case study of ola and uber

Ola vs Uber Complete case study, comparison and Business Model

Post author: Tanya Mishra
Post published: April 29, 2023
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The rise of ride-hailing/ taxi services has entirely transformed the transportation industry. Booking a ride on your smartphone and having it come pick you up from your doorstep is a common occurrence these days. The convenience of ride-hailing services has led to a meteoric rise in their usage, especially in crowded urban regions. Statista projects that the worldwide ride-hailing market is likely to expand by US$ 126.5 billion by 2025.

While their services are comparable, there are significant distinctions between the two firms that set them apart. This blog will compare and contrast Ola and Uber, looking at their respective business plans, marketing approaches, and brand identities in great detail. We’ll also look at other essential criterias, such as market share, revenue, and growth rate, to determine which firm is more successful in India.

Ola vs Uber Comparision

When it comes to comparing Ola vs Uber, there are numerous aspects to contemplate, including service excellence, pricing, security, and accessibility. Let’s take a meticulous glance at the Uber and Ola case study with these distinctive factors.

Market Share and User Base:

In terms of market share, Ola has a significant lead over Uber in India. According to a report , Ola had a 59% market share in India’s ride-hailing market in 2022, while Uber had a 41% market share. However, both companies have faced stiff competition from other ride-hailing services such as Rapido and Meru Cabs.

As of the current year 2022, Ola has amassed a whopping 100+ million registered users in India, whereas Uber boasts approximately 93+ million users. Nevertheless, it’s noteworthy to mention that the count of monthly active users for both corporations is considerably lesser.

Ola and Uber Marketing Strategy Case Study:

Both Uber and Ola in India have extensively invested in advertising and branding to establish themselves as the preeminent ride-hailing service. Ola has been widely recognized for its assertive marketing initiatives, encompassing TV commercials, billboards, and social media promotions. On the flip side, Uber has concentrated further on crafting a polished and refined brand persona. Uber has recently launched a plethora of innovative brand campaigns in India, such as “Uber Zindagi” and “Khudki Gaadi”, to entice a larger customer base.

Business Model:

Both Ola Auto vs Uber Auto have analogous business models, which entail linking commuters with chauffeurs through a mobile application. Nevertheless, there are certain disparities in their methodology. Ola boasts of a multifaceted business model, encompassing many services such as Ola Auto and Ola Bike. Ola additionally provides a plethora of payment alternatives, encompassing cash, debit cards, credit cards, and mobile wallets. Conversely, Uber concentrates on automobile journeys and has freshly introduced amenities like Uber Auto and Uber Moto in certain urban areas.

One of the paramount aspects that patrons contemplate when selecting a transportation service is the cost. Uber and Ola in India provide competitive rates and have introduced numerous exclusive promotions to entice additional patrons. Nevertheless, when it comes to overall cost-effectiveness, Ola is reputed to be marginally more economical than Uber. Additionally, Ola presents a plethora of alternatives for ride-sharing, which can substantially diminish the expenses of commuting.

Security is a significant apprehension for both Ola and Uber patrons. Both corporations have implemented a plethora of safety measures, including cutting-edge GPS tracking, in-app emergency buttons, and rigorous driver verification protocols. Ola has recently introduced a novel feature named “Guardian” that enables patrons to share their ride particulars with their emergency associates. Similarly, Uber has recently launched a novel feature dubbed “Ride Pass” that enables patrons to share their ride details with reliable acquaintances instantaneously.

Customer Support:

Regarding customer assistance, both Ola Cab vs Uber India possesses specialized customer support squads that are accessible round the clock to handle customer inquiries and grievances. Nevertheless, Ola is reputed to provide exceptional customer assistance compared to Uber. Ola business boasts a committed customer assistance squad that can be contacted through various channels like phone, email, and social media platforms. On the contrary, Uber’s exceptional customer assistance squad can solely be accessed via the in-app assistance hub or electronic mail.

Brand Image: Ola and Uber branding case study

In terms of brand perception, both Ola Cab vs Uber India enjoys robust brand recognition in India. Nevertheless, Ola is commonly regarded as a quintessentially Indian brand, whereas Uber is often viewed as a globally recognized brand. This is primarily attributable to the fact that Ola has been functioning in India for a more extended period and has a more indigenous approach to its amenities. On the contrary, Uber has been renowned for its exceedingly comprehensive perspective and has triumphantly broadened its amenities to numerous nations across the globe.

Service Quality:

Both Ola and Uber provide comparable services, such as ride-sharing, car rentals, and bike-sharing. Nevertheless, the caliber of assistance may fluctuate contingent on aspects like the chauffeur’s proficiency, the state of the automobile, and the accessibility of conveniences like Wi-Fi and mobile chargers.

Ola and Uber utilize dynamic pricing, which implies that tariffs may fluctuate based on factors such as demand, traffic, and the hour of the day. Nevertheless, Ola is reputed for providing comparatively economical fares than Uber in several cities, thereby assisting the enterprise in acquiring a greater market share in India.market share in India.

Performance – Ola vs Uber

In terms of efficiency, both Uber Cabs vs Ola Cabs have achieved remarkable success in their markets. Ola enjoys a substantial market share in India, whereas Uber reigns supreme in the US and numerous other nations. As per a recent study, Uber amassed over 1 billion global downloads in 2022, whereas Ola garnered more than 550 million+ million downloads. Furthermore, Ola exhibited a superior expansion rate in comparison to Uber, with a year-on-year surge of 42% as opposed to Uber’s 21%.

Business Model Analysis – Ola vs Uber case study

Ola’s distinctive business strategy revolves around providing cost-effective rides to its clients. The corporation has accomplished this by utilizing agile pricing and offering motivation to drivers. Ola business model has additionally broadened its offerings to encompass various transportation alternatives like Ola Auto, Ola Bike, and Ola Rentals, accommodating diverse client requirements. Ola has recently launched Ola Share, an innovative carpooling service that enables passengers to share their rides with fellow commuters heading in the same direction. This service has garnered immense popularity in numerous cities.

On the contrary, Uber business model is also concentrated on providing cost-effective rides to patrons. The corporation has accomplished this feat by implementing surge pricing during high-demand periods and offering diverse incentives to drivers. Uber has additionally broadened its range of services to incorporate UberGo, UberX, UberPOOL, and UberBLACK, accommodating various customer requirements. Uber has recently launched UberEATS, an innovative food delivery platform that brings delicious meals from nearby eateries straight to hungry customers.

Both corporations function on a comparable model, where they receive a percentage of the fare paid by the passenger as their remuneration. Nevertheless, there are some notable disparities in their methodology towards their drivers. Ola has an exceedingly driver-friendly policy, providing them with numerous incentives and benefits, such as comprehensive health insurance and substantial financial assistance. Uber, conversely, has faced censure for its handling of drivers, who are deemed as autonomous contractors and not staff members.

Regarding financing, both Ola and Uber have obtained significant investments from diverse investors. Uber has received financing from SoftBank, Toyota, and the Public Investment Fund of Saudi Arabia, while Ola has just garnered funds from SoftBank, Tencent, and Sequoia Capital, among other important investors.

Q1. Ola vs Uber which is cheap?

Typically, Ola is marginally more economical than Uber in India, particularly for communal journeys and brief distances.

Q2. Ola vs Uber which is better?

Each Ola and Uber possess their unique strengths and weaknesses, and the ultimate decision relies on personal preferences and priorities.

Q3. How exactly does Uber contend with Ola in the Indian market?

Uber fiercely competes with Ola in India by offering competitive pricing, exciting promotions, and expanding its reach to new cities and services.

Q4. How does the fare comparison differ between Ola and Uber?

The tariffs for Ola and Uber differ based on variables such as distance, time of day, and demand.

Q5. What is the distinctive business strategy of Ola vs Uber?

Ola and Uber generate substantial revenue by taking a nominal commission on each ride and have remarkably expanded into new services like scrumptious food delivery and rental services.

Final Words

In conclusion, both Ola and Uber have remarkably transformed India’s ride-hailing sector and have revolutionized how individuals travel in metropolitan regions. Although both corporations possess their advantages and drawbacks, they have successfully acquired a substantial portion of the market by introducing inventive solutions and maintaining competitive pricing.

In the end, the decision between Ola and Uber boils down to individual inclination and specific necessities such as cost, accessibility, and client assistance. Therefore, it is crucial to meticulously contemplate all these aspects before selecting a ride-hailing platform in India.

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Ola Case Study – The Success Story Of Ola!

Supti Nandi

Updated on: August 17, 2023

What’s the first thing that comes to your mind after hearing the term “Ola”? Online cab booking! Isn’t it? Have you ever wondered how Ola became synonymous with online booked cabs? Due to its successful operations and services. Well, that’s true. But apart from that numerous other factors have also played crucial roles to make the cab-booking start-up successful. So, in this write-up, we will shed light on Ola Case Study and will decode the success story of Ola.

Stay tuned!

Ola: A Brief Overview

Ola, originally known as Ola Cabs, is a successful Indian ride-hailing company that has revolutionized the cab booking industry. The success story of Ola is a result of the visionary thinking and perseverance of its co-founder, Bhavish Aggarwal.

The name “Ola” was derived from the Spanish word “Hola” meaning “Hello” or greetings. Before diving deeper, let’s have a brief overview of the company-

History of Ola

The birth story of Ola begins with the difficulty faced by Bhavish Aggarwal (Founder). How? When he was unable to find a reliable cab.

Ola was established on December 3rd, 2010, to address the pain points faced by commuters in India. Bhavish Aggarwal, while he was traveling from Bangalore to Bandipur, faced difficulties in finding a reliable cab.

You too, might have faced this sort of difficulty a decade back! Didn’t you? So, what did you do at that time? Contacting a local taxi aggregator with fluctuating prices was the only solution. This problem sparked the idea of creating a platform that would connect passengers with cab drivers efficiently and conveniently. The affordable and standard price of cab bookings was the cherry on top.

What problem did Ola solve? The cab booking problem!

From its humble beginnings, Ola quickly gained traction and became one of the fastest-growing startups in India. It surpassed its global rivals like Uber and Meru Cabs. Thus, it became India’s leading ride-hailing platform.

Ola’s Journey

The successful journey of Ola has been marked by rapid growth, strategic partnerships, and innovations. It introduced features like Ola Money, a digital payment solution, and Ola Share, a carpooling service aimed at reducing traffic congestion and promoting eco-friendly transportation options.

In addition to ride-hailing, Ola ventured into other segments like food delivery (Ola Foods) and electric vehicle infrastructure (Ola Electric). Ola Electric gained attention for its plans to build a network of electric vehicle charging stations and develop electric two-wheelers.

Ola’s success can be attributed to various factors such as its user-friendly app, wide availability of cabs, competitive pricing, and focus on customer satisfaction. We will dig deeper into these factors in the next section.

Key Factors that attributed to Ola’s success

This is the most important part of the Ola case study. The success story of Ola can be attributed to the following key factors-

(A) Innovative Business Model

Ola introduced an innovative business model by offering a convenient and affordable alternative to traditional taxi services. It is based on the concept of the “ sharing economy .” It connects passengers needing rides with drivers who use their vehicles.

Some of the highlighting features of the Ola Business Model are-

(A.1) Asset Utilization

Ola optimizes the use of existing resources (drivers’ cars). How? By providing a platform for drivers to offer rides when they have available time, increasing the utilization of their vehicles.

(A.2) Flexible Income

Drivers have the flexibility to work when they want, allowing them to earn income on their terms. This can be particularly appealing to those seeking part-time or flexible employment.

(A.3) Convenience

Passengers can request rides using the Ola app, which provides real-time tracking, cashless payments, and a seamless booking process.

(A.4) Dynamic Pricing

Ola employs a dynamic pricing model (surge pricing) during peak demand times. This feature incentivizes more drivers to come online, ensuring passengers can find rides even during busy periods.

(A.5) Inclusive Model

Ola has expanded beyond urban areas, providing transportation services to underserved and remote regions. Thereby, it enhanced mobility and connectivity.

(A.6) Data Utilization

Ola collects data on travel patterns, demand, and user preferences. This feature enables them to optimize their services, improve efficiency, and offer tailored promotions.

Thus, Ola’s innovative business model leverages technology, data, and a decentralized workforce to transform the transportation industry. It aims to provide affordable and convenient ridesharing services to a wide range of customers.

(B) Diverse Revenue Sources: How Does Ola Make Money?

Ola Revenue Sources: How does Ola make money?

In fiscal year 2022, Ola earned revenue worth Rs.1,970 crore ($250 million). That’s quite impressive. Isn’t it? This fact boils down to one question. How does Ola make money? Ola generates revenue primarily through the following sources-

(B.1) Ride-Hailing Services

As you know, Ola’s core business involves ride-hailing services to customers. The company earns money by charging passengers for the rides they take. The fare charged is usually based on factors such as distance traveled, time taken, and other applicable fees.

(B.2) Commissions from Drivers

Ola takes a percentage of the fare as a commission from its drivers, who operate as independent contractors. This commission varies by region and service type.

(B.3) Surge Pricing

This is a very interesting source of revenue. How? You may ask. Due to its fluctuation! Isn’t Ola famous for its standardized pricing? Yes, it is true. But the pricing changes as per the traffic on the road! During peak demand periods or high-traffic situations, Ola may implement surge pricing. This feature temporarily increases the fare to incentivize more drivers to be available. This allows Ola to generate higher revenue during times of increased demand.

(B.4) Subscription Plans

Ola offers subscription plans that allow users to pay a fixed fee upfront for a certain number of rides or a specific period. These plans provide a sense of convenience and predictability for frequent riders.

(B.5) Food Delivery (Ola Foods)

As you have read above, Ola introduced a food delivery segment too! Through Ola Foods, it earns revenue by charging restaurants a commission on orders placed through its platform. Thus, it competes with major food delivery platforms like Zomato and Swiggy . Although Ola has stopped and re-launched Ola Foods multiple times. But as of now, it operates through cloud kitchens .

(B.6) Ola Money

Ola has a digital wallet called “Ola Money.” Users can add funds to their Ola Money wallet. You can use it to pay for rides, food orders, and other services within the Ola ecosystem. Ola earns money through transaction fees and by investing the funds in the wallet.

(B.7) Advertisements and Partnerships

Ola collaborates with brands for promotional campaigns or advertisements within their vehicles or app. Such partnerships provide an additional stream of revenue.

Thus, these revenue streams collectively contribute to Ola’s overall financial performance and growth.

C) Market Disruption

Do you know what is the most impressive part of the Ola case study? Its market disruption strategy! Ola disrupted the traditional taxi industry in India through its innovative business model. By leveraging technology and a user-friendly app, Ola transformed the way people access and use transportation services. It offered a convenient and cashless booking process, real-time tracking, and dynamic pricing, which were absent in traditional taxis.

(C.1) Part-time drivers

Ola’s model empowered a large number of individual vehicle owners to become part-time drivers, significantly increasing the supply of available rides. This led to reduced waiting times and increased accessibility for passengers, challenging the monopoly-like hold traditional taxis had on the market.

(C.2) Cost-Effective Model

Additionally, Ola introduced cost-effective carpooling options, promoting resource optimization and reducing congestion. Ola case study is incomplete without its cost-effective model. We have explained it in the previous sections in detail. The dynamic pricing mechanism during peak hours ensured that even during high-demand periods, users could find rides, thus addressing a common pain point with traditional taxis.

(C.3) Sharing Economy

By embracing the sharing economy, Ola not only provided affordable transportation alternatives but also created flexible income opportunities for drivers. The traditional taxi industry is often burdened by regulatory complexities and inconsistent service. It struggled to keep up with Ola’s tech-driven convenience and efficiency. You can say that Ola disrupted the traditional taxi landscape in India by introducing an innovative, technology-driven platform. It offered convenience, efficiency, affordability, and income opportunities. Thus, it led to a paradigm shift in how people perceive and use transportation services.

(D) Strategic Expansion

It is a crucial part of Ola case study. Ola strategically expanded by diversifying its services beyond ride-sharing services. It introduced several subsidiaries and services-

Some other services of Ola are-

Ola Fleet : It involves the leasing of taxis to partnered drivers
Ola Foods : Do you know, Ola acquired the Indian subsidiary of Foodpanda in 2017? With this, Ola entered into the food delivery segment. Thus, it competed with Z omato & Swiggy .
Ola Financial Services : In 2015, Ola launched mobile payments and wallet services in the Ola app. It was called OlaMoney. It offered lucrative financial services like buy now pay later, insurance, vehicle loans, and credit cards.
Ola Electric : Ola Electric Mobility is an Indian electric two-wheeler manufacturer, based in Bengaluru. It was established in 2017 as a wholly-owned subsidiary of ANI Technologies, the parent entity of Ola Cabs.
Ola Ambulance: Ola has been providing Ola Emergency medical care services in several cities throughout India since Covid-19. It enables citizens to access essential medical care without any delay. (However, there are no latest updates on Ola Emergency Services. In case we find any authentic and latest reports, we will update you soon!)

(E) Global Expansion

Ola ventured into international markets too! Yes, it established its presence in-

United Kingdom
New Zealand

These expansions aimed to increase market share, and revenue streams, and create an ecosystem of interconnected services. By adapting to evolving consumer needs and exploring new territories. Ola aims to secure a competitive edge in the global transportation and mobility industry. Thus, Ola case study emphasizes on the significance of global expansion.

(F) Sustainable Practices

Ola Cabs incorporates sustainable practices by introducing electric vehicles (EVs) into its fleet. This initiative aims to reduce carbon emissions and promote clean transportation. They implement ride-sharing to optimize vehicle usage, reducing traffic congestion and pollution. Ola also focuses on driver-partner welfare, offering benefits and training programs. Sustainable practices are the important part of Ola case study.

The Ola “ Mission Electric ” initiative aims to pledge to reject petrol vehicles and opt for e-vehicles. It committed to introducing electric vehicles and reducing global emissions and fossil fuel dependency. It wants to make India, the epic center of electrification.

The company invests in charging infrastructure and collaborates with governments for EV adoption. These practices contribute to a greener environment, lower carbon footprint, and a more sustainable urban transportation ecosystem.

(G) Customer Centric Approach

Ola’s customer-centric approach prioritizes delivering a seamless and personalized experience to users. They focus on understanding customer needs, enhancing service quality, and promoting convenience. Ola’s app interface, real-time tracking, diverse ride options, and responsive customer support exemplify their commitment to user satisfaction. Regular feedback integration and loyalty rewards reinforce this approach, ensuring Ola continually evolves to meet and exceed customer expectations, fostering lasting relationships and loyalty.

In the Ola case study, its success story is characterized by its innovative approach to transportation, strategic expansion, and continuous efforts to improve customer satisfaction. Thus, it became a prominent player in the ride-hailing industry.

How Ola is different from its contemporary cab services?

Ola differentiates itself from other cab services through its innovative pay-per-performance model for drivers and its commission-based earning structure for every taxi booking. This unique approach allows Ola to attract drivers and incentivize them to provide excellent service to customers.

Also, it differentiates itself from its contemporary cab services through its innovative features. Such as an extensive range of ride options, a user-friendly app interface, etc.

Unlike its competitors, Ola offers various vehicle choices, including economy, premium, and shared rides, catering to diverse customer preferences. The app’s intuitive design simplifies booking, real-time tracking, and cashless payments. Ola’s focus on localized features, such as language preferences and in-app entertainment, sets it apart. Additionally, Ola’s commitment to sustainability, electric vehicle integration, and driver welfare showcases its forward-thinking approach. These elements collectively distinguish Ola case study as a holistic and customer-centric ride-hailing platform.

Market Share of Ola

In terms of market share, Ola has been a dominant player in the Indian online taxi services market. In FY 2022, Ola’s market share accounted for approximately 59%. Back in FY 2019, Ola accounted for approximately 72.44% of the total revenue generated by the online taxi services market in India. However, it’s important to note that market dynamics can change over time. As of September 2019, Ola and Uber had market shares of 35% and 45% respectively. But now their market share is 50% and 41% respectively. This indicates a competitive landscape with fluctuating shares.

Note : We have written a detailed comparison on the topic “ Ola vs Uber: Which one is doing better business in India? ” You can look into it for more information.

Why was Ola banned?

On March 2023, the Delhi Government banned online taxi services including that of Ola, Uber, and Rapido bikes. Reason? The government banned Ola citing violations of the Motor Vehicles Act, of 1988. It made aggregators liable for a fine worth Rs.1 lakh.

As per the amendments made in the Motor Vehicles Act in 2019, the aggregators weren’t permitted to operate without a valid license. The government didn’t want the aggregators to compromise the safety of customers. That’s why only those with invalid licenses were banned.

Challenges Faced by Ola

Apart from the ban described above, Ola faced numerous challenges that also impacted its operations. Some of the major challenges were-

1. Regulatory Hurdles

Ola has often encountered regulatory challenges in various regions due to the disruption it brought to the traditional taxi industry. Local governments and taxi unions have raised concerns about Ola’s business model, safety standards, and the classification of drivers as independent contractors.

2. Competition and Market Saturation

Ola has faced intense competition from other ride-hailing platforms, especially Uber. The struggle for market dominance led to price wars and aggressive discounts, impacting Ola’s profitability and brand image. As the market became saturated, customer acquisition became more challenging.

3. Driver Partner Relations

Maintaining a healthy relationship with its driver-partners has been a challenge for Ola. Concerns over fare cuts, incentive changes, and working conditions have led to protests and strikes by drivers, affecting the company’s operations and reputation.

4. Economic and Financial Factors

Economic downturns and fluctuations can impact consumer spending habits, affecting Ola’s ride demand and revenue. Maintaining profitability and financial stability in such conditions is a continual challenge.

Future Plans of Ola

In terms of expansion, Ola has plans to extend its services to 500 towns, bringing shared mobility to 500 million people. They have begun aggressive expansion overseas too! Additionally, Ola is venturing into new avenues of transportation. By the end of 2023, they are set to launch a motorbike. This plan is followed by the introduction of a battery-powered car in 2024. These upcoming vehicles will further expand Ola’s presence in the mobility sector.

Overall, Ola Cabs is dedicated to embracing electric mobility and expanding its services to reach millions of people across different towns. Through their “ Mission Electric ” initiative, they aim to contribute to a sustainable and eco-friendly future. Also, providing convenient transportation options to its customers is one of its essential features.

Startups are one of the key players in the nation’s development. Not only it boosts innovation but also provides employment and services. However, as per the statistics, startups have extremely high mortality rates. Reason? Lack of strategic planning, humongous losses, expenditures, etc. Fortunately, some startups have turned the tables in India with their successful operations. And Ola is one of them!

Ola case study is a popular success story in the Indian startup ecosystem. It exemplifies the power of innovation, entrepreneurship, and understanding the needs of the market. By leveraging technology, Ola created a platform that transformed the way people commute in India, providing convenience and reliability.

Overall, Ola’s success can be attributed to its commitment to providing a seamless and efficient cab booking experience to its users. It became a kingpin of online cab booking services. All thanks to its constant efforts to adapt to changing market dynamics.

Really impressive and informative thanks supti ….😊😊🤗❣️

It was a knowledge gainer and well research drafted. I am eager to know how Ola initially persuaded Taxi drivers to operate on their App Whether it was D2C or by digital marketing.

Contact Info: Axponent Media Pvt Ltd, 706-707 , 7th Floor Tower A , Iris Tech Park, Sector 48, Sohna Road, Gurugram, India, Pin - 122018

Contextual Inquiry Related to Cab Booking: Using Uber and Ola Cabs in India

First Online: 01 June 2021

Cite this chapter

Akash Rode 5 &
Ganesh Bhutkar 5

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Ola Cabs and Uber are leading Cab Booking Apps in India that offer services like cab booking, ridesharing, and food delivery. To cater to the increasing demand from customers and to expand their horizons, these tech giants are involved in constant competition with each other to gain new users and retain existing ones. This research paper is a result of an extensive study of the notion of cab booking in India. The objective is to understand the nature and the perception of Indian users who avail these cab services via mobile apps, especially users of Uber and Ola Cabs. In doing so, the motive is to empathize with Indian cab users, both drivers and travelers, by understanding their problems and frustrations. This is achieved by using the ethnographic approach of Contextual Inquiry and work models are developed based on the insights found therein.

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Uber Driver & Grandmother By Urooj Ashfaq. YouTube, https://youtu.be/EzJhTb564iA . Accessed on Jan 12, 2020

Uber Pool & Wagon R Standup Comedy by Ashutosh Gupta. YouTube, https://youtu.be/omy0JIUNuAw . Accessed on 12 Jan 2020

It’s My Birthday Standup Comedy by Sumit Anand. YouTube, https://youtu.be/6CdhE3hh2CQ , accessed on 12 Jan 2020

Five Star Rating Vinay Sharma Standup Comedy. YouTube, https://youtu.be/TxmGrsT0v3c , accessed on Jan 12, 2020

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Rode, A., Bhutkar, G. (2021). Contextual Inquiry Related to Cab Booking: Using Uber and Ola Cabs in India. In: Eilu, E., Baguma, R., Pettersson, J.S., Bhutkar, G.D. (eds) Digital Literacy and Socio-Cultural Acceptance of ICT in Developing Countries. Springer, Cham. https://doi.org/10.1007/978-3-030-61089-0_3

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Taxi Drivers and Taxidars: A Case Study of Uber and Ola in Delhi

2018, Journal of Developing Societies

This article examines the role of the sharing economy in India’s development through the examples of aggregated taxis such as Uber and Ola in Delhi. 1 Based on a general survey of Uber and Ola drivers and users in Delhi, we argue that Uber and Ola do not measure up to their expected potential in the development of India’s economy on the parameters of ecological sustainability, employment through renting out assets and reduction in the need to own assets. Yet, Uber and Ola are notable for the creation of viable employment opportunities for drivers, and their many benefits for urban middle class users. Unique to the Uber and Ola phenomenon in India is the interception of driver opportunities by taxidars (taxi-owners). This tweaked Uber model for the Indian market allows the middle class individual—the police official, bureaucrat, property dealer, transporter or a professional—an entry into the aggregated taxi market.

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Examining the practices, strategies and policies of those involved in ride-hailing platforms as imagined affordances reveal how India’s platform urbanism is co-constituted. The negotiations of ride-hailing drivers with multiple techno-social actors and arrangements are engendered by both enabling and disabling neoliberalism. This chapter explores the contestations and affordances of the ride-hailing economy, the practices and discourses of performing “community” and the governance of and by platforms. It presents original discourse and textual analysis of journalistic accounts of Uber and Ola drivers’ narratives, advertisements, YouTube videos and corporate blogs published between 2013 and 2019. The micro-politics, contestations and dissonances of ride-hailing taxi platforms in India reveal how motoring structures and infrastructures are organised as well as how practices and discourses illuminate their operation. One important conclusion is that the strategies and practices to enable and disable “sharing” do not map onto individual actors, leaving the “sharing” ethic as fundamentally contingent and messy.

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Digital mobility platforms such as “Uber” are forms of passenger transportation that have become integral parts of the mobility landscape of cities. The policy response to these services has varied across the world, from complete abolition to integration into local transportation laws. The global business model of Uber has been met with fierce resistance by local taxi service providers and resulted in open conflicts in cities such as Barcelona, Berlin, Paris and even stirred violence e.g. in Johannesburg. In all these cities, taxi operators feared and experienced a substantial loss of patronage. Due to the legal challenges and increased competition in almost every part of the world, the consequences have been widely reported and discussed in the media. However, the dynamics of the changing mobility landscapes in cities have been poorly understood so far, partially because they have been observed without taking into account global as well as specific local processes of urban change. Although being a universal business model making use of similar sets of digital tools, I point towards the fact that the actual operation of these services is embedded in the local social, political and economic fabric. While being a “disruptive” business model, I argue that these services are also part of a wider process of urban change. At the same time, the operation of such services builds on pre-existing social inequalities, socio-spatial fragmentation and exploitation that are defining characteristics of the capitalistic city in both the global North and South. This PhD project aims at better understanding the nature of the apparent conflict between the “new” and “old” forms of mobility. I chose Mumbai, with its iconic black-and-yellow taxi, as a case study.

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Ola case study: The story of a Millionaire without a car

With this piece, we take a look at the Ola case study. Essentially discovering how Ola came into being, understanding their business model and finally what’s next for them. Let’s jump right in the story.

The Ola case study: The story of Ola

The year is 2010. Bhavish calls a taxi service portal to rent a taxi. He has to travel to Bandipur from Bangalore. He’s already in a rush and the driver is still not here. Helpless, he sits there waiting for his taxi to pick him up.

The driver comes and Bhavish boarded the car. He thought there’s no point of questioning the driver why he is late. He already knows the driver’s answer. Quietly, he is waiting for his destination to arrive soon.

The jungle arrives. To Bhavish surprise, the driver stopped the car in the middle of the jungle.

Bhavish: “Why have you stopped the car?”.

Driver: I won’t go further.

Bhavish: But why?

Driver: Road is dangerous ahead. I’ll charge extra for it.

Bhavish: It makes no sense. We have already fixed the price. You should have charged considering all the factors.

Driver: No, I won’t go until you pay me more.

Bhavish thought if he’ll deny payment to the driver, he won’t resist and will continue at the fixed price. But the driver leaves him in the middle of the jungle and returns back to Bangalore. It left Bhavish infuriated.

While walking back, Bhavish realises he has to do something about this issue. He is seeing an opportunity that will turn the life of millions. And this is how OLA cabs came to existence !

Business model: How does OLA Work?

Most people think Ola is a taxi service business. If you’re one of them, then you are slightly wrong.

Ola is a taxi aggregator business. They act as an intermediary between taxi drivers and customers. The company partners with private taxi owners, provide them process and technical equipment for booking through the Ola app.

They follow the ‘Asset Light Model’ where a business owns few capital assets in comparison to the value of its operations. Ola has given full autonomy to drivers by making them entrepreneurs. This way Ola doesn’t have to worry about car’s EMI cost, petrol cost, maintenance cost, driver’s salary, etc. Ola has become highly profitable because they only have to invest in technological advancement. It’s a win-win for both Ola and the drivers.

Revenue model: How does OLA earn money?

Ola charges a 15% commission on every ride . For example, if a ride costs Rs.200 to the customer, Ola will claim Rs.30 and the remaining amount will go in the pockets of the driver.

Ola has been doing 1.5 million rides approximately on a daily basis which means they are at least earning half a million daily.

Ola has introduced a ‘Minimum Business Guarantee’ model which ensures every driver earns Rs.1300 daily. If unable to do so, Ola adds money to the driver’s account linked to Ola after deducting it’s 15% commission.

Other revenue streams of Ola

Ola Money: Joined the league of Paytm, PhonePe, AmazonPay, etc. through which customers can make payments to various vendors as well as for their ride.
Ola Prime Play: Providing a comfortable and more personalized experience to customers at the nominal fee.
In-cab advertisements: Use of promotional tools like brochures, leaflets, etc. to promote different brands who are ready to pay.
Cab leasing: The company purchases the car and then lease it out to the drivers. It helps in building asset value as well as bring revenue in the form of the fee charged from drivers.
Corporate tie-ups: Creating customized packages for the corporates and their employees at a subsidized rate.

OLA VS UBER:

One cannot talk about OLA, without mentioning Uber. Uber came in India after 3 years of Ola and according to Bhavish, he had never heard of Uber before. There is a continuous fight between both the companies for the largest market share. Currently, Uber operates in 58 cities while Ola in 250 cities. While Uber has said in its recent report that It has more than 50% of market share in India but no evidence was presented.

Being the leader in the market is significant for both players. While India is the home market for Ola and it is holding that spot of the largest market share, managing its profitability is crucial as it plans for a public market listing in 2021. For Uber, India continues to be an important market for the company to drive growth in terms of the number of rides.

A big advantage of Uber is the number of drivers downloading its app. On this parameter, Uber has left Ola far behind. In the coming future when the only factor will be availability, the company with a larger number of drivers will succeed, and right now Uber seems to win that battle.

What’s Next?

Ola electric mobility : Ola’s mission was to put 1 million electric vehicles on Indian roads by 2021. It even got a thumbs up from Softbank who invested $250 million in Ola’s mission.

Then the pandemic happened!

Like many of its brethren, Ola is conserving cash. They have cut down 1400 jobs, about a 1/3rd of its Indian workforce. The pandemic has forced travel and transportation space to halt their expansion plans. Even Uber has furloughed 6700 employees globally. In response to the fear of the hailing cab now, Ola is planning to install shields between drivers and passengers. Sanitizing cabs, providing sanitizers and masks to drivers, etc. to convince the customer that riding with Ola is safe.

Global domination: Since 2018, Ola has expanded its operations in Australia, UK, and New Zealand. And as the pandemic situation has been brought under control in Australia and New Zealand, companies see a huge opportunity.

The single market that Ola is betting on is London. As Ola estimated, it is as big as all of India. On the other hand, uber’s license was revoked due to continuous compromise made with the security of its riders. Ola has already signed up tens of thousands of drivers before the pandemic. Now, as the situation improves and the economy is slowly opening, people are getting back to normal life.

Again, Bhavish sees a business opportunity in the current distress which is may yield him a huge profit in the coming time.

This interesting piece was penned by Rishita Bansal . She is a brand planner & storyteller. If you liked the piece, share it with your best friend on WhatsApp or LinkedIn .

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5 thoughts on “ ola case study: the story of a millionaire without a car ”.

Ola is not taking 15 % commission

They are take More than 25 % from the Driver

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Yes ola is taking almost 30% including taxes customer service charge everything and they are giving only 10 rupees for an kilometre this 10 rupees is not only for kilometre waiting time traveling time including in this 10 rupees only for one kilometer and for 200 rp they are charging 60 rupees and for driver 140 only if I traveled for 14 kilometre 15% are all fake news

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Great blog post! I really enjoyed reading your insights on this topic. Your writing is clear, concise, and informative. I appreciate the effort you put into researching and presenting your ideas in an engaging way. The examples you provided were very helpful in illustrating your points and making the content relatable. Thank you for sharing your knowledge and expertise on this subject. I look forward to reading more of your work in the future!

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Redefining career growth: a tale of two sales leaders

Carissa Evans, Mid-Market Sales Manager and Robbie Keegan, Grocery and Retail Head of Sales, have had two different career paths at Uber Eats but have both been able to grow their careers as sales leaders by moving across different categories. Today they lead sales teams in two different lines of business. Carissa’s team supports our restaurant partners to achieve their business goals on our platform. Robbie and his team partner with brands outside of restaurants to help our customers get almost anything delivered with the convenience of Uber Eats. They both agree that the exposure and experience outside of the traditional sales role is what sets apart a career in sales at Uber.

Robbie says : “Uber’s different lines of business are at different stages of growth in each of our markets, which in turn means the opportunities for personal and professional growth are wide-ranging and readily available. Whether you’re seeking to deepen your expertise in a specific area or explore new horizons, there’s always a path forward.”

We sat down with Robbie and Carissa, both based in Sydney, to find out more about their career paths, the support they’ve had to grow at Uber and what advice they have for other sales professionals.

Tell us about yourself and your role.

Carissa: “I joined Uber Eats 2 years ago as a Partner Success Manager in our Enterprise Sales team and I’m now leading a team of 8 Account Managers on our Mid-Market Sales team. My role is to set the strategy and coach the team to better support our Restaurant Partners. Ultimately, we are responsible for helping the restaurants on our platform achieve their business goals with Uber, which means we get to solve an ever changing variety of problems.”

Robbie: “I joined Uber Eats 4 years ago as an Account Manager looking after small and medium sized businesses in New Zealand. I quickly transitioned to a new role focused on the highest potential mid-market brands which I managed for two quarters before joining the grocery and retail team, a newly established line of business for Uber at the time. Our mission is to help our customers get almost anything on the Uber Eats platform through partnerships outside of restaurants such as grocery, liquor, convenience, pharmacy and more. Initially I led account management for small-medium sized businesses and have since taken on mid-market and enterprise customers, now overseeing both account management and acquisition.”

What’s it like working in sales at Uber Eats?

Carissa: “I get to work in an environment with intelligent, positive people who support career growth. There’s lots of opportunity to take on more work and develop professionally, so I’ve been able to continue to learn and challenge myself. The business makes sure you have an understanding of the role you play in the broader business strategy and then recognises performance and supports your growth. In summary, it’s a culture that promotes growth and supports your aspirations.” Robbie: “Uber’s work environment is synonymous with speed. It’s a place where the pace is fast, and collaboration between different teams, especially sales and operations, is not just encouraged but fundamental to success. The synergy between these elements creates an atmosphere where ideas flow freely, and everyone plays a vital part in Uber’s success.”

Tell us about the support you’ve received to grow your career.

Carissa : “I’ve been given all of the flexibility I’ve needed aligned to where I was at in my life and it hasn’t held me back from growing my career. I was promoted whilst I was on parental leave and was given the opportunity to come back part-time when I returned to work. The flexibility we have to work around personal commitments is amazing and I’ve always felt supported to put my health and family first.” Robbie: “ There has been a genuine investment in my professional growth. Our leaders have consistently shown a keen interest in guiding my career trajectory, fostering an atmosphere where open communication is not just welcome but encouraged. I’ve always felt empowered to express my thoughts honestly and knowing that my concerns are heard and valued.”

What’s different about working in sales at Uber?

Carissa: “ You get so much exposure outside of your role and gain such a breadth of experience at all levels of the organisation. Part of that means that you get to work with such a variety of people with different ideas and ways of thinking that really opens your mind and gets you exposure to such diversity of thought.”

Robbie: “Regardless of your role, you get a panoramic view of the operation. The visibility extends far beyond the boundaries of traditional sales roles and you get to work on such a range of different projects. One of the most rewarding aspects is witnessing the tangible impact of your work on the lives of those around you. Ideas come to life and you get to see the ripple effect reaching your friends and family in real life.”

Any advice for aspiring sales professionals?

Carissa: “Be proactive about your career growth by building your network and ensuring the right people are aware of your aspirations. Also, don’t be limited to the most obvious next career step and be open to what that next challenge is–experience from a lateral move can give you valuable experience in the long-term.”

Robbie: “Start by mastering your core role to become the go-to expert in your field. Once you’ve established a solid foundation, cultivate a mindset of openness to diverse opportunities. Actively seek chances to work beyond the confines of your role, as the experience gained in different areas is invaluable when transitioning into more senior positions.”

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International Journal of Research in Social Sciences Vol. 9 Issue 4, April 2019, ISSN: 2249-2496 Impact Factor: 7.081 Journal Homepage: http://www.ijmra.us, Email: [email protected] Double-Blind Peer Reviewed Refereed Open Access International Journal - Included in the International Serial Directories Indexed & Listed at: Ulrich's Periodicals Directory ©, U.S.A., Open J-Gage as well as in Cabell‟s Directories of Publishing Opportunities, U.S.A

Cab Aggregators in India : A Case Study of Ola and Uber

Vinod Kumar Bishnoi* Reetika Bhardwaj** Abstract Over the past few years, there has been an unprecedented growth in the Indian taxi industry. The demand for taxis in India is on the rise owing to the hassle free travelling experience offered to the passengers. Taxi is giving a stiff competition to both public transit and private car in the current times. India currently is witnessing a revolution in Indian taxi market. There is a downward trend in the usage of traditional taxis by the customers. With the growing smartphone penetration and active internet users, there is a surging demand for app based taxis. The objective of this paper is to gain insights about the present scenario of taxi industry in India and to compare desi and videsi taxi rivals i.e. ola and uber. The present study uses existing literature to explore the data extracted from databases of extensive repute such as Emerald, Science Direct and Taylor and Francis amongst others. Through the study, it is found that in India, as of now, ola is racing ahead of the global leader uber on different fronts.

Keywords: Cab aggregator, India‟s Taxi Market, OLA, UBER.

* Professor, Haryana School of Business ,Guru Jambheshwar University of Science & Technology ** Research Scholar, Haryana School of Business,Guru Jambheshwar University of Science & Technology

1029 International Journal of Research in Social Sciences http://www.ijmra.us, Email: [email protected]

ISSN: 2249-2496 Impact Factor: 7.081

1. INTRODUCTION A major chunk of the population these days prefer residing in the urban areas owing to the wide range of facilities available there i.e. good job prospects, better educational infrastructure or easy accessibility to everything. There is a continuous migration of the residents from rural to semi- urban and urban areas. According to United Nations Population Fund (UNFPA), world population living in urban areas would reach around 5 billion by 2030 and this urbanization would occur majorly in Asia and Africa. Day by day, the mobility requirements of the people are changing. There are numerous modes of transportation available that support the consumers‟ mobility such as trains, buses, metros in metropolitan areas. However, longer travel time taken and the non-flexibility of these modes have reduced the demand for the same among the people and the taxis offering the desired flexibility, comfort level and privacy are considered more convenient by the consumers (Salanovaet al., 2011). Taxi industry, by providing employment opportunities to a large number of people and by providing access to convenient transportation modes, aids in boosting the urban transportation systems, in economic and mobility terms respectively (Poóet al., 2018).

Dynamic lifestyle of the consumers coupled with the rising disposable income is mainly attributing to the growth of taxi services in India. Consumers are getting attracted towards the taxi market due to the hassle free experience provided during travelling as well as other offerings like various payment options, convenience in app based bookings, GPS enabled taxis, proficient drivers etc (Business Wire, 2017).

Taxi industry in India is worth approximately ₹ 48000 crores and is expected to grow expeditiously in future (Panigrahiet al., 2018). Within the taxi market segment, there is a burgeoning demand for the online cabs, especially in metropolitan areas and tier I cities which can be asserted from the very fact that monthly taxi rides surged by 30 percent in a year i.e. from 50 million in july, 2017 to 65 million in july, 2018(Redseer, 2018). In 2018, ridesharing from the app based sources and online modes resulted in revenue amounting to US$371mn (Statista, 2018). By FY 2020, the sale of taxis is expected to contribute around 15-17 percent of passenger vehicle volume in India (The Economic Times, 2017).

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2. OBJECTIVE The objective of this paper is to gain a better understanding about the current scenario of the taxi industry in India and to compare desi andvidesi taxi rivals i.e Ola and Uber.

3.METHODOLOGY The research and review paper have been obtained from databases of extensive repute such as Science Direct, Emerald and Taylor and Francis amongst others. Relevant research papers were extracted using keywords such as Cab aggregator, India‟s Taxi Market, Ola, Uber.

4.EVOLUTION OF THE TAXI INDUSTRY Indian taxi industry is fragmented and unorganized to a great extent. The taxi market in India is divided into two markets i.e. the unorganized market and the organized market. Individual car owner and agencies operating in a single or very few cities make up the unorganized sector. The organized sector, on the other hand, consists of the owners, affliators and aggregators (Redseer Consulting, 2014).

The taxi began operating in India in the name of kaalipeeli taxis in Mumbai in 1911. These taxis functioned in the conventional manner where the customers would be required either to wait for the taxis on the streets or to go to the taxi stands in order to hire a taxi (Bhallaet al., 2018). The taxi industry has been witnessing a sea of change from the traditional taxi services to the radio cabs to the cab aggregator services. Until 2003, the Indian taxi market was largely unorganized. Customers, at that time, were having access to either prepaid taxis running under the control of state governments or the private operators, both providing inferior quality services at a high cost (Venkatesh&Easaw, 2015). Thereafter, radio cabs came into light with the introduction of Mega cabs in 2001. Radio taxi is a “taxi that operates through radio signals”. Upon receiving the call from the customer, the operator interacts with the driver through the radio signals for locating the nearby cabs (Khupse, 2017, p. 474). Radio cabs work under the fleet ownership model whereby the companies have full ownership of the cabs they are operating (Joshi & Mehta, 2015).Then, the country witnessed the coming of affliators in the market. Affliators such as savaari, taxiguide.in are connected with various car rental agencies and provide numerous deals and packages (Redseer Consulting, 2014). Followed by the affliators, aggregators entered the Indian

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taxi industry. Aggregator is defined as “a person, who owns and manages a Web-based software application, and by means of the application and a communication device, enables a potential customer to connect with persons providing service of a particular kind under the brand name or trade name of the aggregator” (Panigrahiet al., 2018, p. 31). App based cabs is relatively a new phenomenon which will exert a favourable effect on the urban transportation in the coming years (Harding et al., 2016).

4.1 OLA vs UBER In India, consumers today, want everything at just a click away with minimal effort on their part. The consumers are getting used to of ordering each and everything through the mobile apps. Owing to the consideration of this very fact by Ola and Uber resulted in huge success for both the aggregators. Increase in the usage of smartphones on one hand and decrease in the data tariff rates with the advent of Jio on the other has led to a surge in online activities that consumers indulge in (Redseer, 2018). Both Ola and Uber target these tech savvy customers in order to increase their own market share. Along with this, the level of reliability and absence of friction in the process of ride request contribute equally towards the ongoing success of the cab aggregators (Banerjee &Johari, 2019). Following China and North America, India emanated out as the third biggest cab aggregator market in 2016 thanks to the growing internet users in the country. (Muralidhar, 2016).

Ola , a trade name for ANI Technologies Pvt Ltd, is the discovery of AnkitBhati and BhavishAggarwal, both being the alumni of Indian Institute of Technology, Bombay. Ola, marked its inception way back in 2010 in Bombay and later on shifted its headquarters to Bengaluru (WHIZSKY, 2017). The company, being the first in India to offer windows, android and iPhone application, assisted in tracking out the cab, apart from offering the convenience in cab booking (Tripathi&Leepsa, 2017). Ola was the first to provide the cab aggregation services in India in 2010, thereby enjoying the first mover‟s advantage (Business World, 2016).

Uber Technologies Inc, a US based transport networking company, was found by Travis Kalanick and Garrett Camp in 2009. Uber entered the Indian territories in 2013(Kumar

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&Sentamilselvan, 2018). Followed by United States, India happens to be the largest market for uber (Surie&Koduganti, 2017).

For strengthening the position in market, Ola is in continuous process of companies‟ acquisitions. In March 2015, Ola took over Taxi For Sure for $200 million. With the motive of strengthening own mobile wallet app, ola acquired a mobile payment start-up company called Qarth in 2016 (Tripathy&Leepsa, 2017).

In the era of Startups, Ola is amplifying the Indian economy‟s growth by around 2-4 percent. And global leaders in the aggregator industry like Uber are learning the ways of expansion and creation of larger customer base with minimum amount of investment (Gulati, 2019).

4.1.1 Payment Mechanism Passengers are free to make the payment for the Ola cab ride via ola money, debit and credit cards, ola credit and through cash (Uthira, 2018). Uber, on the other hand, globally does not accept cash payments (Business Today, 2015). However, the company noted that Indian customers are more satisfied by making the payment through cash. Therefore, in order to tap the Indian market effectively, uber initiated option for cash payments. Uber accept trip payments through paytm , credit cards, debit cards and cash (Uthira, 2018). 4.1.2 Business Model

Cab booking via mobile application

Customer Downloading app Selecting Payment on smartphones options

Acceptance of Driver receives Requesting ride

Request signal via app accepted

Cab details sent Invoice upon ride Two sided to customer completion feedback

Source: Adapted from paper titled “Measuring the Performance of Taxi Aggregator Service Supply Chain”, SAMVAD:SIBM Pune Research Journal.

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The process of cab booking with both the aggregators is basically the same, the only difference lies in the add on values provided to the users. Customers have the access to pre-booking option in ola, which is not the case with uber, where booking is done on availability basis (Sarvepalli&Prakash, 2016). Cab booking in ola and uber involves usage of the smartphone application by the passengers for seeking a ride, after which passenger‟s location is sent to the drivers in proximity. When the request is being accepted by the driver, the customer can have a look at the cab‟s real-time location and how much time the cab would take to arrive (Rayleet al., 2016) These transportation networking companies are earning revenue by means of pay for performance model (Uthira, 2018). The drivers here follow the principle that the more the drivers indulge in the work, the more the pay as a result and greater would be the incentives (Kashyap& Bhatia, 2018).

4.1.3 Double Sided Advantages Ola and uber does not differ from each other in terms of benefits being provided. From the aggregator perspective, one of the biggest benefits offered by the ride hailing companies is that, in the process of additional procuring of assets, no sunk cost are incurred. Also, aggregator had to borne the app development cost only. Along with reduction in cost, ola and uber helps in effective utilization of the scarce resources by allowing cars, which otherwise would have remained idle in a non-digitised economy, to be used for providing taxi rides in case the demand for the same arises. Moreover, these companies provide ample job opportunities due to the easy entry process. On a similar note, Gulati (2019) pointed out that ola have received enormous rate of growth and as a result has created number of employments in India. On the other side, from the viewpoint of a consumer, trust and safety issue has always been a matter of concern. This concern has been overcome by both the aggregators by fully disclosing all the information relating to fares, drivers and their background and a trust is thereby established when nothing remains hidden from the customer (Dasgupta, 2016). Ola, launched Ola pink, a cab driven by the women drivers specially designed specifically for women traveller considering the safety issue. (Panigrahiet al., 2018).

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4.1.4 Drivers Incentives In case of ola as well as uber, there is nothing like fixed wages or fixed working hours for the drivers but there is a fixed percentage of incentives given on successful completion of specified trips. Weekly cash based incentives value offered varies between ₹ 1000 and 3000 (Kashyap&Bhatia, 2018). Both the cab aggregators have adopted a similar way to incentivize the drivers. Ola undertook a program named “Ola Pragati” under which help is being provided to the drivers in getting the car loans from State Bank of India and drive for the company. Best performing drivers are named as Ola Stars and are in addition rewarded with benefits such as scholarship for their children, fuel subsidy and cashback offers. On a similar note, Uber undertook “Uber Dost”initiative (The Economic Times, 2016). Apart from that, Uber continuously organise loan fairs in order to attract new drivers towards the company and award the drivers with health benefits, educational subsidies and free of cost insurances (Shuklaet al., 2017).

4.1.5 Coverage The desi company, ola, is the clear market leader in India despite having stiff competition from the global leader Uber. At present, Ola is carrying out its operation in 110 cities whereas its foreign competitor, uber has been successful in expanding its reach in 26 cities only (QUARTZ INDIA, 2018). Ola focus has been on tier II and tier III cities along with metro cities while uber has always concentrated on the growing markets (Business World, 2016).

4.1.6 Price Wars The transparency in price fixation is missing in both the transport networking companies. At times, both resorts to predatory price mechanism and come with amazing price offers to attract a large number of customers whereas at times, like during the peak hours such as bad weather conditions or special events where the demand for cabs eventually rises, both ola and uber follows a surge pricing model and charge higher price than is usually charged (Moon, 2015; UNCTAD, 2017).Ola and uber differed completely in the pricing strategy. Uber service offering in India includes Uber Black, a large sized car providing the experience of luxury travel in Audi, BMW at premium prices, UberX offering the services through mid-size sedans like Swift desire and Etios at an expensive fare and uberGo, a small sized car giving the rides at lowest prices

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(Business Today, 2015). In a similar manner, ola provide rides through ola luxury, ola sedan, olasuv, ola mini and ola micro (Maheshwari, 2017). Ola base ride fare for ola mini and sedan vary from ₹ 80 to 100.Ola sedan services are comparatively cheaper than the Uber black luxurious offerings (Maheshwari, 2017). With the sole purpose of beating Uber‟s cheapest cab ride UberGo , Ola introduced Ola micro, a low cost ride charging ₹ 6 per km as the ride fare (WHIZSKY, 2017).

4.1.7 Investments From the day ola commenced its business in India, it has got the fund support from the biggest investors in the market. Ola got the series A funding from Tiger global and series B funding from Matrix Partners and Tiger Global (Business Today, 2015). Apart from the current investors, ola got the back of Steadview capital, Softbank and DTS global in the third, fourth and fifth series (WHIZSKY, 2017). Uber, also is funded by many investors. Recently, Softbank, also invested in uber and is presently the largest shareholder of uber (Business Standard, 2018).

4.1.8 Services Offered For the purpose of commuting within the city, Ola offers numerous fleet variants such as ola bike, ola cabs in micro, mini, prime sedan, prime suv and luxury types and ola share with the motive of satisfying different kind of customers. Besides providing in city services, ola also offer outstation and rental services. Ola introduced another variant, ola auto, few years back in October, 2014. Diversifying itself, ola entered the food delivery segment with Ola Cafe app, wherein the buyer makes the order through the app and delivery is made by ola cabs swiftly (Business Today, 2015). Similarly, Uber services vary from UberX, Uber XL, Uber Pop, Uber Black, Uber SUV to Uberpool. In addition to the ridehailing services, uber also give courier delivery facilities through UberRush and food delivery services via UberEats (Basu, 2017). Uber as well as ola treats the safety of customers on a priority basis and therefore came out with an in- app „SOS‟ button (Business Today, 2015).

5. CONCLUSION Indian taxi industry is flourishing at a fast pace. Taxis are getting a lot of traction from the customers. Moreover, the public transit users and the private car users are also slowly and

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steadily shifting towards the taxis owing to the range of benefits offered to the travellers. Within the taxi industry segment, the cab aggregators are doing exceptionally well. Presently, there are two major players in the aggregator market i.e. ola and uber. A comparison of the home based aggregator and foreign based aggregator revealed that the home based aggregator,ola has a wider reach and offers better prices to the customers. Ola is backed by some of the biggest investors in the market and offer a wide range of services such as ola rentals and ola outstation. As of now, ola is a clear cut leader in the Indian market. However, in order to maintain the leadership in future, ola need to constantly upgrade in terms of technology, service providing, otherwise that time is not far away when ola will be surpassed by uber.

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Dasgupta, L. (2016). Costly Ride?A Consumer Perspective on the Anti-Competitive Practices of App-Based Cab „Aggregators‟ in India. Journal of National Law University Delhi , 4(1), 61-77.

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QUARTZ INDIA (2018). As Uber sputters, Ola is really stepping on the gas in India. Available at https://qz.com/india/1200878/with-uber-in-crisis-ola-zooms-ahead-in- indias -taxi- wars/.Retrieved on March 17, 2019.

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And global leaders in the aggregator industry like Uber are learning the ways of expansion and creation of larger customer base with minimum amount of investment (Gulati, 2019). 4.1.1 Payment Mechanism Passengers are free to make the payment for the Ola cab ride via ola money, debit and credit cards, ola credit and through cash (Uthira, 2018).
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Carissa: "I joined Uber Eats 2 years ago as a Partner Success Manager in our Enterprise Sales team and I'm now leading a team of 8 Account Managers on our Mid-Market Sales team. My role is to set the strategy and coach the team to better support our Restaurant Partners. Ultimately, we are responsible for helping the restaurants on our platform achieve their business goals with Uber, which ...
Cab Aggregators in India: a Case Study of Ola and Uber [PDF]
Ola was the first to provide the cab aggregation services in India in 2010, thereby enjoying the first mover‟s advantage (Business World, 2016). Uber Technologies Inc, a US based transport networking company, was found by Travis Kalanick and Garrett Camp in 2009. Uber entered the Indian territories in 2013 (Kumar.