Ola to launch in Hamilton, Tauranga and Dunedin and more by Christmas

Tuesday, 3 December 2019

Ride hailing driver Lynette Dixon has been driving for Ola and Uber for over a year.

Taxi app Ola says it will launch in another 11 cities before the end of the month including Hamilton, Tauranga and Dunedin.

The Indian-owned competitor of American ride hailing giant Uber, launched in Auckland, Wellington and Christchurch last year, offering its riders and drivers numerous promotions and discounts.

Ola country manger Brian Dewil said Hamilton, Dunedin, Palmerston North, Tauranga, Queenstown, Nelson, New Plymouth, Napier, Rotorua, Taupo and Hastings, would be added before Christmas.

Dewil said that in its first year, the Ola app was downloaded 350,000 times driven by aggressive marketing techniques.

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Ola country manager Brian Dewil says Ola will ease up on its aggressive discounts next year.

In that time Ola had also signed up 9000 drivers.

While Dewil would not reveal how many times an average customer used Ola in a week, he said the company had a 'very good' repeat customer base.

But with the company going into its second year, Dewil said Ola would offer fewer discounts.

Ola claimed it its riders saved $7 million through its discounts.

The focus would be on the customer experience, he said.

'That also means working on our response times, how we look after our customers and incentivise our drivers which is primary for any business wanting to be sustainable.'

Lynette Dixon has been driving for Ola and Uber for over a year, making about $1200 a week working about 30 hours.

Dixon said over recent months she had been getting more jobs through Ola because of its 'very heavy marketing' and she preferred it because the commission it charged was fixed at 18 per cent of the fare.

Uber charged between 25 per cent and 28 per cent, she said.

Ola claimed its riders saved $7 million through its discounts in the last year, while drivers collectivley earned $11m due to its lower commission rates compared to Uber.

Like Uber, Ola is looking to incentivise its drivers to stay on its app. If drivers log a certain number of bookings in a day they receive a bonus payment.

Uber recently started offering drivers rewards in four categories, bronze, silver, gold and platinum depending on how many points they earned. The rewards include fuel discounts, cheaper phone plans and discounts at an automotive supplies store.

- This story has been corrected to reflect that Ola began operating in the main centres last year and its app has been downloaded 350,000 times.