Ola Beats Uber In the App Race: Is It Just The $500M Fresh Funding Or There Is Something More To it?

With the announcement of Ola raising fresh funds of $500M, Uber lags behind in India as well as in China where the Didi Kuaidi cab hailing app rules. After the online retailers like Snapdeal and Flipkart, Ola stands third in the venture-backed startups.

According to the Forbes, Ola said it would use the funds to "further accelerate growth in the Indian market with a focus on building mobility for a billion people".

In the year 2011, the Ola founders Ankit Bhati and Bhavish Aggarwal started their journey and has come a long way with $1.3billion funding in last one year alone. Now, a fresh set of funding from investors like Soft Bank, Falcon Edge Capital, DST Global, Tiger Global and also the Didi Kuaidi makes the foothold stronger for the Ola founders.

As the CNBC reports, Ola,The Indian start-up has 350,000 vehicles registered on its platform and is present in 102 cities in India" in comparison to its rival Uber, which is functioning in 22 Indian cities with 200000 trips within a day.

Apart from raising funds for the easy mobility of the Indian mass, Ola is also tying up with the large eCommerce giants. This will give millions of users the freedom to access the ola money e-wallet for online buying and selling on other platforms.

Recently, Ola turned as the rescuer by deploying boats in the waterlogged areas affected by the Chennai flood. The company has provided skilled rowers to ferry at least five to nine people in a trip with enough umbrellas, drinking water, and food free of cost.

Against the backdrop of problems cropping up at several e-commerce companies resulting in layoffs and management changes, the fund-raising at Ola is an indication investors are willing to back ventures they believe are promising, reports Financial Express.

The cabbie apps are battling to retain their position with a tough fight between numerous such applications. Ola still manages to hold the position with the rapid growth of the domestic Smartphone market, various mergers to venture out with fresh innovative ideas, and acquiring funds for the same.

In a press release from Ola, Bhavish Aggarwal stated that the fresh funds will be used in the expansion of their ideas and services and the company will keep uniting with the giants who can help Ola to reach the destination rapidly.

Uber gives a tough fight to Ola with the announcement of an investment of $1 billion and modern operational hubs across India within a nine months period. Yet, Ola has the in-depth knowledge and experience that helps the founders to introduce services customized entirely for the Indian market.