Ola vs.

Uber
Gautham A
Parvinder Singh
December 2014
Devendra N
Performance Benchmarking : Compare one industry with other on the basis of some
performance parameter such as Financial , Number of complaints, sales etc.
Network Size

Ola has ~550,000 drivers in its network; more than ~412,500 or ~75% log in
daily
Ola number of registered drivers in network and % logging in

Total registered 350,000 200,000 ~550,000

drivers ->

10%  In Metros, the drivers who don't

25% login are often absentees who
40% would have taken a break on
Not logging
account of working extra hours the
in
previous day

 Poor awareness and low demand

90% is the reason why % of drivers
Logging in 75% logging is lower in smaller cities
daily 60%

Metros Other cities Overall

1. Note: The above numbers are excluding Ola Auto

2. Metros refers to the top 7 cities including Pune

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Network Size

Uber has ~350,000 drivers in its network; more than ~245,000 or ~70% log in
daily
Uber number of registered drivers in network and % logging in

Total registered 215,000 135,000 ~350,000

drivers ->

10%  In Metros, the drivers who don't

25% login are often absentees who
40% would have taken a break on
Not logging
account of working extra hours the
in
previous day

 Poor awareness and low demand

90% is the reason why % of drivers
Logging in 75% logging is lower in smaller cities
daily 60%

Metros Other cities Overall

1. Note: The above numbers are excluding Ola Auto

2. Metros refers to the top 7 cities including Pune

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Rides delivered

Ola delivers more than ~3.5X rides per day as compared to Uber

Average rides delivered per day

May 2015 estimates

250,000

70,000

1. Note: The above numbers refers to the confirmed rides delivered only

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Rides delivered

Ola delivers more than ~3.5X rides per day as compared to Uber

Average rides delivered per day

May 2018 estimates

 For Ola, around ~75% or ~1,012,000

1,500,000 rides delivered per day in top 7 cities
(metros) and ~85% of the rides were
delivered in the top 10-12 cities

 Ubers's rides per day have been growing

rapidly at 30-40% m-o-m driven by its low
priced UberGo versions

 Additionally, the growth has been driven

785,000 by Uber's Kolkata launch as the city has
been one of the fastest growth areas for
Uber in India

“ Ola’s average daily rides are growing at nearly ~10%

m-o-m for the last few months. ”

Ola Uber
“60-70% of all Ola rides are delivered are in Ola Mini,
25-30% in Sedan and ~5% for Kaali Peeli and Prime”

1. Note: The above numbers refers to the confirmed rides delivered only

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GMV

Ola’s GMV is ~4X that of Uber; its average fare is expected to stabilize near
the ~USD 4 mark going forward
Average fare and GMV(Gross Merchandise value)

Parameter
 For Ola, average fare varies by car type

 Ola Mini average fares are ~Rs 200

Average no. of rides (USD 3.3 ) while it is Rs 300+ (~USD 5 )
delivered per day
1,500,000 785,000 for sedan

 Average fare in smaller cities (Tier 2+) is

~ Rs 280+ and the cabs in these cities
INR 255/USD are used for airport/railway station drops
Average ride fare INR 235 /USD 3.9 and rarely for short commutes
4.3

Monthly GMV (USD

mn)
~193.5 ~91.8

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Forecasted expected ride volume

Ola v/s Uber Mobile Application rating

J W Library Ola Uber

App ratings
90

88

86

84

82

80

78
User reviews Driver Ratings Managing trips Points of interest
Ola Uber

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Forecasted expected ride volume

Ola expects its rides per day to grow to ~1.5 million by 2018

Growth in rides per day for Ola

Rides per day averaged for a month

Growth drivers in Metros

1100000  In Metro cities, the average rides delivered per logged
in driver per day is expected to grow only marginally to
~4 over the next 1-2 years from the current ~2.8

 The bulk of the growth in these cities is likely to be

driven by addition of new cars rather than rapid growth
in rides per day for existing drivers
450000
 Certain drivers in metros who have been logging 8-10
rides per day have missed work the next day citing
250000
fatigue and Ola is seeking to remedy this situation by
adding new cars

Growth drivers in smaller cities

May-15 Dec-15 Dec-17  In the smaller cities the average rides per day for Ola
for a logged in driver is 1.1-1.2 which is very low

 Ola is focusing on increasing this number to ~3 by

2017-18

 Additionally, Ola is looking to expand into 200+ cities

over 2016 and also offer other cheaper car optionslike
Nano etc. in smaller cities soon to drive growth

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Customer metrics

~2.5-3 million unique customers took an Ola ride in Jan2018 with 2.7 average
rides per customer
Customer metrics for Ola

Parameter Value for Ola

Total rides delivered in  Average rides per customer is

>7.5 million
Dec 2017 gradually increasing as the share of
repeat customers keeps on growing

Unique customers taking  The high share of repeat customers is

ride
2.5-3 million seen by the Ola Money usage as
well, as more than 50% of the
bookings are being paid for using Ola
Money
Average rides per customer
per month
>2.7
 Uber has a higher share of repeat
users at 55-60%

% Of repeat users (from a

previous month)
>50-55%

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0
Customer metrics

The vast majority of Ola rides are being spot booked through the app

Split of Ola bookings

250,000 250,000
 Ola has stopped promoting its
advance booking option

 Uber only has the spot booking

option
Spot
booking
 Uber and Ola gets 100%
85- bookings through app
100%
App 90%
 Ola implemented innovative
ways to close the gaps. Ways
Advance such as Ola Auto, Ola share and
booking has first movers advantage
10-
15%
By booking channel By booking mode

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Customer and driver incentives

Both Ola and Uber are giving various incentives to both customers and
drivers to drive growth…
Customer and driver acquisition incentives

Parameter Ola Uber

 Rs.100/50 off for first ride and by sharing the app link

Customer  Besides this, Ola also has tie ups with various entities e.g.  First ride free and sharing the
acquisition with Hard Rock café where a customer gets a certain app link with friends/family will
incentives discount at HRC is he uses Ola avail a free ride for both

 Also, for customers using the app regularly, Ola offers

appiness day where loyal customers get free Ola Money

 Depending on city to city, an additional payment of Rs. 70-

100 per ride is made to the driver
 Uber is giving Rs 150-180 per
ride over and above the billing
 Also, Ola drivers get Rs 2000 if they manager to achieve >5
on an average (varies by
rides per day in metros
Driver acquisition cities)
incentives
 City managers have a lot of control and have the freedom to  Also, Uber drivers are getting
design driver incentives based on the local trends Rs 3000 for a 12 hour login
(varies by city)
 In certain smaller cities, drivers get Rs 3000 rupees if they
login for 10 hours

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Driver initiatives

…with Ola especially looking to focus on driver acquisition and loyalty

through its Ola Star program
Ola Star driver loyalty program
Program description

 Ola has been working on a program to drive driver loyalty and driver emotional connect and this program is called 'Ola
Stars'

 Ola is providing multiple non-cash benefits to the drivers by tying up with multiple vendors to get bulk discounts and then
providing various merchandise/services like white goods, insurance services, gold coins, mobile talk time, garage
services, grocery etc. to the driver

 For example instead of giving Rs. 100 extra per ride to the driver, Ola will give him Rs 70 and also Rs 30 worth of
talktime.

Expected impact and future plans

 The Ola stars project is driven by the fact that the Ola management understands that the current cash
burn levels are unsustainable and is looking to reduce the same

 By offering non-cash incentives, Ola can avail bulk discounts from the various vendors, which would
reduce its cash burns

 The Ola stars scheme has seen a good response in Bangalore and is likely to be rolled out to other
metros over the next 3-4 months

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Gap Analysis for Uber

Gaps Identified:
 Safety concerns
Present State: Future State:
 Low recreational activities
 Low innovation and diversification
1. Currently operations 1. Currently operations
exist in 30 cities exist in 60 cities
2. 2nd in market share 2. Increase in market
in Cab aggregator share in Cab
space Recommendations: aggregator space
3. Revenue  Uber Play and in car automated
3. Revenue approximately
approximately $ 91.8 entertainment $ 150 mn per month
mn per month  More innovative solutions such
as Uber Eats
 Expansion in Tier 2 cities
 EV segment considering
government stances a head
Thank You!
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