Mumbai based ride-hailing company Meru cabs has filed complaints with Competition Commission of India (CCI) against taxi aggregators Ola and Uber for allegedly abusing market dominance in four cities.


CCI Rejects Allegations against Ola

 The Competition Commission of India (CCI) had prior rejected comparable claims against Ola with respect to the Bengaluru advertise, saying there was no strength as opponent Uber too was a noteworthy market player and denied meddling in taxi administrations showcase which is yet to completely advance.


Views of Nilesh Sangoi

“We have filed four complaints against Ola and Uber in top four cities of operations. They have disrupted the dynamics of the business by pouring foreign funds in the market and selling services below cost and running into losses,” said, Meru Cabs CEO Nilesh Sangoi.

He further said that Ola and Uber are competing with each other, and have already created a monopoly like situation.


Ola Raises $1.1 billion from Tencent

Ola announced that it has raised $1.1 billion in a new round of funding from Tencent Holdings Ltd and Softbank Group. Taxi hailing apps and radio taxi service providers are engaged in stiff competition in different markets across the country.


Huge Subsidy and Impractical Discounts

Huge subsidy to drivers and impractical discounts to customers is being offered by Ola and Uber, and this has distorted the taxi service market, alleges Sangoi.  He further said that “Due to the capital backing, they sell below cost, add more cars on the platform because of which customers get less waiting time and drivers get more trips.”

Meru and other Indian taxi companies suffered a huge setback and saw a blip in their business due to the entry of Ola and Uber. They alleged that rivals entice the drivers with lucrative schemes.

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