Mukesh Ambani-led Reliance Jio is now planning to foray into the app-based taxi space with its new service ‘Reliance Jio Cabs.’ This service is likely to become operational this year.
According to the report published by FactorDaily, Jio has ordered 600 cars to kickstart the service. Initially, this service will become operational Bangalore and Chennai followed by the similar launch in Delhi and Mumbai.
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Reliance is also consulting with E&Y to come up with pricing strategies and devise the business model. Mukesh Ambani instructed consultants at E&Y with one single line “go all out to get market share.” The company is also in talks with several financial institutions to offer quick auto loans to drivers who wish to become part of their network.
It is worth to note that Reliance Jio has partnered with Uber earlier this month to integrate JioMoney as a payment option in Uber.
The company is planning to launch the service after April but there is no confirmed timeframe for this. Soon after testing, Reliance Jio will go with wider roll out strategy that it followed with Reliance Jio’s telecom service.
Uber and Ola both should worry now because Reliance has already shown that it wants the Complete dominance of the market. App-based taxi booking market is expected to touch $20 billion. In 2016, it saw over 500 million taxi rides booked via apps. So, this market has potential.