Indian Taxi startup Ola recently blamed Uber of using their financial muscles to undercut competition. Ola along with other Indian startup such as Flipkart is vocal against the free flow of foreign money which is slowly killing innovation in India. Ola missed to point out that they are also funded by Softbank which is also foreign entity.
Ola adoption in the beginning picked up very nicely but stuck the roadblocks as they slowed down incentive plans whereas Uber as per their strategy kept the cost to the customer very low. In the last one year, Uber used it's analytics and make the intelligence post their mobile marketing blitz and understood that the best way to retain user base is to forget the embedding of their application in Smartphone.
Uber collaborated with Micromax which is very powerful brand in India as well as strong presence in other countries too. Based on the report, Uber will be integrated with AROUND ecosystem of Micromax product line. It will also enable to reach out 50 to 60 million existing device through Micromax FOTA partner.
The strategic move will help Uber to acquire quality user base as well as usage, retention will be higher. As financial terms are not revealed but it's a win - win collaboration for both the organization. We all know that Micromax VAS department posses strong technology team and generate more revenue for the organization compared to many other standalone VAS companies.
The collaboration will also help Micromax to send clear message to global App or game developer that they have robust platform available which can enable anyone to acquire millions of user base in no time. At the same time, Uber will be able to achieve higher Return of Investment and it will be beginning of profitability for Uber.
I also believe that Ola will not leave any stone unturned to get the similar deal with other Smartphone player as the active user base are their only option to justify their floppy valuation. In a war of Supremacy, Uber strategically struck Ola with clear home.
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