Uber is likely to pump in Rs 1k crore every month to drive out Ola, utilise every penny

The competition just got intense after Uber decided to double up its resources in India to outpace Ola. Uber is going to invest $500 million by June in India, which means Rs 1,000 crore a month, on an average.

Uber’s Travis Kalanick said the ride-hailing app would invest in India and the investment could be more than that in US or China.

ET quoted a source in its report who said that Uber had not used up all the cash from the first $1-billion commitment and is now building a team, technology solutions that are India-focussed, and quality.

Meanwhile, both the cab providers are fighting it out in Delhi High Court after Ola alleged that Uber was violating rules and operating cabs that use diesel as fuel, an accusation that Uber has denied.

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According to a Goldman Sachs report, the domestic online car rental market is expected to reach $1.4 billion by 2030.

In a bid to counter Uber, Ola is expected to channelise its investments into taxi business in eight major cities.