Govt Preps Ola-Uber Rival, Abound Nets $14 Mn & More

Govt Preps Ola-Uber Rival

In a move that could rattle the likes of Ola and Uber, the Indian government is prepping to roll out its ride-hailing service — Sahkar Taxi. It will register taxis, rickshaws, and two-wheelers under a cooperative structure, allowing drivers to retain 100% of their earnings.

The Duopoly Problem: The ride-hailing giants have long faced backlash over fluctuating and high commissions, erratic earnings and lack of transparency for drivers. While Ola and Uber typically charge 20% commission per ride, the rising tide of competition from Namma Yatri has forced the duopoly to embrace the zero commission or subscription models. Yet challenges persist. 

Will Customers Make The Switch? In the last few years, startups such as BluSmart, InDrive, Rapido, Namma Yatri, Red Taxi, and Snap E Cabs have tried to chip away at the duopoly of Ola and Uber. While each has bet on a different edge — EVs, flexible pricing or zero commission models — none has been able to dethrone the incumbents at scale. For Sahkar Taxi, the zero commission may win drivers but customer loyalty will be the ultimate battle. 

Success will also depend on building a reliable tech infrastructure, onboarding fleets at scale and delivering customer experience on par with the convenience offered by established players.

Amid the current scheme of things, the ride-hailing platform marks the Centre’s latest attempt to enter the digital sector. In the past, the government has tried to disrupt fintech with UPI and ecommerce with ONDC.

Nevertheless, the Centre seems to have the right intentions with Sahkar Taxi, but will that be enough to make the state-backed initiative a watershed moment for India’s ride-hailing industry? Continue reading… 

From The Editor’s Desk

Abound Nets $14 Mn: The cross-border financial solutions startup has raised the capital in a seed round led by NEAR Foundation. Founded in 2020, the platform helps the Indian community in the US make seamless cross-border transactions. 

Cult.fit Ropes In Bankers For IPO: The fitness unicorn has shortlisted Axis Capital, Jefferies, Goldman Sachs, Morgan Stanley and JM Financial for its INR 2,500 Cr initial public offering. Cult.fit is eyeing a valuation of INR 17,132 Cr for the public listing.

Aakash’s Fundraise In Limbo: The NCLT has ordered a status quo on the shareholding of the edtech until the next hearing on April 30. This comes as the coaching chain is eying a fundraise of INR 500 Cr.

JioHotstar Clocks 100 Mn Subscribers: The streaming giant crossed the milestone just a month after the erstwhile Disney+ Hotstar and JioCinema merged to launch JioHotstar. The company attributed the surge in numbers to pricing and partnerships with telcos. 

JFS Pumps INR 1K Cr In NBFC Arm: The Reliance-backed financial services major has invested the capital to “finance” the business operations of its subsidiary Jio Finance Limited. The NBFC provides home loans and loans against mutual funds to its customers.

Fraud At MobiKwik: The listed fintech major has claimed that a former employee defrauded the company of INR 1.26 Cr by altering merchant details. The company has filed a police case and the accused has been apprehended.

Tesla Vs Tesla: As mediation efforts failed to yield results, the Delhi HC will now hear the EV giant‘s trademark infringement case on April 15. The Elon Musk-led company had filed the suit against Tesla Power India last year. 

2 AM VC Floats Fund II: The early-stage venture capital firm has announced the launch of its second fund, which will back 30 Indian startups. The VC firm will invest in sectors across consumer tech, fintech, food and beverage, artificial intelligence and SaaS.

Inc42 Startup Spotlight

How Beyond Appliances Is Making Indian Kitchens Smarter

Having already dabbled in restaurant robotics with Mukund Foods, Eshwar K Vikas teamed up with his colleague Rakesh Patel to incorporate Beyond Appliances to disrupt Indian kitchens with AI solutions. 

Indian Kitchens Get An AI Makeover: The Bengaluru-based startup sells smart chimneys and hob-top stoves. The startup’s AI-powered chimneys come with a 7-inch touchscreen, OTT and YouTube access, predictive maintenance alerts, and a 3D suction system. Another key product of the startup is the Dorado Hobtop, which features timer-controlled cooking, flame failure devices on all burners, auto ignition, and digital timers.

The Growth Blueprint: India’s smart kitchen market is projected to become a $4.8 Bn opportunity by 2030, and Beyond Appliances wants to ride this wave on the back of AI solutions. 

However, in its quest, it will have to lock horns with legacy players like Bosch, Faber, and Glen. The startup plans to take on these well-established behemoths with its AI-powered solutions powered by data from Mukunda Foods and a network of chefs.

The playbook is working wonders, as the company has built a significant customer base within six months of its inception. Can it become India’s biggest tech-led kitchenware brand by the time it matures?