'Ola Cabs': A Journey from scratch! Read Now | Startup Bazaar
case study of OLA cabs

‘Ola Cabs’: A Journey from scratch! Read Now

 

                                                                       

                ‘Ola Cabs’ need for the utility; A Case Study

“It’s not about ideas; it’s about making ideas happen”, a famous quote by the founder of Behance ‘Scott Belsky’. It truly accounts for a startup’s success; do not be occupied utterly on the thought of making your startup realistic, rather work for the same and work in a way that no fatal situation would debase you.

Here, we will be considering one such Indian startup ‘Ola Cabs’ that despite bearing comparable competitors in the society had made its trademark and provides the amenities to its customers in an assorted and cost-effective form. The brand has an exceptional and substantial sales figure in the market, regardless of some noted services.

Let’s get back to 2010 when Ankit Bhati co-founder and CTO and Bhavish Aggarwal co-founder and CEO of this renowned brand thought about the idea. The startups that have aroused through self-occurrence are the most fortunate ones. Correspondingly, it is true in this case, that Bhavish who one day had to travel from Bandipur to Bangalore communicates with a taxi utility center.

There was an urgency to him but he did not receive his taxi on time. Out of the hour when the taxi driver approached he did not want to argue at the very same point therefore, loaded the tax and went further. To Bhavish’s astonishment driver ceased driving in the middle of the jungle and asked for extra payment to drive further. The scenario happened when the price had been already decided, and the situation was an issue. On the same day Bhavish was annoyed by the limited taxi services, the price negotiations, and the haughtiness of the drivers

Bhavish pondered, discussed with his co-founder Ankit and both landed on a conclusion, to begin with, a travel agency. It all commenced with taxi services for local journeys and move and carry. The year they started it had already engaged the world with the internet services and thought the idea of making this service at a digital level went up high to these two pass-outs from IIT Mumbai, where the reach to such new faces entrepreneur are emerging daily.

At the start, they were with no team and handled the physical plus the technical credits on their own. The one inspiring fact to be mentioned everywhere you read about Ola Cabs is Bhavish the man who never owned his car, rather he has more than 1 million cars on his portal.

A startup needs publicity for its reach, and a service startup like Ola had a definite acquisition to be in that state. Here, we are talking about the Commonwealth Games Delhi 2010, during the event the co-founders used to distribute their brochures on the panel for a wide range and engagement. More than making facilities and technicalities on a digitization mode, they were on a laboring cause for their startup.

The manual tasks provoked them two to shift a little, and they went from a travel agency to ‘Ola Cabs’, at the time of this startup the emergence and explosion in the market were phenomenal and gradual at the same time. There was a time confines were cut across and lagged, molding the company into the greatest taxi service provider of all time. The company got its 1 Billion valuations and the label of the most secured and accelerated company.

Talking about what has happened to the company now? It is still the most profitable and valuable taxi service brand in India comprising 56.2% upwards of its chief competitor in the game which establishes at 36.9%. The brand has made its availability and accessibility internationally too, till the time they had sheltered countries such as Australia, New Zealand the United Kingdom.

The company is on a survey to traverse extensively over the coming period. The measure of the company’s evolution and enlargement is way too prompt and immediate. The vision with which the co-founders landed on this situation was the understanding of the Indian economy and infrastructure, their sight was commendable to see through the greater use of shared cars in the upcoming generations.

What vision do they start up with? It was the no-use of buying cars; they solemnly do not own a car and keeping the financial borrows of the Indian population they wanted the public to assimilate the use of taxis and not the owned cars. They wanted to degenerate the loans and the EMI’s, the cost of the fuel, cost of the maintenance.

As the lifecycle of a product goes well in a market, the lifecycle of a serviceable brand should also be clear with the founders and Bhavish Aggarwal did pass it out. A startup with already existing candidates in the market makes the need for a differentiator more crucial. So, did Bhavish did, for the engagement rate to be stroked they started up with their schemes for the customers such as, refer and earn plus some coupon discounts, provided the cheapest rides.

The very next stage was the engagement of the drivers, they want to be generated in public to be taxi drivers. Bhavish was a witty personality here and as he provided the customers with different schemes, the same scene was being copied and he gave the plus incentives to retain the drivers in his business.

The company understood and made it practical that the maintenance and the supplementary additional costs of the cars were to be maintained by the drivers. The brand required just the drivers and customers on- board for their further communications; this was the eco-system they acquired with time. This planning and execution were told to their investors and strategic partners to invest in the company.

Today, in our nation Ola covers almost 110 cities and is the most competitive ‘Uber’ in 38 cities. Shifting to the other perspective where the profitability of the brand lies is the incentives and commissions from the Ola drivers, for the retention at the beginning incentives were on a larger scale than they are now, and the reciprocals happen in the case of commissions from them.

The facility of ‘Ola Money’ is also being aggregated and improved, for example, you can pay for the restaurants, metro trains, insurance, travel, and much more. Therefore, they are also standing in the online wallet business with the brands like Paytm, Airtel Money, and MobiKwik.

For the same inception, the logistics services are being more looked up to like Ola with buses, Ola Pedals, auto-rickshaws.  With this expansion, the company has also taken over ‘Food Panda’ over the Uber eats, by diluting the equity in Ola cabs with the founders of Food Panda with the vision of large scalability of food delivery services in the coming era in India.

Strategies and tactics for the upliftment of a company are prime support, that is why Ola is today with a double customer base in India as Uber. One such strategy the company adopted is the apprehension of the rural market, where internet services are still not on a higher note. For the same, they are looking forward to light usage of their application that would be easily operated in the rural areas. More such tricks were applied toreading la the customers such as the referral and free ride scheme which attracted more and more public in their target market.

This was the talk on the startup now fully equipped and established business ‘Ola Cabs’.

 

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Other Resources:

https://simconblog.wordpress.com/2016/11/30/ola-case-study-analysis/

Ola case study: The story of a Millionaire without a car

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