This presentation is going to tell you all about the Indian ride sharing business,rivals of Ola and Ola's first step towards global operation and their strategy to attract driver and passenger in India and Australia and their financial performance from 2014 to expected profit till 2021.

1. Ola Spreads Wings in Australia to
build Profit base , take on Uber in
India
Published in Business Standard , 13th March,2018
Presented By :- Team Udaan

2. Content
• Industry Overview : India
• Market share
• Introduction to Ola
• Business model
• Past Financial performance
• Reasons for Financial Crisis

3. Content
• Necessary Remedies to overcome losses
• Strategic Decisions
• About the News
• Relevance of the news
• Why Australia ?
• Multimedia
• Industry overview: Australia

4. Content
• SWOT analysis
• SPACE Matrix
• Expected financial performance
• Team analysis
• Conclusion
• Bibliography
• Team efforts

5. Industry Overview
• Industry rivals : Uber, Jugnoo, Meru, Ixigo cabs
• India taxi market valued at $6.4 billion in 2016
• Industry expected to grow at 13.7% CAGR
• Majorly targeting Tier-I & Tier-II Cities
• Shift in mindset & Disposable Income
• Direct Contribution to “mission electric program”

6. Market share of Taxi Industry

7. INTRODUCTION
• Industry type :Transportation Technology
• Founder & CEO : Bhavish Aggarwal
• Headquarters : Bangalore, Karnataka
• Loss : 2,313.66 Crore
• Area served : India, Australia
• Net worth : 3.5billion
• Acquisition : Ola Fleet Technology,
Food Panda ,Taxiforsure

9. 0
500
1000
1500
2000
2500
2014-15 2015-16 2016-17 2017-18
Loss in crores
Loss in crores754
1760
2323.66
769.11
Past Financial performance

10. Reasons for facing losses
• Excessively spending on discounting fair rides
• Ola gave competitive commission to driver’s
• Increase in sales & advertisement by fourfold
• Failed Strategic investment in Taxi for sure
• Losses on account of Employees expenses
• Banks pull back car loans to Ola

11. How they overcome losses
• Strategic alliances with car maker M&M
• Major funding from group of investors;
Investor’s Timeline Amount of
investment
% Holding
in Board
Softbank 2016,2017 $1 billion,
$250millon
30%
Tiger Global
Management 2017 $600 million 15%
Tencent 2017 $1.1 billion, $800
million(1.8b)
Not
Available

12. Strategic decisions
• Ola Acquired transportation app Ridlr
• Another strategic investment in food panda
• Tapping potential and unexplored market

13. About the News
• Ola’s first off-shore investment
• Backed by strong financial global investors
• Ola hired local support team
• Focusing on signing more Driver contract
• Penetrating drivers by charging low
commission
• Ola exploring relevant geographic market

14. Relevance of the news
• Market leader in terms of presence
• Ola had huge amount of losses in India
• Necessary steps are taken to overcome
• Competition in both the country

15. Why Australia ?
• Fastest growing economy
• Existing countries are already saturated
• Higher ranking in ease of doing business index
• Comparatively more profitable as compared to India

16. Strategies for Australia
• Emphasizing on gaining customers
• Priority to sign more drivers
• Affordable Pricing strategy
• Online car-pooling platform

17. Multimedia

18. Industry Overview: Australia
• Industry rival’s :Uber, Gocatch, Taxify
• Australian rides sharing segment amounted to
US$447m in 2018
• Industry expected to grow by 3.8% CAGR till
2022

19. SWOT Analysis
Strength
• Product Line
• Strong Brand Name
• Low Investment
• Dynamic Pricing
Weakness
• No Control Over Drivers
• Weak Support system(I)
• Dependence on
internet(I)
• Market Segment(I)

20. SWOT Analysis
Opportunities
• Wider Market
• Increasing Internet
Penetration
• Poor Public Transport
• High Disposable
Income
Threat
• Industry Rivalry
• Unclear Government
Regulations
• Customer loyalty

21. Space Matrix
Strategic Position and Action Evaluation
(SPACE) analysis
• Framework to develop and review a company’s
strategy.
• Each quadrant suggests a different type or a
nature of a strategy:
Aggressive
Conservative
Defensive
Competitive

22. Financial strength
• Working capital
• Investor base
Competitive advantage
• Market share
• Cost level
• Product range
Environment stability
• Political stability
• Technology
• Tax rates
Industry Attractiveness
• Growth potential
• Entry barriers
• Customer power
• Substitutes
Space matrix

23. Space Matrix

24. Expected financial Performance
0
1000
2000
3000
4000
5000
6000
7000
2018-19 2019-20 2020-21
Profit/loss
Profit/loss in
crores
1,170.49
3,326.99
6,423.33
From 2018 to 2021

25. Team Analysis
• Ola’s first step towards Global operation’s
• Market leader VS New Entrant
• Supported by Global and local investors
• Ola had built resilience
• Ola will become profitable in FY’2018

27. Bibliography
• Alnoor Peermohamed
Business Standard, March 12,2018, 12-45 IST
http://www.business-standard.com/article/companies/ola-spreads-wings-in-
australia-to-build-profit-base-take-on-uber-in-india-118031200349_1.html
• Alnoor Peermohamed
Business Standard, Nov 22,2017 08-47 IST
http://www.business-standard.com/article/companies/ola-projected-to-turn-
profitable-by-fy19-rake-in-1-bn-by-2021-117112200067_1.html
• Press Trust of India
Business Standard, April 12, 2018 10-20 IST
http://www.business-standard.com/article/pti-stories/ola-
expands-in-australia-begins-service-in-melbourne-
118041200226_1.html

28. Team Effort