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It was founded on 3 December 2010 by Anshul Gupta
(currently CEO) and Ankit Bhati
Ola started as an online cab aggregator in Mumbai, now
based out of Bangalore and is among the fastest
growing businesses in India
Ola cabs has expanded to a network of more than
200,000 cars across 85 cities. In November 2014
Ola expanded to incorporate autos in Bengaluru. Ola
Auto expanded to other cities
like Delhi, Pune and Chennai.
Meru Cabs was one of the first companies to launch metered
"Radio cabs" in India under its brand "Meru."
Meru Cabs has grown exponentially of fleet size and geographical
presence. Customers benefit from a relaxed commute in a well
equipped, air-conditioned cab.
Meru Cabs launched in Mumbai with 45 cabs in 2007; started
operations in 2008 at Delhi, Hyderabad & Bengaluru. It extended
its services Jaipur & Ahmedabad in 2013 and Chennai by March
Serves more than 1.8 million passengers its also 3rd largest "Radio
Taxi" company in the world
• First mover advantage as a taxi aggregator in India
• Acquisition of Taxi For Sure made it No. 1 in India
• High awareness due to aggressive TV, online and print
• Huge customer base & due to network effect it is increasing
• Rapid expansion and online application
• Multiple rounds of VC investments have made the brand
• Drivers are the face of the company and hence their
misbehavior directly affects the brand image
• While the demand is huge, amount of cash burning is huge
and monetization is very difficult
• Unorganized market is huge (~90%) and hence potential is high
• Increasing internet penetration & smart phone users
• Rising disposable income
• Shifting of consumers towards convenience creates huge
• Acquisition of smaller players
• Rising competition
• Uber has deep pocket and hence can burn cash heavily
• Presence of many national players
• Absence of clear government regulations in developing
• Future is unclear due to lack of regulations and Customer
loyalty is less in this industry
Downfall of Meru
Meru cabs was started in Mumbai on April 2007.
Expansion of services to Delhi, Bangalore, Hyderabad.
Post the Entry of Ola in 2010.
• Meru owns its cabs and the
drivers are franchisee who rent the
car at a certain rate from the
• Meru was the first to introduce
• Meru cabs booking could be done
• Last Minute cab cancellations had
become a routine for Meru
• Underestimated OLA and was
doing a monopoly pricing for Cabs
industry which hit them badly
when OLA did its repricing
• Ola Cabs aggregates cars from
small tour individuals. The drivers
are on a fixed salary+ Incentives.
• Ola has its own technology and
first to introduce a mobile app.
• Last minute cancellation was
almost negligible as Ola made it a
policy of not saying ‘NO” to
• Ola acquired “Taxi for sure” and
expanded its business horizon.
• Advertising strategy was very
Innovative concepts like Happiness
Strategies used by OLA
Only App service.
Partnership with private taxi owners, hence low
Variable benefits for drivers of OLA.
Works with leading financial institutions that provide
loans to help prospective drivers buy their cars outright.
Offers training to ensure drivers are equipped to deliver a
quality and safe experience for passengers.
Offers three different tiers of car service to suit different
budgets: luxury sedan models, mid-range, and its Ola
Variety of payment options for customers- cash and OLA
Even pricing while travelling at night.
Included autos under OLA
Free rides and discount coupons.
Provided feedback forms to customers.
Ola wallets to be used on platforms like Oyo Rooms, Lenskart
In November 2014 report SoftBank — mapped out the market share of India’s top
organised taxi companies.
Providing training to drivers in skilled driving, traffic rules,
Increasing number of App languages to provide better flexibility
to customers/drivers and to ultimately increase the app usage
Showing the route being taken on a real time basis, reducing app
lag times and increasing GPS precision, for an enhanced customer
Olacabs.com, launched a ‘pink cabs’ service, driven by women
drivers and which will only allow female passengers to board
them. Complying with Government regulations, Ola also launched
an emergency contact.
Ola currently operates across 67 cities, and consumers have
access to over 100,000 vehicles via the app. With its new
acquisition, Ola’s nationwide presence will strengthen via
TaxiForSure’s network of 15,000 drivers across 47 cities.
Lack of skilled drivers
Recovery to Potential obstacles of OLA
• Associating with big events
happening around metros.
• Providing free Ola money and
cashbacks to promote usage of
• Offers a wide variety of cab
options including a Nano and an
Auto option to appeal to various
• Providing training to drivers in
skilled driving, traffic rules,
• Encouraging new drivers (who
don't have a car), by arranging
low interest rates with financiers