Uber rival Ola launches in Auckland, Wellington and Christchurch with lower commission rates

Brian Dewil, Ola New Zealand country manager. Photo / Supplied

Indian ride-sharing giant Ola has today launched its services in Auckland, Wellington and Christchurch ramping up competition against Uber and Zoomy.

Ola launched in Australia in February and the UK in August, and is said to offer lower commission rates for drivers at nine per cent.

Like Uber and other ridesharing services, Ola operates through a smartphone app pairing drivers with riders close by.

Its app features real-time ride tracking, and has an in-app emergency button which enables riders to instantly share location coordinates, vehicle and driver information with friends, family and emergency services.

"Entering New Zealand is an important step for Ola, and the ridesharing industry here," Ola New Zealand country manager Brian Dewil said. "Over recent weeks, we've received enthusiastic feedback from drivers across Auckland, Wellington and Christchurch."

The company puts particular emphasis on its relationship with drivers, offering a lower per-ride commission rate than that offered by either Uber or Zoomy.

Ola is entering the market with a an introductory commission rate of 9 per cent - well below the 15 per cent charged by Zoomy and the 20-25 per cent charged by Uber.

Ola is offering 50 per cent off of rides for users' first month to celebrate its launch.

In 2016, Uber provoked the ire of Auckland drivers by increasing its commission rates to 25 per cent for new drivers.

During the same year, the company also dropped the cost of the service for riders, adding to the pressure on drivers.

Ola was founded in 2011 by Bhavish Aggarwal and Ankit Bhati.