Ola by Kiran Kvss

A Project report on: Emerging Business of Cab Services in India : Ola cabs
Submitted By: Mr. Kiran KVSS

Final Year Bachelor of Business Administration Register No: 14N12918
INDEX
SL.NO PARTICULARS PAGE

NO.
1 EXICUTIVE SUMMARY
2 BUSINESS IDEA AND OPPORTUNITY
3 MARKET ANALYSIS
4 MARKET OF THE ORGANISED TAXI

SECTOR IN INDIA
5 DEVELOPMENT AND PRODUCTION PLAN
6 CRITICAL RISKS AND PROBLEM
7 SWOT ANALYSIS


Name of company:- Ola cabs
Contact Details:-24x7 Call us (022) 33553355
Corp office: ANI Technologies Pvt Ltd

4th Floor, Sun teck Centre,
37-40 Sub hash Road,
Vile Parle (East),
Mumbai - 400 057
Tel : 022- 30947900
Ph no - 022-30947900
Company registration number:- U72900MH2010PTC240894, registered at

Chandigarh.
Date of Incorporation:-3 December 2010
Prospective Financer: - Tiger Global Management, Matrix Partners, Stead

view Capital, Sequoia Capital, Soft Bank Internet and Media Inc.

EXECUTIVE SUMMARY
Vision
The vision behind Ola cabs is to provide hassle-free, reliable and technology-
efficient car rental service to Indians. In a deeply fragmented and highly
unpredictable market of car/taxi services, there is a significant shortage of easy
and comfortable on-ground options for transportation will be it within a city or
outside.
Revenue Model
Runs on pay- for- performance model.OLA charges a commission in whatever
sales they make. Also to get access to technology platform.OLA charge taxi
owners a small fee.
Technology
The mobile app is not what makes Ola cabs different from the several radio taxi
services that have sprung across the country. Bhavish Aggarwal, co-founder
and chief executive officer of the company, describes Ola cabs as a technology
firm rather than a cab-services firm. One of his ambitions is to be able to deliver
a cab within 20 minutes from the time of booking. For this, the company is
making use of data analytics, so that they can forecast demand for its services
on a daily basis. Based on this data analysis we intend to providing service
within 20 minutes of booking. At present it is around 30-35 minutes.
Target Market
The Indian radio taxi market alone is pegged anywhere between $6-$9 billion
dollars by different estimates, and is forecasted to grow at 17-20% annually.
More importantly, the organised taxi market is still minuscule as compared to
rest of the taxi market in India; it constitutes only 4-5% of the market in terms
of sheer number of vehicles. The rest is by operators who own fleets of 2-50
cars and typically have a presence in 1 or 2 cities. An Ola cab is targeting three
sectors of market that is providing services to customers for outstation, city taxi

and local rentals. These services are offered by making variation in fleet those
are luxury, sedan, hatchback and Ola mini.
Financials
In 2012, the company had raised over $5 million in its Series a funding from
Tiger Global. Prior to that, it had raised angel funding from a bunch of
individual investors, including Rehan Yar Khan and Anupam Mittal. November
2013, Ola cabs had raised its Series B round of funding led by Matrix Partners
India for a big minority stake, with participation from existing investor Tiger
Global Management. Although the company had not disclosed the amount at the
time, media reports pegged it at $20 million. Prior to that, it had raised Rs 19.2
crore ($3.2 million) from existing investor Tiger Global in July the same year,
which was believed to be part of the same round. It raised Rs 250 crore ($41.8
million) in its Series C round of funding led by Hong Kong-based hedge fund
manager Stead view Capital and Silicon Valley-based Sequoia Capital. Existing
investors Matrix Partners India and Tiger Global Management also participated
in this round. Ola cabs had raised $210 million in its Series D round led by
Japanese internet and telecom giant Soft Bank. The proposed fundraising, which
would be its Series E or fifth round of institutional funding, it is back in the
market to scoop between $300-500 million more, would strengthen its position
as the most heavily funded player in its business.
Management
Ola cabs, founded in January 2011 by two IIT Bombay alumni Bhavish
Aggarwal and Ankit Bhati is India’s largest aggregator of car rentals and point-
to-point cab services. Ola cabs integrates car transportation, be it point-to-point
services within a city, hour-based rental services or outstation travel, onto a
technology platform, ensuring convenient, transparent and quick service
fulfilment for the customer. Right now, we’re a two-member team Ankit is the
CTO and handles the technical aspects, from building the website, building the
backend platform, scaling servers etc. I’m the CEO and I handle the operator
partnerships, sales and operations. And yes, we are looking at hiring like-
minded and passionate people for technology and product development roles.
Ola has also hired professionals for corporate affairs, public policy, marketing
and category management among others.

"We look for people who have a shared vision in shaping something futuristic
and have done it in their own," said Bhavish Aggarwal, co-founder and CEO,
Ola Cabs.
BUSINESS IDEA AND OPPORTUNITY

I had once rented a car for a weekend trip with friends to Manipur
from Bangalore. The driver turned out to be a cheat. He stopped the
car in Mysore en route to Manipur and asked to be paid more than
what had been decided earlier. He was so rigid and ill mannered that
we had to leave him there and continue our journey by bus.
This led to the business idea of using technology to offer a better and more
predictable experience to consumers, right from easy online access to car rental
bookings, quality assurances through reviews/ratings and proper information
about the car and the driver.
Our market is large enough because India’s rate of vehicle ownership is low to
41 per 1000 people and ranks 128th worldwide and therefore our company has a
strong belief that there is an opportunity for population to “leap frog”
automobile ownership altogether and instead rely on booking services like ola
cabs. The population of India is 1.2 billion which is large enough for our
company to capture the 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 entire ground
transportation industry in India is run in a very opaque, inefficient and ad-hoc
manner. There is no service guarantee or price transparency for the consumer
and operators are also troubled with no structured channel through.

Which customers can be sourced? We believe that technology will help make
this industry efficient and drastically improve the consumer experience in years
to come.
Ola cabs provide cab-booking services to customers through multiple channels
but it does not own any cabs. "We are a technology company. We are a
technology platform for transportation. We help connect customers and drivers
better," said the Ola cabs CEO .Most of the existing portals work as opaque
agents, offering marked-up rates. An Ola cab on the other hand, has a
marketplace approach. We tell users the rates of different operators along with
what accessories and features each car has. So, users can compare and book the
one which suits their needs the best. The rates displayed are also exact fares that
a customer would get directly from the operator.
Also, most cab booking portals are plain vanilla websites with price listings.
Our strategy is to focus on the backend interface with car operators because that
would ensure a certain level of quality and predictability with respect to the
consumer experience. We intend to bring all car operators and all taxis on to a
single technology platform to enable real time inventory distribution, nationally.
Unique offerings
Customers can book cabs through its apps, website and even call centre.
Recently, it launched the facility of cashless payment by offering an in-app pre-
paid wallet will allow customers to recharge their account through a credit
card. The firm also began making auto bookings available on its platform in
beta mode across six cities in India including Bangalore, Mumbai, Delhi,
Chennai, Pune and Ahmadabad. Another new category that is currently in beta
mode is ‘Ola Pink’, cabs driven by women drivers and is only for women
passengers in Bangalore. It also started adding the conventional black & yellow
cabs of Mumbai to its platform. Recently, the firm roped in Gurgaon-based
background-verification firm Auth Bridge to vet the drivers.
Among the other initiatives, the firm released an SOS button for customers,
whom, when activated, sends out all ride details in real-time including GPS
coordinates to pre-set friends and family members of the user via SMS and e-
mail. One of his ambitions is to be able to deliver a cab within 20 minutes from
the time of booking. For this, the company is making use of data analytics, so
that they can forecast demand for its services on a daily basis.

Ola Prime’s business class experience fleet includes cars like Toyota Innova,
Altis, Skoda Rapid and Honda Civic. Ola Mini shall remain the most affordable
personal transportation option in the city and its fleet include hatchbacks like
Tata Indica and Nissan Micra amongst others. The flagship Ola Sedan is aimed
at a regular city traveller looking for a spacious car and comfortable drive and is
currently available across all 12 cities where Ola is present and includes cars
like Suzuki DZire, Mahindra Verito and Toyota Etios.
MARKET ANALYSIS
The taxi space in India is heating up and has been seeing a phenomenal growth
in the past 6-7 years. Over $400 Mn (INR 2400 corers) of VC money has been
pumped in into these companies in the past 4 years itself.
Ola cabs recently raised over $210 Mn in Series D from Softbank at a valuation
of over $1 Bn to focus on expansion. Taxi for Sure also raised over$30 Mn in
its latest round while Uber has a war chest of over $1.5 Bn to fuel its
international expansion. Uber has also committed almost $400 Mn to grow and
promote its service in India.
The Indian radio taxi market alone is pegged anywhere between $6-$9 billion
dollars by different estimates, and is forecasted to grow at 17-20% annually.
More importantly, the organised taxi market is still minuscule as compared to
rest of the taxi market in India; it constitutes only 4-5% of the market in terms
of sheer number of vehicles. The rest is by operators who own fleets of 2-50
cars and typically have a presence in 1 or 2 cities.

With this in perspective one can now see why each player is trying to
aggressively expand and is raising such humungous funding rounds. The
aggregators like Ola, Uber and TFS have just conquered less than 3-4% of the
total available market of India so far and have a huge opportunity in front of
them.
Starting Up:
 Ola cabs started its operations in 2010 from Mumbai under the name
of ANI Technologies Pvt. Ltd.
 TaxiForSure.com started its operation in 2011 from Bangalore under
the name of Serendipity Info labs Pvt. Ltd.
 Uber started its operations in India in 2013 starting from Bangalore,
but the parent company operates under Uber Technologies Inc,
incorporated in the state of Delaware, US

Going Mobile:
 Ola Cabs launched its Mobile App on Android first, followed by IOS
in 2012 followed by Windows in 2014
 Taxi For Sure launches its Mobile App on Android &IOS in 2013
followed by Windows in 2014
 Uber started its operations in India (2013) with Android and IOS
apps. Uber App on Windows platform is published by Caro Apps
Senior Management Hires:

 Ronald Rosario, India Head of Operations at Meru Cabs, moved to
TaxiForSure.com (2012)
Unique Marketing Initiatives:

 Ola Cabs provided a lot of promo codes on their website to give huge
discounts in various segments. They also started the trends of
providing fixed rate drops to the airport when they launch in a city
 Ola Cabs provides cabs at INR 13 per kilometre whenever Auto
Unions call a strike
 Taxi For Sure provides promo codes on Tuesdays
 Uber is way ahead in marketing as they did campaigns during
elections (providing Uber at a discounted rate for voting), Uber Stud
(to encourage referral) and free credits while introducing a new
customer. Recently they launched Uber Chopper by which you can
ride a chopper and have a view of your city’s skyline
MARKET OF THE ORGANISED TAXI SECTOR IN INDIA
Mega Cabs and Fast Track Taxi started out in 2001 itself with small fleets. The
market, however, started seeing traction only from 2006 onwards when the likes
of Meru Cabs, Easy Cabs and Safari came up. There are now several
competitors eyeing for a piece of the pie.

Phase 1 – Fully Owned Fleets

In the initial phase of the market companies owned the complete fleet with the
drivers as salaried employees. This was characterized by high capital costs to
the company – car loan EMI’s, high maintenance costs. While this model
facilitated rapid expansion, it also came at a huge cost. Caused high stress levels
in drivers and there were driver strikes that affected the service.
Bookings were mainly done via telephone calls and cash was the dominant
model.
Phase 2 – Fleet Aggregation Model

Companies like Taxi For Sure and Ola started this model where small fleet
owners or single car owners can put the company brand on the car, and get
registered with them. Cars are free to take up non-company rides, but for every
company-initiated ride, they pay the company a fixed percentage as
commission. This model had low capital expenditure and lower maintenance
costs.
Booking was done via telephone calls as well as through their websites. While
cash was still the dominant payment form, in-cab POS terminal for credit / debit
cards started being used as well in this phase.
Phase 3 – The Hybrid Model (Current Phase)

In this model part of the fleet is owned by the company and part of the fleet is
from an aggregation model, hence providing the best of both worlds – better
control on cab availability and service quality while keeping costs low.
Booking are done via telephone, website as well as mobile apps and the
payments via cash, card and wallets.

THE ROAD AHEAD

The radio taxi space in India has huge headroom for growth and is far from
saturation. While there is a good scope for expansion in tier 2 cities, the metros
will still be the primary market for all the players. Hence we might see price
wars and more fleet variations (like Ola Auto, Ola Nano) and Uber go being
introduced.
More and more hatchbacks and low cost options will be introduced to cater to
the price conscious Indian market and to compete against other forms of public
transportation. Service assurance & quality and convenience will emerge as the
long-term differentiators. Ride- Sharing might come up in the next 3 years and
has the potential to bring down costs even further for the consumer as well as
reduce costs even further for the taxi players. There are quite a few small ride
sharing start ups already like Lets Ride, Ridingo, Zify, Pool Circle and Rocket
Internet’s Tripda to name a few. Uber is already experimenting with this in
other markets and might bring this to the Indian market soon as well. There will
also be scope for M&A activities with consolidations happening among
ridesharing players or one of these taxi companies scooping up ride sharing
players to fuel its foray into ride sharing. There are definitely some exciting
times ahead, both for consumers as well the taxi companies.

FINANCIAL ANALYSIS
For 2013-14, ANI Technologies, which runs Ola Cabs, reported a 50 per cent
jump in net loss at Rs 34.21 crore (Rs 342.1 million), against Rs 22.80 crore (Rs
228 million) in 2012-13, according to filings with the Registrar of Companies.
Taxi For Sure, also facing a nationwide ban, has widened its loss, too.
Serendipity Info labs the holding company for Taxi For Sure, reported a loss of
Rs 17.08 crore (Rs 170.8 million) for 2013-14, compared with a profit of Rs
3.02 crore (Rs 30.2 million) the previous year.
For 2013-14, Meru Cab Company, which runs Meru Cabs, reported its maiden
profit, of Rs 3.55 crore (Rs 35.5 million).In 2012-13, it had recorded a loss of
Rs 31.11 crore (Rs 311.1 million).As of March-end this year, the company’s
accumulated loss stood at Rs 215.24 crore (Rs 2.15 billion).
Mega Cabs, which owns and has been operating taxis round the clock across six
cities since 2001, reported a loss of Rs 2.55 crore (Rs 25.5 million) on revenue
of Rs 36.37 crore (Rs 363.7 million) for 2013-14.
The company, which claims to have the largest radio taxi network in India, had
posted a net profit of Rs 12.18 lakh (Rs 1.21 million) on revenue of Rs 39.55
crore (Rs 395.5 million) the previous year.
In terms of revenue, Ola Cabs, backed by private equity funds Tiger Global and
Matrix Partners, has reported solid growth. Its Rs 51-crore (Rs 510-million)
revenue in 2013-14 was 219 per cent higher than Rs 16 crore (Rs 160 million)
the previous financial year.
Taxi For Sure, backed by Hellion Ventures and accel India, had revenue of Rs
4.29 crore (Rs 42.9 million) in 2013-14; Meru Cabs did not disclose its revenue
details.
There are 19 radio taxi operators in the country, including Mega Cabs, Easy
Cabs, Meru Cabs and Tab Cabs, according to the Association of Radio Taxis.
These operators run about 25,000 cabs across India, generating combined
revenue of Rs 70,000-80,000 a cab every month, the association says.
Of these, Easy Cabs is operated by Carzonrent (India), which also has other
businesses such as a personal ground transportation service. It offers short- and
long-term car rental solutions through its fleet of 6,500 cars.

Quick Cabs, which runs about 1,000 radio taxis in the National Capital region,
had not filed financial details with ROC till the filing of this report.
Lately, India’s taxi services market, despite its financial stress, has received
increased attention from global investors, primarily because of the fact that the
‘radio taxi’ model has emerged as the fastest-growing and most reliable form
of public transport for the world’s second-largest population.
There are about 600,000 taxis in India, generating combined annual revenue of
about Rs 11,000 crore (Rs 110 billion).
PRODUCT AND PRICING
Ola cabs provides different types of cab service:
Ola Prime — a business-class car service for luxury travel available in a few
cities offering bigger cars like Toyota Innova.
 Ola Sedan — a regular-class car service aimed at providing the customers a

spacious car for comfortable travel with cars like Toyota Etios.
 Ola Mini — an economic-class car service to serve customers looking for
affordable personal transportation with cars like Tata Indica.
 Ola Pink — a car service driven by a lady driver service lady travellers.
 Ola Auto — an auto service provided to the customers, removing the need
for haggling the price with the drivers.
 The cabs can be reserved through a web browser or a mobile app. This cab
service supports both cash and cashless payment options with Ola money. It
clocks an average of more than 150,000 bookings per day and commands 60
percent of the market share in India.
FLAT RATE
Non airport pickups and drops

Prime Rate
Category Minimum bill Extra km charges Ride time charges(for

entire ride)
Prime Rs 200 for first 5 km Rs 18 per Km Rs 2 per min
Extra charges
Peak Time Surcharge Surcharge may be applicable during peak hours

and will be conveyed during the booking.
Standard Rate
Category Minimum bill Extra km charges Wait time charges
Sedan Rs 150 for first 8 km Rs 13 per Km Rs 2 per min
Mini Rs 100 for first 6 km Rs 10 per Km Rs 2 per min
Airport rate
All airport pickups and drops.
Additional toll charge of Rs 75 will be applicable.
Standard Rate
Category Minimum bill Distance charges Wait time

charges
Sedan Rs 600 for first 30 km Rs 16 per Km Rs 2 per min
Mini Rs 540 for first 30 km Rs 13 per Km Rs 2 per min
Prime Rate
Category Minimum bill Distance charges Ride time

charges(for entire
ride)
Prime Rs 800 for first 30 km Rs 18 per Km Rs 2 per min
Ola Advantage
 First 10 min of waiting time is FREE (only for standard rates)

 No night charges
 Transparent pricing* Invoice mailed at the end of ride.
DEVELOPMENT AND PRODUCTION PLAN
Ola in an exclusive chat that the money raised would be used to aggressively
expand into new cities, categories and strengthen the cab aggregator's driver
ecosystem in a highly competitive market. The start up has raised around $65
million of funds in three rounds of institutional funding.
Ola, which works on the marketplace model, has 11,000 cabs across nine cities
on its platform and is said to be clocking 12,000 bookings per day, 50% of
which are through its mobile app. The need for quick and efficient point-to-
point transport is very large in urban India. Ola is the leader in addressing this
via technology, benefiting both consumers and drivers.
Ola is growing 30% month-on-month with Ola Minis seeing the sharpest
growth. Having started off by offering only sedans, Ola recently introduced
Minis and Luxury cars to broaden its portfolio. Ola Mini is 20-30% cheaper
than fares charged on sedans and competes with Uber directly.
The new entrants in the taxi service market work on the asset-light model
where, instead of owning the fleet themselves, they facilitate driver
entrepreneurship. Ola, in fact, helps drivers in financing loans at lower interest
rates for the purchase of their cars and has tie-ups with car manufacturers.
The overall Indian cab market, estimated at about $4 billion, has seen some
frenetic activity of late with VCs lining up top dollars to push transportation
start ups employing technology to disrupt the traditional taxi services business.
Ola cabs have raised Rs 250 crore of fresh funds, valuing the taxi service start
ups at over Rs 1,000 crore. This catapults the three-year-old company into the
big league of India's consumer internet story. India focused-hedge fund
Steadview Capital and Silicon Valley's blue-chip VC firm Sequoia Capital led

the latest round of fund-raise, which also saw participation from existing
investor Matrix Partners India and Tiger Global
Ola's valuation has more than doubled since November last year when it got on
board Matrix Partners in a Rs 120-crore fund-raise. It now joins the likes of
other consumer internet start ups Quiker, Zomato and Bookmyshow which
have crossed the Rs 1,000-crore valuation figure, this list does not include e-
commerce players such as Flipkart and Snap deal.
Ola has more than 33,000 registered users on its platform and it has seen 9 x
growths in monthly bookings in January-October 2014. It claims that Ola
commands 60 per cent market share in India, followed by Meru (16 per cent),
Taxi For Sure (14 per cent) and Uber (5 per cent).
Ola cabs are looking at an aggressive ramp-up to increase its presence four-fold
to 200 cities by the end of this year from 64 cities at present, according to the
source.
It claims to have 60,000 cabs on its platform serving two lakh customers daily.
The company has added over 15,000 cars to its platform in the last three months
and has launched operations in over 34 new cities during this period. It says it
has been adding over 1,000 cabs to the platform every day.
Ola’s mobile wallet was introduced in October last year and the company
claims that first-time users of this tool are growing at the rate of 40 per cent per
month.
The firm also began making auto bookings available on its platform in beta
mode across six cities in India including Bangalore, Mumbai, Delhi, Chennai,
Pune and Ahmadabad. Another new category that is currently in beta mode is
‘Ola Pink’, cabs driven by women drivers and is only for women passengers in
Bangalore.
Here’s what else happened in 2014:-
 We used to add around 10 cars a day and now we add 1000 cars a day.
 We have more than 60,000 cabs on the platform currently.
 We went from 15% market share to almost 70% market share.
 We started a completely new business with Kaali Peeli and Autos
 We also made huge gains on mobile, with almost 70% of our bookings coming
from mobile app, up from 20% last year

 Our app serves over 200,000 customers everyday

 Over 70% drivers on its platform are independent driver entrepreneurs
Recently Ola Cabs has bought Taxi For Sure which was valued at about $125
million for about $200 million
MARKETING PLAN
Calling a cab is just a tap away. Mumbai- based Ola cabs is among the first in
India to have launched an application that allows you to book a cab by just
tapping on your phone. Having gained traction in Mumbai, the company is now
expanding to Bangalore and Delhi.
With a few taps on the Ola cabs application on any of the android-based
phones, users can call a cab. The company uses GPS technology to let users
book a cab.
The company describes Ola cabs as a technology firm rather than a cab-services
firm. One of his ambitions is to be able to deliver a cab within 20 minutes from
the time of booking. For this, the company is making use of data analytics, so
that they can forecast demand for its services on a daily basis. Based on this
data analysis company is intended to provide service within 20 minutes of
booking. At present it is around 30-35 minutes. The company has a small team
managing the data analytics for better forecasting in Mumbai.
Since the company has become operational in Mumbai for more than a year
now, the company has generated enough data. Company also make use of
demographic details while evaluating a region. The demand visualisation is
done on a daily basis, so that accordingly we can have our cabs in areas where
demand is high at specific hours.
Unlike other radio cab services provider, Ola cabs are an aggregator of car
rental service. The company does not have any inventory of cabs. We have
focused on creating a technology platform that will act as an umbrella for small
car rental firms.
An Ola cab is addressing point-to-point cab services, outstation cab services and
full-day rental services. So far, Ola cabs have been successful in getting 600
suppliers on board with 1,000 cabs in Mumbai. In Bangalore where it started
services a month back, it has 100 suppliers, and Delhi which is still in pilot
mode also has 100 suppliers.

The company claims to do 2,000 bookings on a daily basis. We want to take this
to 3,000 per day by the end of this month. Almost 50 per cent of these bookings
come from its mobile applica. The new service will offer the same starting fare
as auto rick shows, that is, Rs 13 per km but with a base fare of Rs 100 for the
first six kms, making it the cheapest AC cab service available in the city. The
price point is so basic and 13 per km is extremely affordable. Someone who has
to take an auto will have to think twice now. With Ola the customer has a
hassle-free commute. With the touch of a button, a cab comes to your door,
takes you where you need to go. Not a single word, you pay your fare at the end
and go. Since the past three months we’ve had a great testing time.
Taxi aggregation company Ola cabs on Tuesday launched its low cost service
called Ola Mini across three cities and flagged off a new 'Business Class'
service Ola Prime, across six major metros.
Ola will offer AC compact cars like Tata Indica, Vista and Ford Figo under the
Ola Mini service. Customers can book the cabs online by calling Ola’s call
centre or through the Ola mobile app. With Ola Mini, customers will also get
the usual cutting edge services like the ability to book and track the cab through
their mobile phones, e-mailed receipts, accurate meter and well trained
professional drivers.
The launch by Ola Cabs signals a tough fight ahead for country's new age start-
ups such as TaxiForSure, Uber, Meru and Mega cabs who are eyeing for a share
in India's $6 billion taxi rentals market.
Bangalore based Ola has 18,000 cabs across 12 different cities along with three
different product lines. The 3-year old company has launched Ola Prime, a
business class service for customers with a fleet that will include cars
like Toyota Innova, Skoda Rapid, and Honda Civic etc.
The company has priced Ola Prime between Rs 17 to Rs 20 per km across
different cities, almost similar to the rates that Uber and Meru Cabs are charging
in various cities.
We have arrived at these offerings based on our understanding of travel patterns
in these cities over the years and the results derived from our analytics exercise
that brought to light the price points which different customers will find
attractive. The company announced the launch of the low cost 'Ola Mini' across
Mumbai, Chennai and Pune Ola Prime has been launched across six cities of
Bangalore, Delhi, Mumbai, Chennai, Pune and Jaipur.
In a bid to get users to experience cab services and bypass auto-rickshaws Ola
Mini has been priced at Rs 10 per km with a base fare of Rs 100, thus targeting
long distance city travellers, who rely typically on a bus or metro for local
transportation.

Ola Cabs, mobile application for cab bookings, has partnered with the famous
black and yellow cabs in Mumbai. With the new partnership Ola has included
black and yellow cab bookings on their mobile application. Presently, Ola has
tied up with a fleet of 2,000 cabs and will operate between Bandra west and
Collabra in Mumbai.
Currently we have partnered with 2,000 cabs, but down the line we have plans
to increase the fleet to 20,000 within the next six to seven months.”
For inclusion of the black and yellow cabs in their application, Ola Cabs has
provided smart phone devices to 2,000 drivers without any charge. Each smart
phone contains the Ola app which has been uniquely designed to book these
cabs. By using the cab, a customer can see all the partnered cabs around him, by
entering the location and confirming the request the drivers in the vicinity will
be alerted though the smart phone. Customers have a option of selecting the
normal black and yellow cab or a cool cab. The pricing for these cabs will be
the regular charges set by the government.
The Ola application is available on the Windows, IOS and the Android
platform.
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 kilometres, 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 Ola cabs 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.

Overcoming challenges
Today, the car rental industry in India is pegged to be at US $6 billion, growing

by 20 per cent annually. While this presents a huge opportunity for companies
such as Olacabs to grow in this space, it is also fraught with regulatory and
infrastructural challenges. As a first, there is no policy framework around the
market. We more or less created the market and that leaves us with the
responsibility of setting a high benchmark. Secondly, given that Ola relies
largely on mobile and Internet data to deliver customer experience and process
transactions, connectivity poses a challenge at certain locations across cities. To
tackle this, the company is in the process of developing alternate devices that
are less reliant on mobile and Internet data. The third challenge lies in the lack
of proper road infrastructure and connectivity. We don’t have a good mapping
system in place, so we have to rely on Google maps.
Like any other start up, Olacabs builds its brand presence by interacting with its
customers on social media and advertising on radio and other mass media. The
company, however, focuses most of its energy on the customer and its branding
activities are accelerated only when they launch in a new city.
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.
What Ola cabs has in store for its customers
Ola Mini, a series of hatch-back cars, with a base fare of Rs. 100 for the first six
km and Rs. 13 per additional km.
The sedan series, with a base fare of Rs. 200 for the first eight km and Rs. 18
for each additional km
Ola Luxury is priced at Rs. 250 for the first two km and Rs. 20 for each
additional km.
Best practices to build customer satisfaction in a service-oriented

business
Understand the pain point: In our case, while a customer expected a great
cab experience, we went one step further, integrated technology at every level
and innovated the on-touch booking experience through our mobile application.

Put the customer first: Ensure that the customer is at the centre of every
initiative and his/her experience is delivered to the best of your ability.
Offer a seamless experience: From the time a customer reaches out to you
till he receives his invoice, makes the payment and shares feedback, the
experience should be seamless. For us, consistency in communication across
our web, SMS and e-mail applications helps us achieve this.
Take care of your other stakeholders: In our case, the drivers and
operators are our stakeholders and they play a critical role in determining the
overall experience. Our vision of creating micro entrepreneurs in the driver
community and enabling business for them goes a long way in our customer
experience.
Always action feedback: Slip-ups will happen occasionally. Be quick to
accept, resolve and ensure it never repeats again.
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 more in 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 than Rs 16 crore the previous financial year.

ORGANIZATION AND MANAGEMENT

We are India’s first online aggregator of car rental services. We integrate car
transportation, be it point-to-point services within a city, hour-based rental
services or outstation travel, onto a technology platform, ensuring convenient,
transparent and quick service fulfilment for the customer. Not having our own
fleet actually works to our advantage. We only select cars which meet our
defined standards to be a part of our fleet. We also conduct regular service
audits, train and certify drivers and do thorough background checks of
both operators and drivers before partnering with them. Customers can
access us, on the web, through a mobile app or through a customer service
centre. Our customers vouch for the superior experience they have had.
The inventory utilisation among small cab operators (ownership of 2-5 cabs) in
India is an abysmal 40-50%. Cab owners benefit from the Ola Cabs network
and technology platform and that in turn helps them procure customers and
enhance their income through better inventory utilisation. In Mumbai, inventory
utilisation levels have gone up to 70% for cars that are on the Olacabs platform.
Olacabs provides convenient, transparent and quick cab services, both car rental
and point-to-point, by leveraging technology to provide a uniform and highly
customer-centric experience.
Our aim is to use technology to bring efficiency and superior customer

experience (in par with the hospitality industry) to the car rental industry. We
endeavour to bring convenience, price transparency and standardization to
consumers booking car rentals and cab services. There is also a freely
downloadable mobile app using which customers can book cabs and monitor
their position by the built-in GPS system. We have a dedicated customer care
centre to address all queries of our customers. Technology has enabled us to
adhere to the 10 minute service level agreement (SLA) which we provide to all
our customers.
We also use ‘heat maps’ to efficiently manage the demand and supply of cabs in
various parts of a city at different points in time. The traffic alerts using
information from various sources including social media help in guiding the
drivers to reach the destination in the shortest possible time. Both these help in
effective inventory management for Olacabs. We plan to scale quickly as we
have an asset-light and technology-focused business model. Also, with the
capital raised from Tiger Global, we plan to significantly ramp up our
technology infrastructure.

There are customers who use us multiple times for point-to-point services, in a
day. We intend to bring all car operators and taxis pan-India on to a single
technology platform to enable real time inventory distribution.
Thoughts on work culture

I devote a lot of time to hire the right people. We keep on looking until we’ve
found the right person. More than the skill match, we’re looking for the culture
match. Being a very aggressive company, it is not everyone’s cup of tea and
finding the right people is invaluable. Ola has a rather strict policy in terms of
recruitment and gives the employee a decent amount of time but if it’s not
working out, ways are parted in about 2 months time. If something isn’t
working, you can’t hang on to it. It’s better for both parties.
In April, Ola tied up with auto maker Mahindra & Mahindra to offer cars to
drivers and operators at discounted prices with suitable finance options .Ola is
supporting this driver to be an entrepreneur by helping him buy his own car and
invest in his training and development.
Ola has also introduced a "panic button", second layer of GPS security and is in
the testing phase for a female-only cab service called 'Pink' to ensure woman
safety.
Soft Bank-backed Ola currently serves more than 200,000 rides every day and
claims to be growing 40% month on month. The Bangalore-based company said
it is adding over 1,000 cabs to the platform every day and plans to expand to
over 200 cities by the end of 2015. Taxi For Sure, too, has the panic button and
GPS installed in cabs.
We have worked with Map my India for GPS systems and Sun Telemetric for
panic button installation in our cabs and also work directly with the government
for verification and documentation work. Taxi aggregators say they are willing
to go past the prescribed government standards to ensure safety.
Bangalore-based Ola Cabs has tied up with India’s largest lender State Bank of
India (SBI) to extend vehicle financing for its drivers under a new programme
called Ola Pragati.
Under the programme, SBI will offer car loans to drivers on Ola’s platform with
a daily repayment scheme as against the current practice of an EMI. Drivers on
the Ola platform will also benefit from lower down payment of just 10%, 24-
hour loan approval from SBI and easier documentation.

SBI says that it will provide loans at an average rate of 13% and the daily
repayment amounts would be about Rs 500- 600.It’s also reported that cars
financed by SBI will have GPS for enhanced safety.
Olacabs had initiated a similar program to fund drivers, but out of its own
pocket, in partnership with Milaap. The program involved sending a ‘message’
to the driver on Milaaps platform which would contribute Rs.100 towards
buying a new car.
At a time when the online taxi aggregation industry is struggling with high
demand and low supply, Bangalore-based Ola (previously Ola Cabs) on Friday
launched a daily loan repayment program for drivers, in association with the
country's largest lender State Bank of India (SBI).
Under the program, which has been named 'Ola Pragati', SBI will offer car loans
to drivers who work with Ola under a daily repayment scheme as against the
current practice of equated monthly instalment (EMI). The program will also
give the benefit of a lower down payment and faster clearance of loans for Ola
drivers.
Drivers who avail a loan under this program will need to continue working with
Ola for 60 hours a week for a stipulated period of time, depending on the terms
of their loan. If they choose o change the operator that they work with, their
loans would be converted into a regular car-loan with SBI.
As per the program, a driver can get a loan for a down payment of just 10%,
with an average interest rate of 13%. The loans under the scheme will be
cleared within 24 hours and the repayment amount for drivers is estimated at Rs
500-600 per day.EMI is best suited for the salaried class. Drivers have a cash
inflow on a daily basis and for them to pay a lump sum at the end of the month
is difficult. Ola expects at least 1, 00,000 driver entrepreneurs enrolling under
the Ola Pragati program in the next couple of years.
The company said that the daily payment mechanism gives the financing
institution better visibility of loan repayment and more lending comfort. The
program will work in sync with the daily settlement process of Ola drivers.
Ola currently operates in 67 cities and clocks over 2, 00,000 rides per day. The
company has launched several initiatives in the past to encourage drivers.
Recently, Ola had set up a fund of Rs 100 crore to enable drivers buy their own
cars and turn driver entrepreneurs. The company has run several initiatives in
the past two years to support drivers.

OWNERSHIP
Olacabs, founded in January 2011 by two IIT Bombay alumni Bhavish
Aggarwal and Ankit Bhati is India’s largest aggregator of car rentals and point-
to-point cab services. Olacabs integrates car transportation, be it point-to-point
services within a city, hour-based rental services or outstation travel, onto a
technology platform, ensuring convenient, transparent and quick service
fulfilment for the customer. Customers can access Olacabs, on the web, through
a mobile app or through a customer service centre. Currently, Olacabs currently
operates in Mumbai Delhi and Bangalore and is rapidly expanding to other
cities.
CRITICAL RISKS & PROBLEM
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
Ola cabs, 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.
SWOT ANALYSIS
STRENGTH WEAKNESS
 High Market share  Price competition from MERU

 Pan India footprint cabs, easy cabs etc.
 High degree Customer care  No significant product
services differentiation from
 Promotions competitors.
 High degree customer  Complaints of Booking
flexibility cancellations
 Boom in Smartphone and
internet capability
 Advanced location tracking
GPS system.
OPPORTUNITIES THREATS
 The fast extending market  High degree of new entrants

 Latest technology and low cost into market at a great pace.
advantage  Unexpected government
 Branding on social media regulations
 Untapped rural market

QUESTIONARIES OF OLA CABS
Q1) How often do you travel by taxi ?
a) every day b) every week
c) 2-3 week d) months
Q2) how do you noramally book taxies ?
a) call a taxi company b) taxi company website
c) taxi app d) online book
Q3) what is your average taxi journey time ?
a) less than 15 minutes b) 15-29 minutes
c) 30-44 minutes d) 45-59 minutes
Q4) Do you feel safe when getting a taxi on your own,during the day ?
a) yes
b) No
Q5) Do you like your taxi driver to engage in conversation with you ?
a) yes
b) No

Q6) Does your phone4 allow you to download apps ( e.g. iphone /android
devices )
a) yes
b) No
Q7) Do you have taxi application on your phone ?
a) yes I use it regularly b) yes ,but I

rarely use it
c) yes,but I have not used it d) no
Q8) Whether you have used a taxci app before or not ,which of the following
benefits appeal to you ?
Tick all that apply
a) don’t have to call b ) tracking

the taxi driver
c) payment via the app no(no cash changes hands ) d) taxi driver
ratings on the app
Q9) On the following sacle,how satisfied are your experiences using taxi apps ?
1=not satisfied , 5=very satisfied .
a) 1 b) 2
c) 3 d) more than 4

Ola versus Uber- A Comparision

category Ola Uber
2009 but started in India

Date 2010 in 2013
founder (Bhavish aggarwal) (Travis cordell kalanick)
Market India Worldwide
Availability in 102 cities 29 cities

India
Number of
vehicles in 450,000 250,000
India
Types of Cars and rickshaws cars
vehicales
Payment Ola wallet,credit/debit Payment

modes card and cash wallet,credit/debit card
and cash
Services Transport,food delivery Transport

and grocery
Aplication Easy to use but crashes at Easy to use
times


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A Project report on: Emerging Business of Cab Services in India : Ola cabs

Submitted By: Mr. Kiran KVSS

SL.NO PARTICULARS PAGE

2 BUSINESS IDEA AND OPPORTUNITY

4 MARKET OF THE ORGANISED TAXI

5 DEVELOPMENT AND PRODUCTION PLAN

6 CRITICAL RISKS AND PROBLEM

Submitted By: Mr. Kiran KVSS

Submitted By: Mr. Kiran KVSS

Name of company:- Ola cabs

Contact Details:-24x7 Call us (022) 33553355

Corp office: ANI Technologies Pvt Ltd

Company registration number:- U72900MH2010PTC240894, registered at

Date of Incorporation:-3 December 2010

Prospective Financer: - Tiger Global Management, Matrix Partners, Stead

Submitted By: Mr. Kiran KVSS

Submitted By: Mr. Kiran KVSS

Submitted By: Mr. Kiran KVSS

BUSINESS IDEA AND OPPORTUNITY

Submitted By: Mr. Kiran KVSS

Submitted By: Mr. Kiran KVSS

Submitted By: Mr. Kiran KVSS

Submitted By: Mr. Kiran KVSS

Senior Management Hires:

Unique Marketing Initiatives:

MARKET OF THE ORGANISED TAXI SECTOR IN INDIA

Submitted By: Mr. Kiran KVSS

Phase 1 – Fully Owned Fleets

Phase 2 – Fleet Aggregation Model

Phase 3 – The Hybrid Model (Current Phase)

Submitted By: Mr. Kiran KVSS

THE ROAD AHEAD

Submitted By: Mr. Kiran KVSS

Submitted By: Mr. Kiran KVSS

PRODUCT AND PRICING

Ola cabs provides different types of cab service:

 Ola Sedan — a regular-class car service aimed at providing the customers a

Non airport pickups and drops

Submitted By: Mr. Kiran KVSS

Category Minimum bill Extra km charges Ride time charges(for

Prime Rs 200 for first 5 km Rs 18 per Km Rs 2 per min

Peak Time Surcharge Surcharge may be applicable during peak hours

Category Minimum bill Extra km charges Wait time charges

Sedan Rs 150 for first 8 km Rs 13 per Km Rs 2 per min

Mini Rs 100 for first 6 km Rs 10 per Km Rs 2 per min

Category Minimum bill Distance charges Wait time

Sedan Rs 600 for first 30 km Rs 16 per Km Rs 2 per min

Mini Rs 540 for first 30 km Rs 13 per Km Rs 2 per min

Category Minimum bill Distance charges Ride time

Prime Rs 800 for first 30 km Rs 18 per Km Rs 2 per min

 First 10 min of waiting time is FREE (only for standard rates)

DEVELOPMENT AND PRODUCTION PLAN

Submitted By: Mr. Kiran KVSS

Here’s what else happened in 2014:-

Submitted By: Mr. Kiran KVSS

 Our app serves over 200,000 customers everyday

Submitted By: Mr. Kiran KVSS

Submitted By: Mr. Kiran KVSS

Making all the difference