Ola is planning to launch its auto-rickshaw hailing service in Chandigarh soon. Jugnoo, an auto-rickshaw aggregator funded by Paytm, has accused larger rival Ola of poaching employees and lifting its employee and driver database in Chandigarh.

In a letter dated December 1, Jugnoo’s founder and chief executive Samar Singla asked his employees not to fall for rumours. “They are calling our drivers and telling them Jugnoo is shutting down The whole ecosystem is judged on the way an Ola or a Flipkart behaves. They are burning cash and inflating numbers. Ola says its driver base doubled, my investors are telling me why I haven’t been able to double,” Singla, who was in San Francisco, said in a telephone interview. He said Jugnoo has not lodged any complaint so far.

Jugnoo, which was founded little over a year ago, has raised about $9 million so far. The company counts Paytm, SnowLeopard and Freecharge founder Kunal Shah as its investors.

In November, Jugnoo claimed it had 3,300 autos on its platform across 22 cities. It has around 15,000 daily transactions and a user base of one million.

On the other hand, Ola claims to have 350,000 vehicles registered on its platform, including autos and meter taxis. Ola says it provides services in 102 cities.

Source: Business Standard