Reliance Jio Cabs: Toughest Upcoming Rival for Uber and Ola

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The craziness of Reliance Jio cellular services is not yet over. This is when Reliance has announced to launch its services in the cab industry as well. Reliance Jio by Mukesh Ambani has made plans to launch an app-based cab service in India this year itself. To start the cab services, Reliance Jio has booked as many as 600 cars to run across the streets of the nation. The cab services by Reliance head Mukesh Ambani will be referred to as “Reliance Jio Cabs”.

The launch of the cab services by Reliance Jio is awaiting the commercial launch of the Reliance Jio telecom services. This is about to happen in April this year. A source at Reliance Industries has claimed that the Reliance Jio cab services might be launched after April. It might also take 6 months depending on the performance of the commercial telecom services by Reliance Jio.

The most striking feature of this launch is that Reliance Jio will compete with the giants like Uber and Ola cabs. To come up with competitive pricing strategy, the Jio has teamed up with a consulting firm E&Y to get the relevant market share.

It was this Tuesday itself that Mukesh Ambani had announced the commercial launch of the telecom services by reliance Jio. The commercial services by Reliance Jio telecom services will commence from 1st April 2017. It was at a press conference in Mumbai that Mukesh Ambani claimed that Jio had crossed 100 million subscribers since its launch in India.

A source revealed that Reliance Industries had ordered several cars from the makers like Hyundai and Mahindra. Order for as many as 600 cars has already been placed. The main idea behind this operation is to function on its own fleet of cars. This would also benefit the independent taxicab drivers who can link their cars to Reliance Jio Cabs network.

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Jio has planned to launch the cab services in Chennai and Bangalore first. It would then proceed to Mumbai and Delhi. The sources said that the cab industry in the south is better to launch their cab services. The company will function on a mixed market strategy. The cab services will be extended to other smaller cities as well like Jaipur and Bhopal.

The Reliance Jio Cab services will have an app like Uber – the development of which is already underway. The company is still discovering the payment system for the independent drivers. There are high chances that Reliance will use its own mobile wallet – Jio Money. The launch of the Reliance Jio Cabs is scheduled at a time when giants like Ola and Uber are facing problems. They face regulatory protests and issues from various drivers across the country. A detailed report by market research and advisory firm RedSeer was presented. It revealed that cab services in India had served almost 500 million rides in the year 2016. This has been up from 130 million rides in the year 2015. The records might cross 7 billion by the year 2020.

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