Ola Cabs is an Indian transportation network that faced a critical crisis due to security flaws in its app and customer privacy breaches, resulting in negative reviews and backlash over surge pricing and driver treatment. The company has been criticized for reducing driver incentives and treating drivers as contractors rather than employees, which has affected their income. In response to the criticisms, Ola's co-founder claims the company aims to create new opportunities but avoids using the term 'jobs.'

1. CRITICAL SITUATION IN AN
ORGANIZATION AND IT´S
MANAGERIAL SOLUTION
NAME: C. Balasubramanian
REGISTER NO.: RA1952001020039
SUBJECT: Managerial skills
COURSE & SECTION: MBA – “A”

2. INTRODUCTION
 Ola Cabs (stylised as OLΛ), is an Indian transportation network company (TNC)
offering services that include peer-to-peer ridesharing, ride service hailing, taxi
and food delivery.
 The company is based in Bengaluru, Karnataka, India and was developed by ANI
Technologies Pvt. Ltd. As of May 2019, Ola was valued at about $6.2 billion.
 A variety of venture capitalists including Softbank have large stakes in the
company.
 Ola Cabs was founded on 3 December 2010 as an online cab aggregator in
Mumbai, and is now based in Bangalore.
 As of 2018, the company has expanded to a network of more than 10,00,000
vehicles across 169 cities. In November 2014, Ola diversified to incorporate auto
rickshaws on a trial basis in Bengaluru.
 After the trial phase, Ola Auto expanded to other cities like Delhi, Pune, Chennai
and Hyderabad starting in December 2014.

3. crisis
 Ola Cabs technology came under criticism regarding the security of its mobile app. The
API calls could be replayed to top up its wallet.
 In August 2016, a privacy breach occurred when customers' details such as names,
phone numbers and addresses, in Bengaluru, were received as SMS messages by an
individual in Chennai.
 Although these unanticipated messages were reported to Ola, the company ignored
them, even under the threat of being reported to the TRAI.
 The refund policy of Ola Cabs has been criticised because of charging errors caused by
technical glitches in their system.
 As of December 2018, there were 190 negative reviews on Ola Cabs posted on
TripAdvisor by dissatisfied customers. Surge pricing has been an issue with customers,
as Ola is said to initially eliminate competition by lowering prices, and then hiking up
prices through what it calls surge pricing.
 The fact that the same ride can cost different amounts depending on the time, day and
the profiles, history and rating of the driver as well as passenger has also incurred much
customer wrath.
 The issue was reportedly fixed three weeks later after receiving considerable media
coverage and social media attention.

4. criticism
 Ola from January 2017 has been highly criticised for continuously
dropping the driver incentives which in turn is affecting driver-partner's
monthly income.
 Most nowadays fail to cope up with their monthly EMIs and other dues.
 Daily income of cab drivers is now equal to auto drivers running in the
city after deducting all dues.
 Charges comprise:
 Base fare (fixed amount)
 Distance fare (charged per kilometre)
 Ride time fare (charged per time taken to travel)
 Peak pricing (direct ratio depending on demand for cabs)
 GST (5%)
 Toll charges (toll collection if crossing a toll junction)

6. solution
Ola and Uber have also been criticised due to their practice of
baiting drivers and passengers, initially with discounts and
bonuses, and then hiking up fares without passing the proceeds to
drivers.
 Their practice of taking large signing up amounts from drivers
and not considering them employees has also been criticised.
Both companies contractually treat drivers as "contractors" thus
excusing themselves from any legal obligations.
In an interview, Pranay Jivrajka, a co-founder of OLA, claimed
that the company will be creating 50 lakh new "opportunities" in
the next five years. He was, however, careful not use the word
jobs for these opportunities.
He added that it was not just about jobs but creating an
ecosystem.

7. reference
 Technologies, Olacabs – ANI
 Mandal, Suchayan
 Russell, Jon