Ola, which is based in Bangalore, has been granted a license to operate in the city, London's transportation regulator said Thursday. It's now recruiting drivers ahead of a launch in late summer or early fall. The move into the British capital is a huge opportunity for Ola. London is one of five global cities that account for nearly a quarter of Uber bookings, along with Los Angeles, New York City, San Francisco and São Paulo.Competition in the city is heating up.
The company, which already has 10,000 drivers in UK cities like Liverpool, Reading and Bristol, is willing to compete on cost.While its fares will be comparable to Uber's in the long run, Ola plans to offer discounts when it first enters the London market. It will also give drivers a larger cut of their rides, which could help with recruitment.The arrival of companies like Ola could put pressure on Uber in the near term, analysts at Morgan Stanley said in a note last month.