War between Ola and Uber Reaches Court

Published Date : Mar 23, 2016

The war between app-based cab service providers Ola and Uber has reached the court. Uber has accused Ola of interfering in its business by creating fake accounts to book rides and then cancelling them. In the Delhi High Court, Uber has sought damages worth Rs 49.61 crore from ANI Technologies, the parent company of Ola. Uber is the most valuable startup firm across the globe. The Indian cab services market has boomed in the past couple of years with the emergence of app-based cab aggregators such as Ola. For Uber, capturing the Indian market is one of the key points in its expansion strategy. 

In the petition in the Delhi High Court, Uber has accused Ola of faking up the rider accounts thereby misleading its drivers through fake calls. The company has claimed losses due to the alleged fake calls and has asked the court to take action against Ola. However, Ola has rubbished the allegations. The court has asked the Bengaluru-based company as well as its subsidiary company Serendipity Cabs to reply before September 14. It is interesting to note that both the companies have been backed by venture capitalists and gaining a bigger market share in India is the key aim for both the startup firms. Uber’s head of business for Asia region had claimed last week that his company would be able to overtake Ola within a month.

Ola Faces Other Litigation Issues

Ola is no stranger to such litigation issues. The app-based transportation service business was accused by autorickshaw aggregator Jugnoo for poaching its employees. Uber also faces a litigation issue of a data breach which is being investigated by the U.S. Department of Justice.  The two rivals in the Indian taxi market have been accusing each other over various issues. Ola has filed a petition against Uber in the court for using diesel vehicles.