Ola, India's largest online taxi business, will more than double its reach by expanding into 200 cities after this week's acquisition of rival TaxiForSure handed it control of more than 80 percent of the country's organised cab market.
The company aims to capitalise on India's low level car ownership, with urbanites deterred by both the expense and the lack of parking space, its 29-year-old Chief Executive Bhavish Aggarwal told Reuters on Tuesday.
"In the United States 70 percent of the population own cars. In India it's about 5 percent," said Aggarwal, who does not own a car. "India will never get to 70 percent car ownership, and that's the opportunity for us."
Backed by Japan's Softbank (9984.T), Ola bought TaxiForSure on Monday for $200 million in one of India's biggest e-commerce deals to date as the company looks to see off its domestic rivals and the emerging challenge of fast-growing United States-based rival Uber.
Ola does not comment on its valuation, but industry sources say it could be worth about $1 billion based on current revenue. The Indian taxi industry is estimated to be worth $8 billion to $10 billion, Ola said.
Seeking to grab a larger part of the market beyond the middle classes, Ola has also tied up with autorickshaws, the cheaper three-wheeled taxis that ply India's roads. The autorickshaws also accept cash, unlike many app-based providers that accept card payment only.
Aggarwal said the group will also invest in technology and customer safety, which has become a big issue in India since an Uber driver was accused of raping a passenger.
Uber has since introduced India-specific safety features, including a panic button.
src:sify.com