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The taxi market in India has grown at a tremendous pace in recent years. In financial year 2020, the southern state of Tamil Nadu had the highest number of more than ** registered taxis. Majority of the market is still in the unorganized sector. The organized taxi market only constitutes about **** to **** percent of the total share. 

Demographics

The market competition between Ola and Uber in the taxi market is dominated by Ola. The Softbank-backed startup had a reach of over ** percent in tier 1 cities and a combined reach of almost ** percent in tier 2 and tier 3 cities across the south Asian country. The growing penetration also resulted in increased usage. Compared to about ** percent of users installing the Uber taxi app, Ola had a share of more than ** percent of the smartphone users installing the app at the end of 2017.

The competition gets fierce

Seven years after being founded, the country’s largest ride-hailing company has entered overseas competition in Australia. Since its competitor has been facing certain challenges regarding tax and the appointment of a new global CEO, the opportunity for Ola to tap into the domestic and overseas market alive is tremendous and could transform the business altogether in the coming future.