more cabs, better service, decent price, and you win the race.

This alliance in my opinion will only reduce the chances of any cab of expanding outside of their local regions. Unless they get together to become one brand. Share the profit and face the losses. Otherwise, it causes no threat as such to scare Uber. Plus, Uber offers more than just cabs. It will be difficult to take down on Uber unless you have a great business plan. The news guys are crazy.

Now the question, which ride-sharing app do you use more? And why? Let us know in the comments.

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Rajat Sinha

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By Rajat Sinha
Product Manager, Digital Marketing

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