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TEXXR

Chronicles

The story behind the story

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Indian ride-hailing service Ola, which counts Didi and SoftBank as investors, is launching in Australia; Europe-based Taxify also recently launched in Australia

it said today it is recruiting drivers in Sydney, Melbourne and Perth ahead of upcoming launches http://techcrunch.com/...

Recode Johana Bhuiyan

Context & Ripple Effects

Ola's move into Australia extends a playbook funded at home: after a stake purchase by Didi Kuaidi in 2015 and a $2B round from SoftBank and Tencent in late 2017, the Indian ride-hailing leader is recruiting drivers in Sydney, Melbourne and Perth ahead of launch. It is not entering an open field — Taxify has just launched there, and Didi itself runs DiDi Express in Melbourne as its third international market.

First-order effects

  • Driver recruitment across three cities puts Ola straight into a supply-side contest with Uber, Taxify and Didi's own Melbourne operation for the same pool of drivers.

Second-order effects

  • Taxify, which just entered Australia, now faces a second well-capitalized challenger alongside Uber, while Didi ends up competing against a company it partly owns in a market where it already operates.

Third-order effects

  • If the pattern holds — Ola followed this Australia entry with a UK rollout beginning in South Wales — ride-hailing consolidates around a handful of cross-invested global platforms, and mid-size markets become multi-front subsidy battlegrounds rather than two-player duopolies.

The trend: SoftBank-interlocked ride-hailing platforms are exporting their home-market scale into overlapping international markets, turning each new city into a crowded, capital-intensive contest.

Discussion

  • @jonrussell Jon Russell on x
    Ola's first expansion outside of India will be Australia — it said today it is recruiting drivers in Sydney, Melbourne and Perth ahead of upcoming launches http://techcrunch.com/...