Story by: Ashish Bhatia
Reliance Group is looking at entering the cab aggregator business some time soon, or at the start of the FY2017-18 financial year, claim industry sources. Buoyed by the proliferation of the cab aggregator business in India perhaps, and with the participation of global and homegrown players like Uber and Ola, the business model Reliance is said to be looking at could be modelled on the lines of the Reliance Group’s telecom venture, Reliance Jio. In the absence of any official announcement by the group, it can be assumed that the move would set in motion a disruptive change. With the new regulations announced by the government and the view taken by many state governments towards cab aggregators – Ola and Uber especially, it will be interesting to see how the Reliance Group structures its cab aggregator strategy. Stress, claim industry sources, would be to find a strong foothold and grow.
Coming at a time when the two leading players, Ola and Uber, are finding new ways to make money, the Reliance business model, industry sources claim, will limit itself to cabs, atleast initially. With Ola and Uber said to be bleeding, the entry of Reliance Industries (RIL) could prove to be intresting. Especially when the Group is said to purchase its own cabs. Applications for drivers are claimed to be out. Drivers, claim Sources, will be paid more than what the current players are paying. An asset intensive business model, cabs, claim industry sources, are being bought from Tata Motors and Mahindra and Mahindra (M&M). Assuming the service will roll of Mumbai, RIL, says an industry expert, will set change in motion.