Ola Cabs is an online taxi aggregator service operating in India. It was founded in 2010 and has expanded to operate in over 100 cities. Ola partners with taxi and auto owners, providing them with a technology platform for booking rides. It uses mobile apps and websites to connect passengers with drivers and has grown significantly, completing over 6 lakh rides per day. However, it faces challenges from rising competition from companies like Uber, high driver acquisition costs, ensuring passenger safety, and complying with regulations. Ola continues to invest heavily in technology and expand its service offerings and geographic reach to maintain its leadership position in the Indian market.

1. Kamal Dhingra 1304-008
Online Taxi Aggregator:
OLA cabs

2. 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

3. 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

4. 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)

5. Introduction
Ola cabsTechnology
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
Valueproposition
Passengers
Drivers

6. 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

7. Ps
Product
Price
Place
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

8. 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

9. 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

10. 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
ThreatOpportuni
ty

11. 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

12. Funding
April
2012: $5
M
Novemb
er 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

13. 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

14. 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

15. 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)

16. 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

17. 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

18. 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

19. Thank you