Kamal Dhingra 1304-008

Online Taxi Aggregator:

OLA cabs

Macro Factor

Country India

1 Population 1.27 billion (Second most populous country)

2 GDP growth rate 5.8% for last 2 decades, expected to be 7% in 2015-16

3 Transport sector Caters to 1.1 billion and contribute 5.5 % to national GDP

4 Registered taxis 2.3 million

National capital Delhi

1 Population 16.78 million one of the most densely populated city in the world

2 Population change 21.20 % increase from 2001

3 Area 1483 Sq. KM

4 Registered taxis 2.3 million

5 Transportation hot spot International airport: 1, domestic airport: 1, major Railway stations: 5 , Inter-state bus

terminal: 3, Number of tourist spot : Multiple

6 Drivers for growth Evolvement of NCR region, Growing number of call centre, BPO, IT, ITES, Manufacturing

industries

8 Public transport option Buses, Metro, Auto Rickshaw, Taxis, Cycle Rickshaw

9 Roads in Delhi 33198 lane KM

10 No. of registered cars 2.63 million (Cabs: 53739)

Common problem:

Insufficient public transport system,

Parking space crunch, Reservation,

Price, Turn around time

Population to cab

ratio : 310

Industry Analysis

Taxi Market $9 Billion

Organized Market

$0.5 Billion

Owners

$1.5 to 2 million

Easy cabs Meru

Affliators

$1 million

Savaari Taxi Guide.in

Aggregators

$2.5 million

OLA Uber

Unorganized Market

$ 8.5 Billion

Growth YoY Taxi industry : 15-20% Aggregators: 30-40%

Drivers of growth • Price

competitiveness • Customer

convenience • Entry of multiple

player • Investment

backup

Introduction S.N. Parameters

1 Name OLA cabs (aggregator)

2 Founders Ankit Bhati, Bhavish Agarwal

3 How it started Bhavish had a bad personal experience with a cab which led him to realize

potential in the industry.

4 Date of Incorporation December 3, 2010

5 Business model OLA partners with Taxi, auto owners, provides modern technology and

processes for booking, dispatch etc. without holding any inventory

6 Revenue Model Runs on a pay-for-performance model. Charges a commission in whatever

sales they make.

7 Service Provided Hassle-free, reliable and technology-efficient: Car rental, Auto rental, Ola

Café

8 No. of Taxis Approximately 150000

9 Technology Website, Mobile Application, Analytics, Servers etc.

10 Operational in 100 cities, Plans to expand in 200 cities by the end of 2015

11 Financial evaluation $ 2.5 to 4.5 billion (October 2014)

Introduction

Ola cabs Technology GPS, Smartphone apps,

Heat map, servers

Suppliers

Taxi drivers

Customers Upper middle class, Business

class, Tech savvy

One tap to ride

Reliable pickup

Ride feedback

Cashless

Flexibility to drive

Time advantage

Higher income

Various benefits

Val

ue

pro

po

siti

on

Passengers

Drivers

Configuration of Service

App based Taxi

service

Information:

Consultation:

Order taking

Hospitality:

Safekeeping:

Exceptions

Billing:

Payment:

Website, Blogs, Mobile App, text messages

Customized offer using Analytics, History of travel

Cab booking through online, app, call centre

Driver’s behavior

Safety button on app, safekeeping of belongings

Clear rates for different category of car

Ola money, mobile wallet, Credit, debit card, cash,

Helpline, blogs, social media help for exception handling

Ps

Product

Price

Place

Cost structure

Products: Taxi services, Auto Services OLA Café

Challenges: Female passengers security, Differentiation

Solution: Female only cab, Panic button, Electric car

Solution: Competitive pricing, consolidation, economies of scale

Challenges: Price war between different players

Place: Mobile App, call Centre, web,

Challenges: Different Interfaces, Technology dependency

Solution: Investment in technology

Price

Ps

Promotion

Process

Promotions: Promo codes by referral, Various discounts, Blogs, Rating optimization in app stores, digital media promotions, word of mouth

Challenges: Customer response against existing promotions

Solution: Analytical approach

Process: App Based booking, Reporting time, Payment Refund

Challenges: Technical Glitches, People non-compliance

Solution: Training, Investment in technology

Ps

People

Physical. E.

People: Taxi drivers, Call center staff

Challenges: Security, Inappropriate behavior,

Solution: Stringent Background check, audits, Training

Physical Evidence/ environment: Condition of the car, Inside the taxi environment

Challenges: unhygienic condition, Bad condition of the car

Solution: Audits, Trainings, incentives

SWOT

• Rising competition

• Uber has deep pocket

• Getting overcrowded

• Absence of clear government regulations

• Huge unorganized market

• Increasing internet penetration & smart phone users

• Rising disposable income

• Shifting of consumers towards convenience

• Acquisition of smaller players

• Misbehavior of the drivers affects the brand image

• Huge demand leads to cash burning

• Loyalty of the drivers

• First mover advantage

• Acquisition of Taxi For Sure

• Huge supply side

• Huge customer base & network effect

• Rapid expansion and online application

• Strong backup by VC investments

Strength Weakness

Threat Opportunity

Technology

Ola Cabs

• Heat Mapping technologies to assess demands • God View- Real time aerial view of the movement of the car • Data Analytics : how many times app is opened, probability of predicting popular

destinations, analyzing demand prediction accuracy to update the algorithm • Dynamic price algorithm • Web servers • GPS technology • Various Softwares

Funding

April 2012: $5

M

November 2013: $20 M

October 2014:

$210 M

March 2015: $120

M July 2014: $41.5 M

April 2015:

$400 M

July, 2015:

$500 M

Tiger global Management

Matrix Partners, Tiger Global

Existing Investors Tiger global, matrix,

sequdia Capital

DST global, GIC, Softbank, Tiger Global

Existing Investors

Ownership OLA acquired TaxiFor Sure for $200 m

Expands cab aggregation services in about 200 smaller towns and cities

Experimenting with logistics services and has introduced delivery of meals from restaurants

Rivals

Direct

• App Based taxi services:

• Radio Taxi services

• Unorganized taxi services

• Car lease services

Indirect

• Public transport

• Self owned vehicle by consumer

• Car-pooling

Unorthodox

• Traffic on the road

• Technology

• Driverless, Computer assisted car

• Advancement of communication technology

Raises Alarm for:

Unorganized Taxi services

Unorganized Auto services

Automobile manufacturer

Comparative Analysis S. No. Parameter Ola cab Uber cab

1 Valuation $ 3.5 billion $ 50 billion

2 History 2010 2007

3 Presence 100+ cities in India, No plan to go overseas

300+ cities and 60 countries, 11 cities in India

4 Investors Softbank, tiger global Google, Goldman sachs

5 Supply 1.5 lakh 50K

6 Price Min. 100 to 200, Rs. 8 to 20 Km Taxi for sure is being pitched for lower prices

Min Rs. 60 to 125, 7/ km to 12/ km

7 Promotion App based, word of mouth, internet

App based, word of mouth, internet

8 Mode of booking 95 to 99% through app App only

9 No. of rides/ day Approx. 6 lakhs 2.5 lakhs

10. Acquisition Taxi for sure $200 million

Meru (being discussed)

Quality of Service Drivers and Customers both share the rating

Customers Drivers

S. No. Challenges Ownership Solution

1 Booking: Difficulty in booking, Last minute cancellation

Ola technical, supplier Loyalty, incentives

2 Availability Ola analytics, suppliers Investment on Technology

3 Moments of truth Supplier, customer Training, educating the customer

4 Post encounter Ola, customer, suppliers Smooth transaction, fair feedback

Challenges S. N. Challenges Solution/ proposed solution

1 Technology (Location tracking) More investment in technology

2 Data usage of drivers, Battery life of handset

Technology, incentives,

3 Ride later: Process Training, loyalty, incentives

4 Background checking of drivers, non-regulated drivers

Strict verification processes, Zero tolerance

5 Data privacy of customers: history of travel, other personal information

Strengthening of personal data security

6 Tough Competition Economy of scale, Diversification, consolidation

7 Pressure from investors Creation of customer base, loyalty programs

8 Law-compliance: using mobile while driving

Training, Technology

9 Fuel compliance Offering heavy discount to registered car owners to go for CNG, collaborating with car manufacturer, banks

Way forward

Training, Incentive, offers and facilities to drivers

Data security

Car leasing, Bus aggregations

New services Ola Cafe

Delivery of e-commerce goods

Venture into e-commerce arena

Supply and cost are two very big restraints hence Consolidation have started with merger of Ola and TFS.

CRM programs

Corporate segments

Thank you