Indian ride-hailing firm Ola said it would offer its London drivers incentives to switch to electric vehicles, in a move to convince city regulators it’s fit to operate in the city.
From Thursday, Ola will waive its commission fee until Aug. 13 for drivers that own an electric car. Ola users in London will be able to request a ride from a new “Ola EV” category, which allows only drivers with electric vehicles to accept trips.
OIa currently charges London drivers a standard rate of 15%, although Uber takes a 25% cut.
The SoftBank-backed start-up introduced its app in the U.K. capital in February last year, expecting to beat Uber as market leader. However, it was later stripped of its license just eight months later, with local transport authorities concerned Ola was not “fit and proper” to hold one.
Ola appealed the decision by Transport for London not to renew its license. That means it can still operate in the city. A similar thing has happened to Uber, twice. However, the San Francisco-based firm managed to regain its license following a court battle with TfL.
In Ola’s case, TfL found the company had committed “historic breaches” that compromised the safety of the public and that unlicensed drivers were able to do more than 1,000 passenger trips using Ola, and that the company failed to inform regulators immediately when these breaches were first identified.
“We continue to work with TfL to address the issues raised in an open and transparent manner,” Ola said in a statement. “At Ola, our core principle is to work closely, collaboratively and transparently with regulators such as TfL.”
“As Ola stated at the time of TfL’s decision, we are appealing the decision and in doing so, our riders and drivers can rest assured that we continue to operate as normal, providing safe and reliable mobility for London.”
But, Ola claims to have over 25,000 drivers in London, 700 of which are eligible for Ola EV. After the launch of Ola EV, the company says it plans to extend its offers through partnerships with other businesses to encourage more drivers to make the switch from polluting vehicles.
Marc Rozendal, managing director of Ola U.K., said the move was a “global first” for the company and that it would hope to expand the initiative across Britain and other markets.
“Since launching in the UK, Ola has consistently looked to innovate and help solve the toughest mobility challenges,” Marc Rozendal, managing director of Ola U.K., said in a statement.”
“The launch of Ola EV is another great example, offering riders and drivers the opportunity to play their part in the journey to emission free rides.”
In March, Uber reclassified all 70,000 of its U.K. drivers as workers following the country’s Supreme Court ruled that a group of the company’s drivers should be treated as workers, not independent contractors. Uber had to give its U.K. drivers a minimum wage, holiday pay and pension plans.
Other ride-hailing apps, including Ola, Bolt and Free Now, state they are reviewing the Supreme Court ruling to see if it affects their business.
Ola has been pushing deeper into electric vehicles lately. The company’s Ola Electric unit, which manufactures electric scooters and charging facilities, has raised over $300 million from investors to date. The firm recently hired Jaguar Land Rover veteran Wayne Burgess as its head of vehicle design.
Electric mobility is a trend that should be emulated throughout the commonwealth as it would reduce air pollution, particularly, in megacities like London and New Delhi.
