New rideshare service Ola launches in the Illawarra to take on Uber

The Indian rideshare business Ola launched in the Illawarra, South Coast and Southern Highlands this week.

For riders, there might not be much difference between the two - but there is a big change for drivers.

Ola takes a 15 per cent commission from drivers, compared to Uber's 27.5 per cent - which driver Justin Crampton-Smith found very appealing.

An Uber driver for two years, Mr Crampton-Smith decided to give Ola a go, because it meant more money in his pocket.

"The main thing is they're offering a better rate than Uber," Mr Crampton-Smith said.

"Uber's fees are quite high for drivers and with the cost of petrol going up it's made it a little bit tighter. Sometimes you come home and think it wasn't really worth it that night.

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"Ola's rates are attractive and so far, the sign-up incentives have made it worthwhile."

Mr Crampton-Smith said he planned to drive exclusively with Ola for a few weeks and see what happened, because he felt Uber will take some sort of action.

"I'm sure Uber aren't going to stand there and go, 'Ola's here, we're not going to do anything'," he said.

"I'm sure something's going to happen with them. Any good business knows if you've got competition, you have to compete."

Ola's Australia and New Zealand managing director Simon Smith said the move to Wollongong came after setting up in the capital cities and areas like the Sunshine Coast and Newcastle.

"We've been happy with our success there and we think now is the time to open in Wollongong," Mr Smith said.

"We've also had Wollongong customers and drivers approaching us and ask us when we're going to launch down there."

He said Ola had signed up more than 100 drivers to operate in the Illawarra, South Coast and Southern Highlands, all of whom had to pass stringent checks.

"It's actually very onerous," he said.

"NSW is the hardest state in which to get licenced, it has the toughest legislation."

Mr Smith said there was "nothing to stop us being number one in the market".

One difference for the rider is the introduction of a "start code" that is sent to them after their booking is confirmed.

When they get in the car, they have to supply the code to the driver to start the trip.

"Customers told us that they did have a concern from time to time about getting in the right car, especially during busy periods, so this is a response to that," Mr Smith said.