Ola plans to launch the service by September

London's transport regulator has permitted ride-hailing company Ola to launch its service in the city, the company said on Thursday.

The move comes days after Estonia's Bolt, backed by German automaker Daimler, re-entered the London taxi market dominated by Uber and the city's ubiquitous "black cab" taxis.

Bengaluru-based Ola, which like Uber counts Japan's SoftBank Corp as one of its backers, said the company got a private hire vehicle licence to operate in UK's capital city.

"We are looking forward to building world-class mobility offerings for London, by collaborating with drivers, riders, the government and local authorities," an Ola spokesperson said in a statement.

Financial Times first reported the development earlier in the day and said the company plans to launch the service by September.