OLA CABS – RIDING ON HIGH

Presentation by

Surya Kumar

INTRODUCTION Abstract:

December ’14 issue: “Uber’s driver a assaulted a female passenger”

This lead to the formation of new regulations (Licensed radio taxi)

Consequence: Hinder in the growth of OLA Alteration in the existing business model

BACKGROUND Ola is a cab aggregator company started by

IIT alumni Bhavish Agarwal and Ankit Bhati at 2011.

They were provided with angel funds about 30 million dollars by 2012 and 2013

All because of the OLA Business model.

EXISTING CAB MARKET Issues:

Less operation Low customer service Low technology Fleecing – Taking long routes/ High charge Non availability of services Long waiting (snail pace) Delayed process

OLA cabs identified these issues and used technology for overcoming these issues.

EXISTING CAB MARKET -CONTD Indian market:

12 passenger/1000 people Peak cab drivers/business in Mumbai and

kolkatta Indian market worth = 6 Billion US dollars Overall only 5% is organized sectors

OLA STRATEGYAggregator Model:

More attractive for drivers as well as customers.

Internet company

Online Payment

Smart Phone

BUSINESS MODELS1. Booking

1. Call customer care2. Visit website3. App booking

2. Cab delivery

3. Payment: Cards, Internet banking, OLA money

Cust Request

Idle cab

s

Only pickup locatio

n to cabs

Acceptance

Further

details

DRIVER ENTREPRENEURSHIP Asset Light model:

Not owning the cabs hence there is no cost involved.

Adding operators to the cab

Drivers has to give 10 to 20% commission to OLA and has to take maintenance and tax operation costs.

Drivers are considered to be the main asset hence more education and relationship is maintained.

OPERATION Fleet Optimization

Customer allotment Operation of customer waiting time

Surcharge Dynamic Pricing (Based on time) Peak Hours: 2X,3X or Increase of 50Rs

AMEYO Software solutions CIM : CRM+SMS+Cust query

Technology and Analytics Complete back end operation on technology. Analytics to manage demand and supply Traffic, road condition and utilizing idle time

BRANDING AND PROMOTION More promotions are made and the brand

image is created. Learning is made from the Cust feedbacks SERVQUAL is maintained by quality audits. 40% Promotions are made from the Voice of

share. (Referrals)

OLA CABS 2.0 Uber Issue on Delhi : Driver assaulted a

female Transformation of Meru, TFS. OLA’s transformation Ideas. Existing Pressure and Fear of OLA. Competitors

Meru, Easy cabs, Mega, TFS, Uber, Fast Track and Ride sharing.

Future of OLA Cab Drivers OLA Customers