#MarketWire is a quick round up of notable business movements of the day. This segment features news from Uber, Flipkart and Biz2Credit.
Uber India CEO says,“We are as big as OLA with 50% market share”
The battle between US based cab aggregator Uber and its domestic rival OLA seems to be getting more intense. “We are as big as Ola with a 50% market share (in terms of trips completed by the two companies). However, we are driven by more ambitious goals. Internally, our team looks at the total number of rides in a city and compares what percentage of those are Uber rides.”, Uber India CEO Amit Jain told The Economic Times.
The comment comes months after Softbank, who is the largest investor in OLA, said that its Indian portfolio company controls the 85% of the India’s taxi market.
India is the third-largest market (in terms of the total number of trips) for Uber, after US and China. It is present in 27 cities across the country and will launch operations in another five cities this year.
Uber raised $3.5 billion investment from Saudi Arabia’s sovereign wealth fund last week. Jain also told that Uber will continue to invest in its India operations. The investments will go mainly toward increasing the number of drivers on its platform, adding product features and strengthening its technology team in India. Read More
Flipkart Tightens its Return Policy for Popular Products
Flipkart, India’s eCommerce giant, has revised its return policy, narrowing the window to 10 days from the previous 30. However, the new 10-day policy for returns applies only to categories such as mobile phones, electronics and books – the top-selling items on Flipkart. The policy comes into effect from June 20.
Considering the increase in commission that Flipkart charges its seller, prices of products are likely to go up. Flipkart is also discontinuing the Zero+ Commission Policy. Under this policy, which it introduced recently, it had stopped charging commission from certain groups of sellers, instead asking them to advertise on its platform for a fee. This policy also barred sellers from charging shipping fee from customers. Read More
Biz2Credit bets big on the $300 Billion Indian Funding Market through Online Financing
Biz2Credit is expanding its small business lending operations into a market without much experience with alternative finance. An announcement on Friday (June 3) said the company will enter India, providing online financing to its SMEs.
“India has huge market of around 29 million small businesses and SMEs contribute 45% to the country’s industrial output and to 40% of the total exports. The new trends in SME financing are getting influenced by digital revolution. This includes analytics based lending, peer to peer lending and various other variants. Digital Finance will capture at least 10% of the $ 300 billion Indian Funding market” Said Mr. Ramit Arora, President & Co-Founder of Biz2Credit.
“Using its proprietary technology, Biz2Credit matches borrowers to financial institutions based on each company’s unique profile, in a safe, efficient and price-transparent environment…,” added Mr. Ramit Arora. Read More