Ola, Uber to have a competitor in city
Hoysala Caabz plans to charge 18%, hoping to bring more cab drivers under its platform.
ET Bureau|Aug 15, 2019, 10.12 AM ISTBCCL
BENGALURU: The city, one of the largest markets for cab aggregators Ola and Uber, is getting a new home-spun operator, possibly from September 1.
The venture, to be called Hoysala Caabz, is being launched by a local cab operator. The company said it has invested Rs 6 crore and has approached two venture capital firms for funding.
Uma Shankar, who runs a cab service based in Malleswaram, announced on Wednesday that his move is backed by two decades of experience in the business. The 45-year-old is hoping to cash in on the perceived dissatisfaction among drivers who ply for the two cab aggregators in the market, Ola and Uber.
“We have already developed a mobile app. The services will be formally launched on September 1,” Shankar told ET.
Shankar said the new service will benefit both customers and drivers. While there will be no peak hour charges on customers, drivers will be able to take home 82% of the fare, he claimed.
Hoysala Caabz plans to charge 18%, hoping to bring more cab drivers under its platform, said the company’s COO Jai Simha.
While Ola and Uber provide cash incentives to drivers who complete a certain number of trips a day, Hoysala Caabz will offer free pilgrimage tours, study scholarships for drivers’ children and free Englishlearning classes, he said.
Simha said the company hopes to attach 2,500 cabs under its platform and will provide five cab variants.
The new company is likely to start services from September 1.
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