EXECUTIVE SUMMERY

Taxi market in India is growing rapidly with a lot of new entrants who run private taxi
companies apart from the existing public taxi market. The public taxi market consists of taxis
that are too old with very little comfort and safety, while on the other hand the taxis in the private
taxi market are modern along with features like GPS, more comfort and safety.

Thus, to study the impact of the private taxi companies on the public taxi market, we have
carried out this research by using specific variables that will explain the effect of the private taxi
market on the public taxi market. These variables have been taken into account considering the
usual factors that a customer might think of while thinking hiring a taxi.

So according to the variables considered, a theoretical framework was developed containing the
dependent and independent variables along with the null and alternate hypotheses that had to be
proved true or false depending upon the data collection.

A questionnaire was prepared with the help of which two sets of data were collected of the
public taxi market and the private taxi market through a survey filled by people chose at random
using the random probabilistic sampling technique. The data collected was analyzed using the
SPSS software and Minitab software for which a set of analysis techniques were applied and the
data was interpreted which helped in proving the corresponding null or alternate hypotheses true
as per the requirement of the research.
 INTRODUCTION

Managing and growing a successful startup is ripe with challenges from all sides – from keeping
employees and investors happy, to raising money and constantly improving your bottom line.Not
every start-up is bound for success.

In actuality, getting money from an investor is no easy feat, but when you know what states are
the most investor friendly, what investors are looking for and how to build a powerful team
around your organization -- then you are much more likely to find start-up success.OlaCabs,
more popularly known as Ola, is just like any other marketplaces online, but more specifically
into providing Taxi services. Ola, which started as an online cab aggregator in Mumbai, now
resides in the Silicon Valley of India a.k.a. Bangalore, and is also known to be one of the fastest
growing businesses in India, out-beating its competitors Uber & Meru. Coming back to the man
behind Ola; simple yet charming Bhavish, with the success of his prodigy has certainly become
the talk of the town. But even after becoming a millionaire, he still prefers to not buy a car and
take a cab (to set an example, we presume), certainly doesn’t goes down well with his wife. He
believes that, such is a small price that every entrepreneur has to pay.
Taxi Services in India:
The middle class population in India rose from 15 million in 1991 to160 million in 2011. This
segment with its increasing disposable incomestarted demanding and has been willing to pay for
better servicesacross sectors including private and public transportation. Rapideconomicgrowth
coupled with huge infrastructure development,rigorous effort from Ministry of Tourism to
project India as traveldestination and emergence of Business Process Outsourcing (BPO)industry
has given a huge push to the car rental industry in India. Till2003, the point-to-point taxi market
in India’s big metropolitan citieswas completely unorganized.

It was served either by unorganized,inconsistent and somewhat expensive private operators or by

stategovernment controlled prepaid taxis offering a standardized but lowquality service. But in
2003 the Radio cabs business emerged as oneof the fastest growing businesses in the Indian
transportation sectorwith Delhi-based Mega Corp setting the wheels rolling under the MegaCabs
brand in cities such as Bangalore, Mumbai, Calcutta, Chandigarh,Ludhiana and Amritsar. Today,
15,000 plus professionalized air-conditionedtaxis are available to customers in 6 big cities in a
largelyreliable, convenient and affordable manner (Rahman &Anand, 2014).
Indian Taxi Market:
The taxi market scenario in India is hugely fragmented. The taxi market in India is divided into
two major segments which are the organized and unorganized markets. The unorganized market
has a market value of $8.5 billion and the organized market holds a market value of almost $500
million. The organized sector is the recently emerged segment in the market scenario. It is
further classified into owners, affiliators and aggregators. The owned vehicle segment is
inclusive of the pure car rentall companies like meru. The affliators are accomplished with
multiple car rental agencies and they are known to provide different tour packages or deals.
Whereas the aggregator are the newest phenomenon which are driven by start ups like ola cabs.

Market Share of IndianTaxi Market

7%

23%

60%

10%

unorganized affiliators aggregators owners

Due to the increse in competiton and a steep rise in public demand due to the quality and comfort of
service provided by these taxi services there has been an increase in the investment activity for the
same.In the interim, big cash is making this fight worth battling for. As indicated by the Association of
Radio Taxi India, the taxi business in the nation is developing at 20 to 25 for each penny a year. The
sorted out taxi area represents only four to five for every penny of the business and sums $800 million. It
is relied upon to develop to $7 billion by 2020.The central government, vide its budget 2015-16 has now
clearly defined the term aggregator: “Aggregator means a person, who owns and manages a Web-based
software application, and by means of the application and a communication device, enables a potential
customer to connect with persons providing service of a particular kind under the brand name or trade
name of the aggregator;” Indian taxi market is assessed to be around $8 billion (Rs 48,000 crore) at this
moment, out of which just 5% is being overseen under sorted out area; which implies that the market is
completely open right at this point. It is being anticipated that in the following 5 years, sorted out players,
for example, Uber, Meru and Ola will catch 15% of this market, which is developing at an astonishing
rate of 45% every year. The Indian cab market has seen a lot of traction, with over INR 600 crores being
raised by the leading players in the sector. While this has been a very competitive market, the organized
sector forms a small percentage of the overall market. It is estimated that the radio taxi market in India is
$6-9 billion dollars growing at 17-20%. It is also estimated that the number of taxis in the organized
sector will reach 30,000 by 2017. The sector has in the past few years seen tremendous growth with
nearly 10 fairly large companies operating in various models. But even in this clutter, three companies
stand out in their product uniqueness, customer service responsiveness, driver behaviour and timely
arrivals – Olacabs, TaxiForSure and the global sharing economy pioneer, Uber. Other companies that are
operating include Meru, Easy Cabs, Savaari and BookMyCab.

The market made a transition from owned fleet to a fleet aggregator model where anyone could own a car
and become an entrepreneur – in fact, Ola Cabs conducted a Driver Mela in Pune and Bangalore to get
vehicles at a discount to potential drivers. As well as aggregators are coming up with lots of attractive
schemes and plans for drivers and to lure their customers by getting different schemes to drivers from the
manufacturers like OlaCabs did Driver Mela in Pune and Bangalore, TaxiForSure came up with Magic
Trip on their Mobile Application, Uber comes up with different promo code from time to time.
 OLA – Company profile:

Ola initially started off as Olatrip.com a small website venture that offered weekend trip
packages. It was started as astartup business by two IIT Mumbai graduates Bhavish Aggarwal
and Ankit Bhati. Bhavish worked for Microsoft after college for almost two years and then
started a small website to sell online tour packages. Due to a bad experience during a car rental
situation they decided to mend the system of car rental and this became the basis for the
initiation of olacabs. Olacabs are now referred as Ola. Ola is a Spanish term which means hello!
This indicates that hiring a cab at Ola as well as the services provided are easy and friendly as
conveying hello. Ola cabs were founded on 3 December 2010 by Bhavish Aggarwal and Ankit
Bhati. Initially Ola operated from Mumbai as a taxi aggregator service. Now it has shifted its
head office at Bengaluru and works efficiently from there. Since Ola received its first investment
there has been no looking backward for this initiative venture. Until the year 2014, the company
had expanded to a widely distributed network which comprised of 200,000 cars across 85 cities.
These 85 cities include all the metropolitan cities and various important cities in it. During
November 2014, along with car rental scheme Ola also tried to incorporate autos on trial basis in
Bengaluru. After its success there it initiated the same idea in Delhi, Pune and Chennai by
December 2014. In the year 2015 Ola also started its auto services in Chandigarh, Indore and
Jaipur. In March 2016, Ola started its two wheeler services in Bengaluru as a trial venture. Until
September 2015 Ola was valued at around $5 billion market. Taxi for sure as acquired by ola in
march 2015 for $200 million. The company averages a total of about 150,000 bookings per day
and has the highest market share in India of 60%.

Swot Analysis:

A brief idea about the position of the company in the market can be estimated from the SWOT
analysis which indicates the respective strengths, weaknesses, opportunities and threats faced by
the company.

Strengths:
1. Ola is first of its kind taxi aggregator service provider in the country.
2. It achieved the no.1 rank in the sector after acquiring Taxi for sure.

3. The services offered by ola are well appreciated by the public

4. TV, online and print media marketing has helped to create awareness about the company.

5. Increase in customer base due to strong network effect.

6. Financial condition of the company has improved after investments by various firms.

Weaknesses:
1. Brand image can be easily influenced by the misbehavior of the drivers as they are the ne in
direct contact with the customers.

2. Monetization becomes difficult due to the demand.

Opportunities:
1. There is a huge potential for the company to penetrate deep into the market as the
unorganized market hold almost 85% of the segment.

2. As Ola coordinates through the smart phone app, increase in number of smart phone users
provides them with a great platform to increase their customer base.

3. Disposable income can be increased.

4. Convenient services create huge demand among customers.

5. Acquisition of smaller company of the market.

Threats:
1. Increasing competition.

2. Heavy usage of cash to attract customer due to strong financial root of Uber.

3. Presence of competitors at the national level.

4. No specific regulatory body of the government.

5. Customer loyalty is rare in this segment.

The History of Ola:

Ola translates to ‘Hello’ in Spanish. Probably to indicate that their services are as easy and
friendly as that, just like saying a ‘hello’.

Perhaps every story of an entrepreneur starts off with a “bad”5 experience. First of all to people
who may not know, Bhavish Aggarwal and Ankit Bhati, the founders of Olacabs, are two Indian
Institute of Technology (IIT) Bombay graduates. Engineers are good at engineering and can be
good businessmen too, especially if they come from IIT6 ! Bhavish worked for Microsoft after
college for two years and then left Microsoft and started an online company to sell short duration
tours and holidays online. While running that business for a couple of months, he took a car
rental from Bangalore to Bandipur and had a very bad experience.

This is what happened - The driver stopped the car in the middle of the journey and demanded a
renegotiation of what Bhavish was paying. After being refused, he proceeded to abandon him en-
route his destination. This is when he realized how his plight was probably similar to a lot of
customers across the country who were looking for a quality cab service, but ended up with a one
that stood them up, arrived and dropped them off late7 or did not stick to their promises, and
came with drivers that were nightmares behind wheels. For the first time, he saw the amount of
potential that a cab booking service could have, and hence, he changed his business from the
earlier mentioned start-up to the one we today know as – OlaCabs. This was in December 2010,
where he was joined by his co-founder Ankit Bhati in his start-up journey. His parents didn’t
agree with his idea in the beginning of course, like all Indian Parents won’t. They were
thoroughly displeased with his decision to become a ‘travel agent’, but when OlaCabs received
its first round of funding from two angel investors, they started to believe in the change he was
planning to bring (Santosh, 2015).

Ola is now handling around 1.5 lakh booking requests per day which translates into around 40
lakh for a full month (factoring in a few low days). With the average ticket size (gross
transaction value of ride) being Rs 320-400, it is doing Rs 130-160 crore in gross transaction
value a month, which means on an annualised basis it is on a run rate of $250-300 million. Ola,
is now planning to add on-demand auto rickshaw booking facility to its platform, and is running
a pilot with around 300 three-wheelers in Bangalore (Abudheen, 2014)
Market Share of OLA and Competition:
As previously mentioned Ola has a market share potential of 60% in India. The other
contenders in the market which fall under the organized segment include Taxiforsure(14%),
meru cabs(16%), uber(5%) and others(5%). Taxiforsure was acquired by Ola which further
increases its market share to about 74%
Being a part of the organized taxi market in the country which has the maximum
potential for growth in near future, it then becomes a fact that Ola is indeed faced by many
competitions in this sector. The major competitor of Ola is Uber. Meru and other are not well
designated competitors as the price criteria offered by Ola and the range of car available for rent
is far better and well accepted by the customer. Uber being at a position of 5% market share
holds tough competition for Ola as the future prospects of Uber are to penetrate deep into the
Indian market with an investment of over $400 million to take on Ola.
The New Concept of “Taxi Aggregator”

The aggregator or “marketplace model”4 is new in India and until now there has been a lack of
clarity about whether operators such as Uber, Ola and TaxiForSure are radio taxi or just an
aggregator. This came into sharp focus especially with the ban on Uber services when a woman
in Delhi, who used the Uber Company’s app to hire a taxi, was allegedly raped by the driver.
Uber may face lesser liability if it is treated as a taxi aggregator and a greater liability if it is
treated as radio taxi (Vijayakumar, 2014). What or, who then, is a taxi aggregator? The central
government, vide its budget 2015-16 has now clearly defined the term aggregator:

“Aggregator means a person, who owns and manages a Web-based software application, and by
means of the application and a communication device, enables a potential customer to connect
with persons providing service of a particular kind under the brand name or trade name of the
aggregator;” (Shah, 2015).

In the budget, the government has also clearly stated that if the aggregator does not have a
physical presence in the taxable territory, any person representing the aggregator for any purpose
in the taxable territory shall be liable for paying service tax.

The budget also stated that if the aggregator does not have a physical presence or does not have a
representative for any purpose in the taxable territory, the aggregator shall appoint a person in
the taxable territory for the purpose of paying service tax, and such person shall be liable for
paying service tax (Verma & Dalal, 2015).

Indian taxi market is estimated to be around $8 billion (Rs 48,000 crore) right now, out of which
only 5% is being managed under organized sector; which means that the market is wide open
right now. It is being projected that in the next 5 years, organized players such as Uber, Meru
and Ola will capture 15% of this market, which is growing at an astounding rate of 45% per year
(Ghosh, 2015).

Taxi space (market) in India is seeing a phenomenal growth in the past six years. $400 million
(Rs 2400 cr) of venture capital (VC) is pumped in the last four years (2010-2014) (Utkarsh,
2014). The major player in the taxi aggregator space is Olacabs and is threatened by the coming
of Uber. These taxi aggregator companies don’t own cars or even employ drivers; they simply
connect users with drivers, using technology. They are not into inventory but technology-driven
marketplace business model and will make money (not yet, though!) and how?
How is Ola superior to other aggregator taxi service?

Establishing a number 1 position in the taxi market and maintaining it indicates that Ola has
services to offer to the market which are better than other service providers from the same
segment.

Ola is different from other aggregator service provider or other segments in the way that they
themselves are the marketplace. This is because they list the rates and cars in their system. This
leads to price transparency and enables them to achieve customer trust. Another feature that
makes Ola superior is that they do not limit their services to the city boundary. They offer car
rental facility for outstation trips as well. Also, the ride later option available with Ola makes it
more customer friendly service. Ola also takes into account the safety of the customer and thus
has a 24*7 customer care service. The attractive price package and variety in the fleet of cars
target the moderate income segment which increases their customer base. The GPs tracker in all
the cabs to monitor the activity of the vehicle and high visibility in terms of logo contribute in
the success of the cab company.
Business model:

Ola taxicabs go about as a facilitator in giving taxicab booking administrations to clients through
numerous channels. Prior, clients could book their taxicabs through the site, call center or the
application. But later on Ola reconsidered their methodology and made appointments just
through the application. The drivers have an adaptability to choose their own particular time to
login to OLA Application and acknowledge demands for rides from clients. They may remain
logged out of the framework according to their need. The source of income for OLA is the
commission for every drive and the costs they bring about are additionally low as they
significantly need to contribute just on the technological innovation.

Ola has turned out to be an awesome innovation stage for transportation and offers simple
alternatives of booking a taxi through an application and offers adaptability to the driver as far as
readiness to work. The individuals who work more get incentives. These companies don’t own
cars nor do they employ the drivers, they simply connect with the drivers through the
application. They are the technology driven market place. The company thus began to grow at a
speed of light due to accomplishment of ahead of its time strategies.

Promotional and marketing strategy of Ola:

At Ola the strategy was to leave no stone unturned. They at Ola did everything from
attending the calls of the customer to providing driving facility to desired destination. All this
was done to sustain the market leadership in their hands. To achieve this various strategies and
promotional activities were adopted by the company. Some of them are discussed below.

EMPOWERING THE DRIVERS:

They offered micro entrepreneurship for the drivers by helping the drivers buy their own cars at
huge discounts and affordable repayment scheme as they collaborated with leading car
manufacturers.
OLA MINI:

One of the most successful marketing campaign launched by Ola is OLA MINI. The
feature f this strategy was that the price of this service was equal to the auto fares. The idea
worked well and got accepted by the public when they offered cab rides at auto fare price on auto
strike days in 2012 and 2013. Because Ola Cabs are having deep pocketed investors and can
burn money such services can be launched to cater the dire needs.

STRATEGIC PARTNERSHIP WITH MAKE MY TRIP:

In the year 2013, la cabs launched its partnership with make my trip. Under this
partnership the customers of make my trip would receive rental car facility for pick up and drop
at desired destination. This move by Ola helped acquire large customer base as people became
more aware about the brand.

TREATING CUSTOMER WITH CARE:

Customer is at the centre in marketing. The main purpose of all these promotional
activities is to build customer loyalty. Thus when it comes to taking care of the customer, Ola
leaves n stone unturned. Ola makes sure that all the customers who use the service of Ola are
well satisfied. If at all any mistake occurs by the system Ola makes sure to provide extra credit to
the customer’s account and also apologize for that matter. In this way it makes sure that the
customer base developed should not be hampered.

ADVERTISING PARTNERSHIP WITH TVF:

Ola has created partnership with TVF (The viral Fever) which is an Indian online web
series platform. TVF has a strong fan base and Ola has tried to take advantage of this situation.
Ola gets to acquire customers from TVFs existing fan base while on the other hand even TVF
gets to reach out to Ola’s customers.
OLA BOATS DURING CHENNAI FLOODS:

During Chennai floods when people were stuck in their offices or other areas Ola had
launched its ferry service. Ola had developed this service so as to help stranded people reach
home and also to deliver essential material including food, water, etc. The ferries had
professional rowers. Each ferry could accommodate 5 to 9 people per trip. The start up by Ola
was initially meant to be for three days but later they agreed to provide the service as per the
demand of the situation. The start-up came up for much praise on social networks with one

Twitter user cheekily describing the service as “uber cool”.

ECONOMIC STRATEGY:

Ola focuses on target marketing by segregating its fleet into different models which are
suitable for the demand of the customer and also fits their budget.
This includes Ola mini, Ola sedan, Ola micro, Ola prime, Ola pink, carpooling for
corporate, etc. Ola micro offers a base fare of rupees 40 with charges of rupees 6 per km.
whereas Ola sedan and mini have different package ranging between rupees 80 to 100 base fare.
These are suitable for customers planning long distance journey. Ola pink focuses on women
safety and is introduced for the women. The revenue through all this is created by supplying
large volume services by the adoption of this fee tiered system. People prefer it even more
because ola offers the lowest price rate compared to all other taxi aggregators.

SOCIAL MEDIA:

These include other means of promotion used by Ola to promote the brand in the market.
Ola cabs have used channels such as banner ads, newspaper ads, television ads on a large scale
as well as online marketing channel on Facebook, twitter as a part of its campaign.

From the online marketing tool Ola chose Facebook to run its first campaign as the
number of users is high over it. It enabled Ola to target right people at the correct time. The
campaign over Facebook which was termed as the #chaloniklo campaign was a huge success.
Various video ads featured content of #chaloniklo over Facebook including call to action by
which people would be propelled to download Ola app. It increased the popularity of Ola
apps.With Facebook campaign, the consumer acquisition rate increased and searches concerning
Ola cabs also increased, sales boost up by 60% as a result.

Henceforth, Ola picked Facebook over other advanced media implies in light of the fact
that it has biggest client base crosswise over India. The focused on crusade setting makes it more
reachable and gives organizations an exceptional yield on venture. Be that as it may, with FB
advertising, application clients expanded, the organization started getting greatest booking
therefore. Remarketing focused on the individuals who may have viewed the first campaign
called #Chaloniklo.
THE PRESENT GROWTH

And with the help of such ahead of its time & long term strategies, the company began to
grow at the speed of light.

By 2014, the company was now pocketing a network of more than 200,000 cars across
100 cities. Additionally, it was also clocking an average of more than 150,000 bookings
per day and also was now sitting on 60% of the market share in India.

Soon the company also brought about some huge developments which again, benefited
them greatly. Some of these included: –

They launched their Ola Mini service in Bangalore & consecutively in Delhi (NCR) with
a fleet over 250 cars and were also in preparations to grow to 800 by 2015. Their offer
again was pretty unique and luring. They had started with a introductory price of
Rs12/km with a base price of Rs.150 for the first six kilometres, making them the
cheapest AC cab services available.

Next, by the end of the year, Ola also expanded to incorporate autos in Bangalore and
also expanded this service to other cities like Delhi, Pune and Chennai.

Later, they announced their biggest news so far. OlaCabs bought TaxiForSure or TFS in
March 2015 for about $200 million. Although, this wasn’t their initial plan. Their initial
purpose was to fill in their huge requirement of drivers and hence, they had first tried to
attract their drivers by paying them some Initial Bonus + Attachment Devices Free of
Cost, but since they failed, they had to buy the company to maintain their stable growth.

Additionally, Ola who so far only had worked with Drivers, had now also begun working
with the cab operators after the acquisition.
With this acquisition in place; they also launched “Cashless Rides” which not only
worked with the cabs on their network, but was also extended to “Auto rickshaws and
Kaali-Peeli taxis” as well!

And lastly, Ola recently has launched “Ola Cafe”. In simple terms, through this service
one can order food, grocery, vegetables etc., and get it delivered to their households.

And when you look at Ola today, it has gone on to become India’s most popular mobile
app for cab booking, out-beating their competitors like Uber. To add to that, they are
also the largest platform with 40,000+ cars across almost 100 cities (2015) and growing.

Talking about their funding; Ola has raised a total of $676.8 Million so far from
investors like SoftBank, ABG Capital, Accel Partners, Mauritius Investments, Tiger
Global Management, Matrix Partners, Steadview Capital, Sequoia Capital and DST
Global. Their current valuation is roughly $3.5 Billion.
Competition

As already mentioned, Ola has 60% market share in India, the other players in organised taxi
sector being (with Market share shown in parenthesis), Taxi for Sure (14%), Meru (16%), Uber
(5%) and others (5%) (Business Standard Reporter, 2015). Taxi for Sure was acquired by Ola
(mind you, acquisition is not merger!) for $200 million i.e., Rs 1200 crore in March 2015
(Business Standard Reporter, 2015).

Why should Uber, with just 5% market share, be a competitor to Ola?! This is because Uber8 is a
San Francisco based taxi aggregator valued at $40 bn as compared Ola valuation of $2.5 bn.
Uber has a war chest of $1.5 billion for international expansion and has committed $400 million
to grow and expand its services in India; according to some estimates, Uber is likely to plough in
as much as one billion $ in India in this year 2015 to take on Ola. The money will be used to
improve the operations, expand into newer cities, develop payment solutions and establish a
robust support network according to Amit jain, President, Uber India (Team VCC, 2015).

The relevant question, therefore would be, how is Ola responding the challenge? What is the
strategy of Ola?

Making all the difference

Ola driver can never refuse service to a customer. When the driver wants to take a break, he has
the freedom to turn off the GPS tracker. But, once the booking is made, he cannot back-out.
Similarly, Ola, as a policy, does not ask where a customer wants to get dropped. Be it 100 meters
or 100 kilometers, our goal is to ensure that the customer’s journey from point A to point B is an
experience by itself, and has nothing to do with how far he/she is travelling.

To help maintain its service quality, the company has put in place quite a few criteria to bring an
operator or driver on board. As a first, the Olacabs team holds an operational and functional level
audit to assess if the car is worthy of being on the road. Secondly, it holds a training session for
the drivers, to bring them up to its standards. Thirdly, the Ola team conducts planned and
surprise audits from time-to-time, to ensure that the service is being delivered as per the
company’s expectations.
FINANCIAL PLAN

Funding

It raised $330k in its initial round of funding on April 21, 2011. The company received Series A
funding of $5 million from Tiger Global Management; Series B funding of USD 20 million from
Matrix Partners and Tiger Global; Series C funding of $41.5 million from Steadview Capital,
Sequoia Capital and its existing investors. In Series D round of funding on Oct 25, 2014, it raised
$210 million from SoftBank Internet and Media Inc. and its existing investors. It is back in
process to scoop between $300-500 million morein its series E funding.

REVENUE

For 2013-14, ANI Technologies, which runs Ola Cabs, reported a 50 per cent jump in net loss at
Rs 34.21 crore, against Rs 22.80 crore in 2012-13, according to filings with the Registrar of
Companies (RoC).

In terms of revenue, Ola Cabs, backed by private equity funds Tiger Global and Matrix Partners,
has reported solid growth. Its Rs 51-crore revenue in 2013-14 was 219 per cent higher thanRs 16
crore the previous financial year.
 PROBLEMS STATEMENT

Fix your location tracking

The drivers are unable to reach the pick-up point based on the GPS / location from the app.
Many drivers have complained that they don't get a clear location or a route map on the apps.
Ola is accurate but not real-time .

Penalize errant drivers

In order to increase the availability of the cabs, the service providers (Ola) give them a bonus for
being online for a certain time daily or weekly. Therefore, many of the drivers keep their apps
turned on even when they are unavailable to respond to a request. They are willing to take the
chance of turning away a customer in order to add to punch in more hours. Also, some drivers
refuse to show up when they realize that the destination is not very attractive to them.

Set an example on the roads

While there has been much discussion on improving security / transparency through better
verification of drivers, an equally important expectation from Ola is that they would follow safe
traffic practices. No mobile phone while driving, following speed limits, obeying traffic lights,
using a seat belt, using turn indicators while shifting lanes / turning. These have to become
standard driving practice. If Ola cannot have better driving practices than the regular taxis, autos
and buses, then what's the point?

Ola cabs stop taking online booking

Olacabs, an online car rentals and cab services venture has stopped taking rental booking from
all the Indian cities where it operates.Olacabs has indeed stopped accepting rental
bookings, citing poor demand behind this move.

Government Regulations

With the increasing crime rates in the national capital, Delhi government has banned radio taxi
and certain services of taxies acting as a critical roadblock in their expansion and growth.
 OBJECTIVE THE STUDY:

To understand underline phenomena of the:

1. Impact on private car ownership / usage.

2. Impact on parking.

3. Commuter perception (safety, comfort, reliability, cost / priceelasticity).

4. Impact on the environment.

 SCOPE OF THE STUDY:

 The scope of project included evalution of the application and was primarilyconcerned
with the transaction related to booking of tickets from the terminaloperated by the
railway personnel.

 Scope for new players to enter in this market.

 Enough scope for all existing players and perhaps a couple of new players as well (Find a
real and sizeable problem to solve, create a very strong value proposition and execute
brilliantly.)

 More and more hatchbacks and low cost options will be introduced cater to the price
conscious Indian market and to compete against other form of public transports.

 In the next five years, Olacabs is looking to create a presence in 10 to 12 metro and Tier-
II cities and make transportation economical, efficient and effortless for everyone. In all,
our goal is to empower the operators as entrepreneurs and hence deliver great customer
value.
 MEHODOLOGY

DATA COLLECTION:

1. Primary data:

In the light of the above problems I surveyed 200 people from my society.
Following are the 7 statements which were put to the respondent’s likert’s data were coded +2,

+1, 0, -1, and -2 after rectifying the missing entries.

The statements are as follows:

1. Ola services are convenient services at anytime of the day or night.

2. Ola services are safe.

3. These services will reduce the use of auto-rickshaws.

4. Ola users will not have to worry about parking their vehicles.

5. These services can be used only by Internet-savvy people.

6. It will reduce traffic on roads as personal cars will be used lesser.

7. While using Ola services you are protected from pollution.

The methodology includes using online surveys of commuters, surveys and personal interviews.
The survey included questions regarding user demographics, techno friendly, and preferences of
these services over auto-rickshaws, car ownership, and reasons for using on demand cab
services, and the quality of these services.
RESULTS:

Statement 1,2,3,4,5,6 are Accepted which are:

1) Ola services are convenient services at anytime of the day or night.

2) Ola services are safe.

3) These services will reduce the use of auto-rickshaws.

4) Ola users will not have to worry about parking their vehicles.

5) These services can be used only by Internet-savvy people.

6) It will reduce traffic on roads as personal cars will be used lesser.

Statement 7 is Neutral which is:

7) While using Ola services you are protected from pollution.

CONCLUSION:

Therefore by the analysis we conclude that:

 The services offered by Ola are convenient and safe at anytime.

 This will also reduce the use of auto rickshaws and people need not worry of parking as
they would reduce using their own personal cars.

Hence,
Such services like Ola/Uber are coming up and will only increase its use in the future with more
advancement using technology and other internet savvy techniques.
 2. Secondary data:

 The data have been already collected by and readily available from other sources
 Annual reports were used to collect secondary data.
DATA ANALYSIS:
Data was put into an excel sheet, calculations were done by using the formula:
Mean= ∑x/N
Standard Deviation=∑(x- x̅)2/N-1
Standard Error=S.D/√N
Z= x-0/(S.D/√N)
If, Z>1.96, Accepted the statement.
If Z>1.96 and Z>-1.96, Neutral.
If Z<-1.96, Rejected the statement.
Q1
Mean= 1.225
Standard Deviation=0.725954579
Standard Error=0.051332741
Z= 23.86391194
Accepted
Q2
Mean= 0.885
Standard Deviation=0.724152598
Standard Error=0.051205321
Z= 17.28335998
Accepted
Q3
Mean= 0.66
Standard Deviation=0.948100455
Standard Error=0.067040826
Z= 9.844747426
Accepted
Q4
Mean= 0.6
Standard Deviation= 1.070387146
Standard Error=0.075687801
Z= 7.92730126
Accepted
Q5
Mean= 0.77
Standard Deviation= 1.064313778
Standard Error=0.075258349
Z= 10.23142296
Accepted
Q6
Mean= 0.17
Standard Deviation= 1.098697264
Standard Error=0.077689629
Z= 2.188194268
Accepted
Q7
Mean= 0.105
Standard Deviation= 1.109110287
Standard Error=0.07842594
Z= 1.338842727
Neutral

Limitations

While collecting the responses through the questionnaire, there were some responses where in the
samples did not answer the questionnaire in the intended manner. Thus to overcome these misleading
responses we discarded some of the responses. Initially we had 137 responses out of which only 107 were
desirable and rest was redundant.
Differentiators and Customer Feedback

Convenience Book within seconds and get instant confirmations. Easy online payments or cash
on delivery. Booking car rentals will never be a headache again!

My parents really had a very comfortable journey. They were very happy with the driver too.
Thanks Ola, I surely would like to use your service again.

Mr. Deepak Abbot Vice President –Product at Zapak.com

Quality Our cars are audited for cleanliness, safety and comfort. Our drivers are well trained and
reliable. Sit back and enjoy the Ola experience!

We had a really nice time. My family enjoyed a lot. Thank you so much.

Mrs. Aarti Palkar Mumbai

Control We have clear and transparent pricing listed online. Never haggle with drivers again on
payments and be confident and assured of what you are being charged for! The car was very
well-maintained and the driver was well-behaved and courteous. It was a wonderful experience.

Mr. Saurabh Agarwal Marketing Advisor, RWE Supply & Trading GmbH
 CONCLUSION

Ola has seen a tremendous growth in the taxi market sector. There is surely no looking back for
Ola as it is improving day by day in every prospect. Revenue of Ola has increased almost 10
folds over the past four years. Today, it is the largest cab service provider in the country. Ola has
successfully achieved public support and has created a buzz about its brand in the market.
Furthermore if some more technological advancement is done at Ola then the customer base can
be increased by providing better experience to the customer. Ola now has shifted its focus on
target markets and is focused on providing desired service to the people in the target market. The
economic segregation depending upon the income group and requirement of the people is well
appreciated. On one hand Ola promotes its brand by traditional methods and on the other hand it
also uses the modern techniques of promotion. At the same time it does not forget to highlight its
name in social safety, creating social awareness and promoting acts of humanity. The key
element in making Ola a successful brand is the efficient and quick accessibility which is offered
by the firm. The firm not only improves through its intense promotional activities but also due to
the services and comfort offered to users and employees. Ola is making you sluggish. A single
tick gets you a taxicab. Habits are less demanding to develop when the change required in
conduct is minor. What's more, once a habit is shaped, it’s difficult to backtrack.

So OLA has been and will be a great technology platform for transportation and offering flexible
options of booking and payment to customers and flexible timings and facilities to drivers. And
shortly, we are going to experience a big boom and great facility of getting our grocery delivered
to us with ease. Kudos to the idea of the founders and something more to make us proud is that it
has been started in India by two genius Indians.
 BIBLIOGRAPHY

[1]. https://www.olacabs.com/info/about_us.

[2]. http://www.ciim.in/ola-cabs-business-strategy-case-study.

[3]. https://yourstory.com/2014/06/ola-taxiforsure-uber/.

[4]. https://techstory.in/olacabs/.

[5]. http://www.themultiplier.in/2016/02/the-secret-behind-ola-cabs-marketing.html.

[6]. Can You Buy Loyalty? The Downside of Discounts (http://blog.kissmetrics.com/downside-

of-discounts).

[7]. http://www.startuptimes.in/2014/10/ ola-cabs-business-revenue-model.html/.

[8]. http://www.business.com/starting-a-business/key-factors-that-determine-startup-success/.

[9]. http://www.businessinsider.com/5-keys-to-startup-success-2011-5?IR=T

[10]. http://www.estartups.co.in/ola-success-story/

[11]. http://taxguru.in/finance/ola-success-story-business-model-future.html
http://www.pbr.co.in/March%202017/11.pdf

http://sdmimd.ac.in/SDMRCMS/cases/CIM2015/16.pdf