news Monday, May 11, 2015 - 05:30
Ola Cabs has been accused of predatory pricing and abuse of dominance by the Competition Council of India (CCI). The allegation revolves around intent which is one of the toughest conditions to prove in a legal battle. Cab services like Fast Track, Meru Cabs and NTL Taxi have accused Ola of having “unrealistically low and unsustainable tariffs”. For instance, in Chennai, Ola charges Rs 12 per km, while Fast Track and NTL charge Rs 16. Taxi For Sure and Uber charge below Rs 10 per km. According to a report done by The New Indian Express, Fast Track has alleged that Ola faces a loss of Rs 230 as it spends Rs 574 while earning an average of Rs 344 per trip in Bengaluru. The director of NTL, G Saravanan, told the newspaper that the probe is welcome as Ola’s charges are unsustainable and their aim is to push out all the competitors  Proving the intent of Ola Cabs to dominate and oust its competition from the market is a rather difficult task unless the pricing is termed predatory. Amitabh Kumar, the former director if CCI said that Ola’s argument could be that they see potential in the future for profit making. “Evidence and economic analysis is the key in such cases,” he told the newspaper. Read more at: