Case study of Ola Cabs Start-up……..

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Case study of Ola Cabs Start-up

About:

Description Ola Cabs is an Indian ridesharing firm that provides services including peer-to-peer ridesharing, ride-hailing, taxi, and food delivery. The company was founded by ANI Technologies Pvt and is headquartered in Bengaluru, Karnataka, India. Ltd. Ltd. Ola had been valued at about $10 billion as of October 2019,

  • Founded on: Mumbai 3 December 2010.
  • Chief executive: Bhavish Aggarwal (3 Dec 2010 )
  • Adequate staff companies: Foodpanda India; Ola Electrical Mobility
  • Headquarters: Bengaluru
  • Revenue: INR 2.222 crores (2018)
  • Founders: Ankit Bhati, Bhavish Aggarwal.

Ola Cabs Business Plan:

Through numerous channels, Ola taxi cabs go about as a facilitator in giving clients taxicab booking administrations. Before that, customers could book their taxicabs via the site, call center, or application. But Ola later reconsidered their approach and only made appointments via the form. The drivers have the adaptability to select their own particular time to log in to OLA Application and recognize customer ride demands. They may remain logged out of the frame as needed.

OLA ‘s source of profit is the commission for any move and the costs it entails are also small as they need to contribute greatly to technical advancement alone. Ola has proved to be an amazing stage of creativity in transport, providing easy alternatives to booking a taxi with a website and providing driver adaptability to job readiness.

The ones who work hard are getting the benefits. These companies do not own cars, nor do they employ the drivers, they simply connect via the application with the drivers. We are a market place guided by technology. The business thus started to expand at a speed of light due to ahead of the time plans being accomplished.

FUNDING by INVESTORS:

  • In February 2019, Ola split off its electric car business into a new company called Ola Electric Mobility with US$ 56 million in investment money. Tiger Global and Matrix India contributed to the funding.
  • In addition to electric cars, Ola Electric is also focusing on charging technologies, EV batteries, and building feasible infrastructure to allow commercial EVs to run on a scale. On 6 May 2019, the company revealed that Ratan Tata has invested an undisclosed sum in Ola Electric as part of its Series A funding round.
  • Ola Electric earned SoftBank $250 million during the Series B round of investment in July 2019, gaining more than $1 billion in interest.
  • Anand Shah, co-founder, Ola Electric, and senior vice-president, Ola Cabs said Ola Electric would need more capital to reach its target of putting 10 lakh (1 million) EVs on the roads by 2021.

Marketing strategy:

  • STRATEGIC PARTNERSHIP WITH MAKE MY TRIP: la cabs started their partnership with making my trip in the year 2013. Under this partnership, my trip customers would receive rental car facilities to pick up and drop off at the desired destination. This move by Ola helped to gain a large base of customers as people became more aware of the brand.
  • TREATING CUSTOMER WITH CARE: The customer is at the marketing center. All these promotional activities have the primary purpose of building customer loyalty. Thus, Ola leaves n stone unturned when it comes to customer care. Ola makes sure all customers who use Ola ‘s service are well pleased. If any error occurs by the system, Ola will ensure that the customer’s account receives extra credit and also apologize for it. This way it means that the existing client base will not be hindered.
  • ADVERTISING PARTNERSHIP WITH TVF: Ola created a partnership with the Indian online web series platform TVF (The Viral Fever). TVF has a strong fan base and Ola has tried to exploit that situation. Ola gets customers from the existing fan base of TVs while on the other hand even TVF gets to reach customers of Ola.
  • Financial STRATEGY: Ola focuses on consumer marketing by segregating its fleet into different versions that are appropriate for customer demand and that also suits their budget.
  • SOCIAL MEDIA: These are other advertising tools used by Ola to promote the product on the market. Ola cabs used platforms such as banner advertising, newspaper advertisements, broad-scale tv ads as well as Facebook’s online media site, twitter as part of their initiative.

Challenges faced by Ola Cabs:

  • Competition growing
  • Security of women.
  • Competitor activity at the regional level.
  • No relevant Government administrative agency.
  • Within this market consumer satisfaction is low.
  • Dropping into the wrong places.
  • It takes so long to get there.
  • Trip termination without warning.
  • Driver behavioral issues.

The successive factor of Ola Cabs:

  • Ola is the first of its kind taxi aggregator service provider in the country.
  • It achieved the no.1 rank in the sector after acquiring Taxi for sure.
  • The services offered by ola are well appreciated by the public.
  • TV, online, and print media marketing has helped to create awareness about the company.
  • Increase in customer base due to strong network effect.
  • The financial condition of the company has improved after investments from various firms.

Result:

In the taxi market sector, Ola has seen tremendous growth. There is no going back for Ola when every prospect grows day by day. Ola ‘s revenue has increased over the past four years by nearly 10 folds. Today, it’s the country’s biggest taxi service provider. Ola has successfully gained public attention and created a sensation on the market for her products. Also, if there is some more technological advancement at Ola then the customer base can be increased by providing the customer with a better experience. Ola has now shifted its focus to target markets and is focused on providing the people in the target market with the desired service.

Based on the class level and people’s conditions economic inequality is well accepted. Ola, on the one hand, markets the brand by conventional approaches and, on the other, still employs the latest branding strategies. At the same time, it does not forget to emphasize its name in the field of social security, creating social awareness, and promoting human acts. The main factor in making Ola a profitable brand is the company’s reliable and easy accessibility.

References*:
Information was taken from Google, Wikipedia, and particularly from their startup website and app.*

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