Smt.

kesharbai Lahoti Mahavidyala

,Amravati.

Project Report
On
OLA & UBER
In partial fulfilment for
The requirement of
Subject :-E-Commerce

-:Submitted by:-
Miss. Janvi Notawale
Miss. Vaidehi Joshi
Miss. Ketakee Muley
B Com III year (Sec. D)
-: Under the Guidance of :-

Prof. Rachana Rathi

Smt. Kesharbai Lahoti Mahavidhyalaya

Amravati
 CERTIFICATE OF GUIDE
This is certify that
Miss .Janvi Notawale
Miss. Vaidehi Joshi
Miss. Ketakee Muley
B. Com III Year (Sec .D)
has completed the project report on

OLA & UBER

Under my satisfactory guidance the conclusions are based on

data
Collected by the student during their training

Date: 13 / 12 / 2022
Place: Amravati

-: : Principal :- -: Guide By :-
DR. V.L. BHANGDIYA Prof.Rachna. Rathi

Smt. Kesharbai Lahoti Mahavidhyalaya

 Content
OLA
1. Introduction
2. Swot analysis
3. The history of ola
4 .Market Share of Ola and
Competition
5. Present growth
6. Financial plan
7.How does ola make money
8. Problem statement
 UBER
1 . Introduction
2 . History
3. Uber's revenue
4. Sailent features of uber
5.Management structure
6.Broad service portfolio
7.Financial model of uber
8.Financial Report
9. Uber competitors
10.Uber vs Lyft drivers
11.Swot analysis
12. Reference
Introduction:
Ola initially started off as Olatrip.com a small website venture that offered
weekendtrip packages.It was started as startup busi
ness by two IIT Mumbai graduates Bhavish Aggarw
al 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%.
 Founded 3 December 2010
Founder Bhavish Agrawal, Ankit Bhati
Number of employees 3000 (2020)
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:
 Ola is 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.

 Financial condition of the company has improved after investments by

various firm

Weaknesses:
  Brand image can be easily influenced by the misbehavior of the drivers as
they are the ne indirect contact with the customers

 Monetization becomes difficult due to the demand.

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

 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.

 Disposable income can be increased.

 Convenient services create huge demand among customers.

 Acquisition of smaller company of the market.

Threats:
 Increasing competition.

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

 Presence of competitors at the national level.

 No specific regulatory body of the government.

 Customer loyalty is rare in this segment.

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%
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 IIT 6!
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 are negotiation
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 that were looking for a quality cab
service, but ended up with a one that stood them up, arrived and dropped them
off late 7 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 Ola Cabs. 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 Ola Cabs 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 40lakh 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
Taxi for sure (14%), meru cabs (16%), uber (5%) and others (5%). Taxi for sure was
acquired by Ola who 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 ind
eed faced by manycompetitions 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 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 across100
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 Rs 12/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. Ola Cabs bought Taxi For Sure 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 Soft Bank, ABG Capital, Accel Partners, Mauritius Investments, Tiger
Global Management, Matrix Partners, Stead view Capital, Sequoia Capital and DST
Global. Their current valuation is roughly $3.5 Billion.
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 Stead view Capital, Sequoia Capital and its existing investors.
In Series D round of funding on Oct 25, 2014, it raised$210 million from Soft Bank
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 16crore the
previous financial year.
 How does Ola make money :

1. Trip commission
Ola charges percentage commission from the trips being carried out through its
platform. It charges trip fares from customers through several factors (below),
some of these factors are applicable based on location, car type, etc.

 Base fare – it’s an initial flat fare

 Distance per km Fare – is charged based on distance traveled per km, after initial
fixed fare distance (differs from car to car and geographical location)
 Ride time fare – A fare charged based on the total time of the trip from pick up to
drop off. Customers will be charged based on travel time in minutes.
 Wait time fare – is imposed if the driver had to wait
 Peak Pricing – During high demands for cabs, Ola increases the rates per km. It
may also increase the rate of slabs depending on the type of car to generate more
revenue. Your charges will vary according to the car you have selected at the time
 of booking. These charges include a fixed rate per km, per km travel charges and
driver’s waiting time.
 Advance booking fees – there is an advance booking fee that is charged on all
rides that are booked for later use.
 Access fees – it’s a fee for auto rides
 Convenience fee – its applicable to ride that provides in-cab entertainment
 Airport fees – surcharge fees are charged in case of airport pickup/ drop off
 Tool and parking fees – it’s based on the usage, when applicable
 A cancelation fee may be charged for canceled rides in certain conditions (fees
vary as per rides and regions).
 Service Tax – is also charged on the entire trip fare
Once the travel fare is charged to your Ola Money Wallet, it will be credited to the
driver’s account. If it is paid in cash, the same amount will be deducted and
included in driver’s payment for the trips he has conducted.

Moreover, Ola deducts the service tax from customers’ payment firstly. Then, it
charges commissions percentage. Finally, it pays the remaining amount to the
driver’s bank account within 2 working days.

An estimated commission that Ola charges per trip:

 Introductory promotion: 7.5 % commission for new drivers for a limited period
 In India: Ola charges about 20% commission
 In the UK: Ola charges 10% for metered taxi and 15% for Private Hire Vehicle(PHV)
 In New Zealand: Ola charges about 18% commission


2. Ola Money
Ola has also introduced its money wallet just like PAY TM wallet and Free Charge
wallet. Through Ola’s virtual wallet service, payments can be made at various
vendor touch points. The wallet also incorporates its own services of cab-hailing
payments. This contributes to the revenue of Ola.

3. In-cab promotions and advertisement commissions

Brochures, pamphlets, or other advertising tools are given to commuters. Live
streaming ads from different advertisers are played to promote different
company’s products and services. Ola charges commissions for these promotions.

4. Cab leasing program

Ola has started a cab leasing program for its driver partners. It buys cars and leases
them out to drivers to enhance the loyalty of drivers towards Ola.

There is an initial fee of Rs 4000 non-refundable fees and Rs 21,000 –

31,000 refundable security deposit. Also, a fixed daily fee amount of Rs 700 -
1150 is charged to the drivers for running the vehicle while the travel fare revenue
goes to the driver. So, it can be an aggregate of both fixed fee and trip-based
commission. In March 2020, Ola waived lease rentals for drivers under its leasing
program to help them recover from market uncertainties. Drivers were also
demanding Rs 10,000 as an interest-free loan.

5. Ola Credit Card

Ola has introduced a credit card “Ola Money SBI Card” in
association with SBI and Visa. The card offers many benefits
and rewards to its consumers.

6. Corporate accounts
Ola performs several business meetings with the heads of various organizations
where they promote Ola and convince corporate managers and employees to use
Ola cabs for their business travels. Reduced rates are charged from these
corporates as demand increases. With these B2B tie-ups, Ola earns a higher sales
volume.

7. Delivery service – Food Panda

With Food Panda acquisition, Ola successfully entered into online food delivery
segment. Ola is expected to take on Uber Eats and Swiggy, increase its profits, and
thus develop a strong position in the food delivery market soon.
Problem 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 app sturned 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.
In recent years, a concept known as the ”sharing economy” has taken the market by storm, giving
rise to a number of truly revolutionary businesses. While a number of companies have cashed
in on this trend, the sharing economy’s undisputed king is Uber as a ride-sharing company that
empowers anyone to start earning money with their vehicle and enables those needing a lift to
quickly and affordable to find a ride. The amount of success Uber has been able to achieve in
their short history is remarkable.Uber’s disruptive technology, explosive growth, and
constant controversy make it one of themost fascinating companies to emerge over the past
decade. The almost ten-year-old companysoon grew to become the highest valued private start
up company in the world.

Founders: Travis Kalanick and Garrett Camp.

Company Headquarters: San Francisco, California, United States.

Funding received by Uber: $22.2 Billion. (as

of December 2017).

Company Valuation: Over $70 Billion.

Number of Users: More than 50 Million.

Number of registered drivers: Approximately 7 Million (as

of November 2017)

Average numbr of daily Uber Trips: 1 Million

History
Uber was first founded in 2009 by Garrett Camp and Travis Kalanick under the name
Uber Cab.At the time, Camp had recently spent 800 dollars hiring a private car to
transport him and his friends on New Year’s Eve, and he was trying to figure out a way
he could make the service more affordable to the average person. C

amp
reasoned that allowing multiple people to share the costof the service would drive it
down, and Uber Cab was born.
In 2010, a man named Ryan Graves responded to a tweet sent out by Travis Kalanick and be-
came the first Uber Cab employee. He was made a general manager and was given between 5-
10percent of the company. Not long after, he was named the company’s CEO.

In 2011, the company’s name was shortened to Uber, and in 2012, Uber rolled out Uber X - a
service which allowed people to work for Uber driving their own car. Since then, Uber has
beenon the cutting edge of a number of transportation services and technologies, from self-
driving cars, to a carpooling service, and even a helicopter service.

Today, Uber operates in 300 cities across 6 continents, and in 2016 Uber grossed 20 billion
dollars. Interestingly enough, Uber actually lost 2.8 billion dollars on that 2016 gross,
showingjust how committed the company is to continuing to push the envelope and develop
new servicesand technologies that will revolutionize the transportation industry.

While a lot of factors played into launching Uber into the level of recognition and success the
company enjoys, one of those factors was the ever-recognizable Uber logo.
 How Uber works

Step 1: A rider opens the app:

The rider enters their destination, can see wait time, car sizes, and price; then confirms their
pickup location
n and taps Request.
Step 2: The rider is matched with a driver:
A nearby driver sees and chooses to accept the rider’s trip request.
The rider is automatically notified when the driver’s vehicle is about a minute away.
Step 3:The driver picks up the rider:
The driver and the rider verify each other’s names and the destination. Then the driver starts
the ride.
Step 4:The driver takes the rider to the destination:
The app gives the driver the option to access turn-by-turn directions, so the driver can focus
on getting there and the rider can focus on enjoying a comfortable ride.
Step 5:The driver and rider leave ratings and reviews :
At the end of each trip, drivers and riders can rate each other from 1 to 5 stars. Riders can
also give the driver compliments. In cities where tipping is available, they can also add a
little extra to show their gratitude.

Model:
If you have ever travelled in a taxi, you might have paid the driver in cash at the
end of your journey. The cash collected by each journey is the only source of
revenue for a traditional cab company. Uber is no different. Neither does Uber
have a different revenue model than the one mentioned above nor it has any other
source of revenue as of now. But just imagine 1 million rides a day. It will help you
calculate those big numbers that the company earns. Let’s dig a littledeeper to
understand Uber’s source of income.
What has made them so successful is the fact that the revenue model is as unique
as their busi- ness model. It can be explained as:
Different cab models to cater to everyone:
Uber has not limi tself to a particular segment of car sort of a particular segment
of people. There is Uber X, Uber Black for those who love to travel in a black car,
Uber Taxi for those looking for cost-efficient solutions and Uber SUV for those
who want luxury.
Surge Pricing Technology:
Variation in cab fares according to situation is an important aspect of their
business model. Whenever the demand increases, per mile prices are
automatically increased. The new price
dependsonthenumberofavailabledriversandthenumberofrequestsmadebypeople
who want to travel. It has applied for a price surge technology patent in the US.

Other Uber rides:

Uber has come a long way from cabs. It now offers boats, helicopters as well as
some other
transportation means on demand. They recently launched a motorcycle-pickup
service in Paris, a delivery service in San Francisco, and an ice-cream-truck-
delivery service in a few cities too. However, these means are available in selected
geographical locations but it has led them to add new streams of business
revenue into its business model.
• A user can tap his smart phone and call a cab at his location or could also book a ride
in advance.

• One can have SMS, Email alerts, Notifications to Passengers.

• The customer can track the driver as he arrives to his location. The driver can also track
theexact location of the customer and reach his exact location.

• The payment procedure is handled by them. In some countries like India, they have
even started accepting cash payments which are paid directly to the driver. Its
Automated gener-ated e- receipts.

• Can get Travel History, has Multilingual support

Management structure
 Its comprehensive range of services under transportation , namely Uber Go,
Uber X, Uber XL etc. and the most famous and economical one Uber PoolWith
GPS enabled app-based tracking system has helped the company
in making it convenient to book a cab. It also provides other services such as
delivering food items ,Freight etc.

Transportation services:

● Uber-Moto: This service allows people to book bike rides and roam aroundthe
city at the cheapest rate possible.
● Uber Go: This perhaps is the most widely used Uber service. You can book
your own car and travel from one place to another while accessing Wi-Fi.
● Uber Pool: This is the car-pooling facility that lets you travel with other
travellers going in the same direction as yours. This is cheaper and helps in
reducing the number of cars on a road.
● Uber X: It is the company’s most common Uber ride option. It is available in
Most destinations globally and is what many people picture when they
Consider calling an Uber. The service most closely resembles a standard taxi .
You call the ride and the driver will make you and your party of up to three
 others to your chosen destination. If each passenger has a different port of
call, you can add multiple stops to your Uber ride, too.

● Uber XL: While the Uber X service can only accommodate four people, UberXL
allows you to transport up to six passengers.

● Uber Select: This service, also known as Uber Plus in some locations, offers
cars that are a step up from Uber X options. With this ride, expect to be picked
up in an Audi, BMW, Mercedes, or similar class of vehicles, with support for up
to four riders

Uber Health
Uber Health is a HIPAA-compliant technology solution for health care organizations
that leverages the ride hailing power of the Uber platform. The web-based dashboard
allows hospitals and other health care professionals to request, manage, and pay for
rides for others,at scale.
Healthcare organizations are using Uber Health to help get people to and from the care
theyneed, and to get staff to and from work.

Uber Health
Additional uber ride type

● Uber WAV : If you use a wheelchair, you’ll know that transport options around
the world are not only limited but very rarely set up to accommodate your
needs. Most Uber cars are not suitable for wheelchairsor mobility scooters. So,
if you need to take a ride with your wheelchair, then Uber WAV is your best
bet. According to Uber, all the Uber WAV drivers are certified by a third – party
for driving and assisting those with disabilities.

● Uber Car Seat : Travelling with a young one can be stressful experience,
not least because you’ll likely need to strap them into a car seat. Most Uber
ride types don’t offer car seat, and their vehicles may not even support
attaching one, either. If you find yourself in need of a safe ride with your
child, then one of your best options is Uber Car Seat.

● Uber Ski : As anyone who’s been skiing can confirm , skis are awkward to
transport. Most buses and public transport at ski resorts even have specialised
storage for your skis or snowboard. If you need to hail a ride, but also want to
take your skis with you, Uber Ski is your best option.

● Uber Pet : As the name suggests, Uber Pet is the most suitable Uber ride
type for those with pets. Although you could call a standard Uber X, most
drivers would refuse your pet entry to their vehicle, and they aren’t obliged to
allow you to ride with them. So, for reliable, hassle-free
journey with your beloved pet, select the Uber Pet option where available.

frieght
Launched in 2017, Uber Freight connects truck drivers to shippers looking to
move freight in the same way that its ride-hailing
business connects drives with people looking for a
ride. Uber Freight only makes up a small portion of
Uber’s total revenue, or about 9% during 2020. But it
has grown up to 38.3% from 2019.
Food delivery services
Uber Eats : Uber Eats is an American
online food ordering delivering platform
launchd by Uebr in 2014and base in San
Francisco,California

How uber eat works?

Uber is basically a transportation network company (TNC) offering services

including peer- to-peer ride sharing, ride service hailing, food delivery and a bicycle-
sharing system which is the basic source of income for the company. The Uber app
gives riders a predetermined cost of the ride before actually confirm the ride. Uber
uses a dynamic pricing model that is the prices for the same route vary based on
the supply and demand for rides at the time the ride is requested
 Uber net revenue, millions of USD

Ubers gross revenue has been growing steadily since the beginning of 2017.

 In 2014, Uber reported a loss of 671 million on 495.3 million dollars of revenue. In 2015,
Uber’s revenue grew to an estimated 1.5 billion dollars.
 In 2016, Uber reported a 2.8 billion loss.
 In 2017, losses grew 60 percent to 4.5 billion.In 2018, Uber reported a 1.8 billion loss

UBER competitors
Uber vs Lyft vs Grab vs Didi Chuxing
Uber was the first mover in terms of ride-hailing apps. Chief among its rivals are Lyft, Grab, and
Didi Chuxing. The first operates solely in the US market (and a tiny part of Canada), while the
latter two operate in the lucrative Southeast Asian and Chinese markets respectively. Didi Chux-
ing controls 90% of the market in China.

While Uber’s key focus is on North American market, the global ride-hailing market is
concen-trated in Asia.

Uber controls 46% of the market in India - the world’s third-biggest.

Lyft is the only true direct rival in the US, with local operators Didi Chuxing and Grab
operating in markets in which Uber does not have a significant presence - in both cases
because business was sold to the local rival.

User and driver ratings play a big part in the ride hailing experience. In this respect,
Lyft can claim the edge over Uber, with scores of 4.8 on average, compared to 4.4. A
normal taxi ride islikely to average a mere 4.0

UBR VS LYFT DRIVRS

In a survey of 1,200 drivers conducted in early 2018 found that over half of US ride-
hailing app drivers only used Uber - not too far under four times those who used only
Lyft. One in five re-ported using both.
OLA VS UBER
Strength
1.Dominant leadership position :
Uber has dominated the ride hailing market operating in approximately 83 countries
and over 674 cities worldwide with over 77% share of the US ride hailing market. As of
2017,the company’s customer base rose to 40 million per month (Dogtieve 2018). First
mover advantage has given it an opportunity to capture the biggest share of the ride
sharing indus-try.

2.Big brand name and:

Uber has become the world’s biggest ride sharing service operating in more than 83 coun-
tries and 674 cities globally. As of 2018, the company commands 73% share of the market
awareness in USA (Statista 2018). This is in line with a consumer survey in the US that
showed 76% of ride hailing app users used Uber more frequently compared to 10% for
main rival Lyft.
Another 70% surveyed, who hadn’t used the company’s services stated they were familiar
with Uber brand name (Kulkarni 2017).

3.Adaptive :
Uber is also known to adapt very well to business conditions. Because of its
international exposure, Uber faces various problems in various regions. Uber is known to
be a smart mar-keter and has adapted very well wherever it has established its business.

4.Convenience, ease of use and low costs :

With its different services, Uber has made its services easy to use with a press of a
button in the mobile app and the closest driver to your location will be hailed. It is thus
easy to use and also affordable for different classes of people, which has increased its
customer base and market share. According to research, most of the customers who use
Uber services have mentioned price, easy of use and convenience as their top reasons for
using the service(Kulkarni 2017).

Weakness

1.Sexual harassment accusations :

According to a report by CCN, at least 103 Uber drivers have been accused of sex abuse
by clients in USA in the past four years (O’Brien et al., 2018). As the most valuable pri-
vately held tech start-up in the world operating in over 630 countries, the sexual
assaults have ruined its reputation in some US geographies with many women turning to
other ride hailing services like Lyft. Similar incidences have been reported in India where a
rape charge against an Uber driver in New Delhi led to its temporary ban (Gordon 2015).

2.Highly dependent on Internet :

Uber is heavily dependent on internet connectivity to expand and develop itself in
devel- oped countries. Thus, it is facing problems in developing and emerging countries
where internet is slow or poor.

3.Falling market shares :

As of 2017, Uber’s market share fell from 84% to 74% while Lyft’s grew from 20% to 22%
mainly because of the various scandals and the delete Uber campaign (Bhuiyan 2017).

4.Highly Dependent on Manpower :

Drivers arethefaceofthecompanyandthusthecompany’s imagedependsonthebehaviour
of drivers towards the customer. This is a highly uncontrollable situation even though
strictguidelines are provided to the drivers.

Opportunities
1. Increasing internet penetration :
With Government’s move to digitize India, Number of smart phones are increasing and
technology based applications like Uber can expand their services to other cities and en -
large its footprint over the country.

2.Partnership with hospitality brands :

Uber can partner with hospitality and hotel brands to serve millions of tourists who reg-
ularly need taxi services while staying at a hotel.

3.Rising Disposable income :

With rising disposable income, customers are willing to spend higher on convenience. The
growing income of the middle class consumers globally has also proved profitable for Uber.

4.Caters only to Tech Savvy individuals :

Digital Literacy in developing nations is low and hence technology based applications such
as Uber only cater to those who are technologically updated.

Threats

1.Government regulations are unclear :

The primary point of disagreement between cab aggregators and government regulators isabout
their legal status and whether they should be treated as conventional taxi companiesor as IT
companies.

2. Customer retention and brand switching :

As competition rises, it becomes all the more difficult to retain customers and drivers for
Uber. Any monetary advantage can sway the customers and drivers from Uber.
3. Low margins :
Uber helps the drivers to get a high number of daily rides but it does not have a high-profit
margin for the drivers and thus they can easily be swayed away.

4.Revolt from unorganized market :

The unorganized market of cab drivers can revolt against such companies which are taking away
the bread and butter of drivers from unorganized market. Such a revolt will directly affect the
operations of a brand like Uber

 UBER Website
https : //www.uber.com/in/en/

 Uber App Features

http : //www.allrideapps.com/taxi − app − feature − list/

 https://www.managementstudyguide.com/financial-management.htm

 https://www.toppr.com/guides/business-environment/business-
functions/financial- management/

 Wikipedia