Reliance to take on Uber, Ola by March?
RIL appears to be entering into private taxi service business to compete with Uber and Ola using CNG-fitted cars to keep its costs down 
 
Updated on 6 January 2016 at 6.05pm to include reply from RIL official
 
Mukesh Ambani-led Reliance Industries Ltd (RIL) is apparently planning to enter into the business of technology-based cab service providers, to compete with Uber and Ola, say cab drivers who have been approached. However, RIL officials said the information is not true.
 
In an email reply, an official from RIL said, "This wrong and untrue information about Reliance entering Private Taxi Service is not new and has been making rounds of social media for over 18 months."
 
According to our information, RIL is planning to start its taxi services by March and has already bought about 2,000 cars (Toyota Etios) in Kolkata alone. All these cars will be fitted with 4G connection (RIL Jio) and use compressed natural gas (CNG) from RIL’s own fuel stations for refilling. On an average, the cost for running a diesel car comes to over Rs6 per km. However, with CNG, the cost comes down to below Rs4 per km, offering Reliance a huge competitive advantage, which would help it wean away the owners from Uber and Ola.
 
The company would use its own fuel stations to supply CNG to its taxi fleet. RIL, over the past few months has been re-opening its fuel stations that were launched with great fanfare in the mid-2000 and then shut down due to adverse fuel pricing regime. In March 2008, RIL shut down all of its 1,432 petrol pumps due to huge losses incurred while trying to match with prices offered by state-owned oil marketing companies. Later, the central government, in October 2014, deregulated diesel pricing, which made RIL to re-open its outlets. 
 
Uber changes business model
If Reliance does enter the business, it will come at an awkward time for Uber and Ola. According to Uber drivers, the company has sharply scaled down its incentives that it was freely offering in the initial months. In fact, Uber has changed its business model, according to informed sources. Earlier it used to offer a fixed amount for the duration the car app was kept on. The fixed amount is almost gone and it is now sharing just the commission with its owners, and that too depending upon when the ride was taken. During the peak hours, the commission for owners may go up to as high as 60%, while during the afternoon, it may be zero. On an average, the commission earned by owners of Uber is about 40% now in some parts. Many owners who do not drive their own cars are finding it unsustainable because they would have to pay the drivers out of this money. Only owner-drivers would continue to do well under the new model.
 
Private taxi service has created huge employment opportunity for unemployed drivers, who on an average were earning Rs25,000 a month while cab owners were earning up to Rs1 lakh a month. However, with Uber changing the business model, the fun is over. 
 
About four months ago there were quite a few rumours in the social media that RIL’s taxi service is about to be launched soon. However, Reliance has failed to meet deadlines for a number of its services in retailing, finance, Jio telecom services. Whether it can launch a cab service remains to be seen. Also, it is unclear whether RIL has any sustainable competitive advantage against Uber and Ola.
Like this story? Get our top stories by email.
COMMENTS

Kumar Anurag

3 years ago

hope reliance guys call me for the same.

Kumar Anurag

3 years ago

I am much interested to listen this news. wants offer my self to this company.

Ashok Kumar

3 years ago

Im ridy to work with reliance cabs....in Delhi ncr

Ashwani Arora

3 years ago

I m ready to work with reliance cabs..in Delhi ncr

mahesh haryan

3 years ago

we ready to welcome in Mumbai.. please come soon in Mumbai.

Surender Tandy

3 years ago

im am intrested in drive with relince cab

Prakash Bps

3 years ago

Reliance client app download 26th onwards below ling :
https://drive.google.com/open?id=0B7YBXCl3SOOLanZCR0RPMEVYUEU

Prakash Bps

3 years ago

Reliance Taxi
Driver app link download 26th anwords ,we will aprol:
https://drive.google.com/open?id=0B7YBXCl3SOOLS0FjU0dRUGI3ZFk

REPLY

[email protected]

In Reply to Prakash Bps 3 years ago

Hi Sir

I'm current working in Ola Cabs i need an opportunity for work with new cab company like Reliance Cab so pls..... any update Regarding job in delhi city pls... send me update my Email ID is [email protected]

Fairy gada

3 years ago

I havent even tried using Ola and Uber. After March, if Reliance is behind the wheels, I'll never be able to sit in these cabs. (coz i will not want to).

Meenal Mamdani

3 years ago

Reliance has two advantages over others. One, it has deep pockets so can sustain losses for a long time. Two, it has its own CNG filling stations so cars do not waste time in lining up to get CNG at public stations.

I am apprehensive about Reliance entering the public transport market. It is not known for business ethics and it will try to eliminate competition unfairly.

VW faces penalties as US sues for environmental violations

Volkswagen could face penalties exceeding $90 billion, or as much as $37,500 per vehicle per violation of the law, Xinhua cited a senior Justice Department official as saying on Monday

 

German car maker Volkswagen may face billions of penalties as the US Justice Department filed a civil lawsuit against it for violating the Clean Air Act by installing illegal devices to impair emission control systems in nearly 600,000 diesel cars.
 
Volkswagen could face penalties exceeding $90 billion, or as much as $37,500 per vehicle per violation of the law, Xinhua cited a senior Justice Department official as saying on Monday.
 
On behalf of the Environmental Protection Agency (EPA), the Department of Justice, filed the civil complaint on Monday in the federal court in Detroit, Michigan, against VW group, along with its Audi and Porsche units.
 
The complaint alleged that nearly 600,000 diesel engine vehicles sold by Volkswagen in the US market had illegal defeat devices installed that impair their emission control systems and cause emissions to exceed EPA's standards, resulting in harmful air pollution.
 
"With today's (Monday) filing, we take an important step to protect public health by seeking to hold Volkswagen accountable for any unlawful air pollution, setting us on a path to resolution," said Assistant Administrator Cynthia Giles for EPA's Office of Enforcement and Compliance Assurance.
 
The illegal devices installed by Volkswagen can detect whether the vehicle is being tested in a lab or running on the road.
 
During test process the device will activate a car's emission control system to pass the US emission test, but during normal daily driving it will not, which caused the car's real emission much higher than the US standard.
 
"The US will pursue all appropriate remedies against Volkswagen to redress the violations of our nation's clean air laws alleged in the complaint," said Assistant Attorney General John C. Cruden for the Justice Department's Environment and Natural Resources Division.
 
A civil complaint does not preclude the government from seeking other legal remedies, said the US Justice Department.
 
Volkswagen promised in a statement that it would continue to work cooperatively with the EPA on developing remedies to bring the TDI vehicles into full compliance with regulations as soon as possible.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
 

User

COMMENTS

Ashok Vyas

2 years ago

I want to join Reliance

Shubham Mandavkar

2 years ago

Im redy to drive

Manash kumar

3 years ago

Hi sir we are waiting your cab service in Bangalore..plz come soon

Ajeet Choudhary

3 years ago

Many drivers waiting relaince

Ajeet Choudhary

3 years ago

Reliance ne jaldi se jaldi aana cahiye.I am waiting relincebecause reliance is a great .I buy my new car

REPLY

Amol Hundare

In Reply to Ajeet Choudhary 2 years ago

Yes ur absolutely right we r waiting for u.l am waiting to business with u please reply me on [email protected]

Ajeet Choudhary

3 years ago

Reliance ne jaldi se jaldi aana cahiye.I am waiting relincebecause reliance is a great .I buy my new car

Ajeet Choudhary

3 years ago

Reliance ne jaldi se jaldi aana cahiye.I am waiting relincebecause reliance is a great .I buy my new car

Ajeet Choudhary

3 years ago

Reliance ne jaldi se jaldi aana cahiye.I am waiting relincebecause reliance is a great .I buy my new car

Differential pricing of data shouldn't be market dominance tool: Nasscom
New Delhi : The National Association of Software and Services Companies (Nasscom) on Monday said differential pricing of data should not become a tool that facilitates market dominance or enables anti-competitive behaviour by either telecom service provider or platform provider.
 
"Differential pricing should not become a tool that facilitates market dominance or enables anti-competitive behaviour by either TSP or platform provider. It should not offer direct or indirect commercial benefit including leveraging the value of customer data generated in the process," Sanjiv Bikhchandani, chairman of the NASSCOM Internet Council, said.
 
"Further it should not offer lower prices for own or partner content or service. Instead of differential pricing for select data services for wide access, transparent business models should be adopted without segmenting the internet or skewing competition," he added.
 
"We reiterate our firm commitment to net neutrality that guarantees users rights to unfettered choice of content and to the creation of a conducive environment for continuous innovation," said NASSCOM president R. Chandrashekhar.
 
"We strongly oppose any model where TSPs or their partners have a say or discretion in choosing content that is made available at favourable rates, speed," Chandrashekhar said.
 
The regulator on December 9 said differential pricing of data services by various operators might potentially go against the principle of non-discriminatory tariff and sought comments or opinions from stakeholders.
 
It said some service providers were offering differential data tariff, either free or discounted, on certain contents of particular websites, applications or platforms.
 
"The objective of offering such schemes is claimed to be the desire of various service/content/platform providers to enable consumers, especially the poor, to access certain content on the internet free of charge," the sector regulator said.
 
It said potentially, both positive and negative effects arise from an economic and regulatory perspective where reduced rates are tied to specific content.
 
"On the one hand, it appears to make overall internet access more affordable by reducing costs of certain types of content. On the other hand, several negative effects might ensue. Differential tariffs result in classification of subscribers based on the content they want to access. This may potentially go against the principle of non-discriminatory tariff," it added.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
Like this story? Get our top stories by email.

User

COMMENTS

Manash kumar

3 years ago

Jaldi open kijiye sir ,,cab service. We are excited to work with reliance..than you
Reliance ki jay

We are listening!

Solve the equation and enter in the Captcha field.
  Loading...
Close

To continue


Please
Sign Up or Sign In
with

Email
Close

To continue


Please
Sign Up or Sign In
with

Email

BUY NOW

online financial advisory
Pathbreakers
Pathbreakers 1 & Pathbreakers 2 contain deep insights, unknown facts and captivating events in the life of 51 top achievers, in their own words.
online financia advisory
The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Online Magazine
Fiercely independent and pro-consumer information on personal finance
financial magazines online
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
financial magazines in india
MAS: Complete Online Financial Advisory
(Includes Moneylife Online Magazine)