Managing and growing a successful startup is ripe with challenges from all sides – from keeping
employees and investors happy, to raising money and constantly improving your bottom line.Not every start-up is bound for success. In actuality, getting money from an investor is no easy feat, but when you know what states are the most investor friendly, what investors are looking for and how to build a powerful team around your organization then you are much more likely to find start-up success. Ola Cabs, more popularly known as Ola, is just like any other marketplaces online, but more specifically into providing Taxi services. Ola, which started as an online cab aggregator in Mumbai, now have headquarter in the Silicon Valley of India a.k.a. Bangalore and is also known to be one of the fastest growing businesses in India out-beating its competitors Uber & Meru.
Bhavesh 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 Ola cabs.
How he got Idea
Once bhavesh travelling from Bangalore to Bandipur in the middle of ride taxi driver demands extra fare and he refuse to give so driver removed him there and ran away, from this experience he got known about arrogance of taxi drivers, their limited availability and price control so he come up with an idea which known as Ola cabs
Early Life
Initially like normal parents his parents are not show support till he got first funding from Snapdeal founder Kunal Bhal. Ola started with zero model in 2010 initially they don't used their own car but used third party car those Indian citizens have permit from transportation authority can do business with Ola it only operates in Mumbai at early stage customer needs to informed about trip by calling the call center of Ola cabs and then give the information then after checking availability their trip confirms for later when android gripped the market Ola cabs also made their application.
Business Model
Ola cabs give clients to book cab from various platform. Prior, who book from their application. The drivers have an adaptability to choose their own particular time to login to OLA Application and acknowledge demands for rides from clients .Ola give them facility to logged off if they don't need. The main source of income for OLA is the commission for every drive. The individuals who work more get incentives. These companies don’t own cars nor do they employ the drivers,
they simply connect with the drivers through the application. They are the technology driven market place. Ola is a tech company and with some strategies it is growing at speed of light
Market Share
As Ola has a market share potential of 60% in India. The other competitors in the
market which fall under the organized segment include Meru cabs(2%), Uber(35%) and
others(3%). In 2015 Taxiforsure was acquired by Ola at $200 million which further increases its market share to about 74%and then shuts off its operation after 18 months of acquisition. 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 indeed faced by many competitions 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.
International Business
Ola currently operating in Australia, UK and New Zealand. When Ola went international to start operations in Australia in February 2018, the team was proud to be an Indian-startup-overseas. The team expanded the international ops of Britain and New Zealand. Fighting for over a year to gain a foothold in international waters, the company drew attention to its business in India, including its mainstream driving business, electric vehicles, two-wheeler and self-driving cars.
Economic Moat
Establishing and maintaining the number one position in the taxi market indicates that Ola has a service offer better market place than other service providers in the same segment. Ola is different from other archive service providers or other departments. It's the market itself. Because they list rates and cars in their system. This increases the price transparency and enabling them to gain the trust of the customers. Another feature that makes Ola superior is that they do their services are not limited to the city limits. They also offer car rental for outer station trips. Also, with Ola, the ride option is available and it offers more customer friendly service. Ola also takes note Customer safety and thus there is 24*7 customer care service. Attractive price packages and diversity. The fleet of cars targets the middle income segment, which increases their customer base. GPS Tracker High visibility in the case of vehicle movements and the success of cabs Company.
Social Media
1)This includes other tools Ola used to promote the brand in the market.
2)Channels like banner ads, newspaper ads, television advertisements and online marketing are used.
3)As part of his campaign, twitter, on Facebook. Ola choose Facebook to launch his first campaign from online marketing tool high on it. This enabled Ola to target the right people at the right time. It was a Facebook campaign #chaloniklo campaign was a big success. #chaloniklo content displayed in various video ads. Facebook, including an appeal for action that will encourage people to download the Ola app. So she grew Popularity of Ola apps. Customer acquisition spree with Facebook campaign increases and searches. The Ola cab also increased, resulting in a 60% increase in sales.
Business Strategies
1)For customer enhancement they started various schemes like refer and earn, Ola ride at rupee 6 per km, get 200 off on first ride.
2)Initially Ola founders burn the investors cash to gain market share and to give much incentive to Ola drivers so they can't leave them.
3)When they take market share, each ride increases the fare and reduces incentives.
4)Then launches Ola money so you can pay to restaurant, domino's, cafe coffee day, metro, travel, insurance, air ticket.
5)Launches Ola cycle to help environment
6)To enter the food distribution sector acquire food panda
7)Make their app light weight to not lose market share in rural area.
SWOT Analysis-
Strengths
1)Ola is first Indian startup in taxi aggregator service.
2)It achieved the no.1 rank in the sector due to the brilliant mind of Bhavesh Aggarwal.
3)The services offered by Ola are well appreciated by the public
4)social media and TV has helped to create awareness about the company.
5)Increase in customer base due to strong marketing.
6)Financial condition of startup has improved after investments by various firms.
Weakness
1)Brand image can be easily influenced by the misbehavior of the drivers as they are the only one who has direct contact with the customers.
2)Demand makes currency difficult.
3)There are some issues with driver like they not treated women well.
Opportunities
1)There is a huge potential for the company to acquire market
2)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.
3)Disposable income can be increased.
4)Convenient services create huge demand among customers.
5)Acquisition of small companies in different fields to enter the market
Threats
1)Increasing competition eg Uber, Meru.
2)Heavy burning of cash to attract customer due to strong financial root of Uber.
3)competitors like Uber have national level competition
4)No specific regulatory body of the government to control taxi aggregator service.
5)Customer loyalty is rare in this segment due to competition.
6)There is no entry barriers for new startups.
Conclusion
Ola has seen a tremendous growth in the taxi market sector. There is surely no looking back for Ola as it is improving day by day in every part. Revenue of Ola has increasing rapidly and hope it become profitable as soon as. Today it is the largest cab service provider in the country. Ola has successfully achieved public support and has created a craze about its brand in the market. And if there is any further technical progress, then When done at Ola, the customer can be given a better experience and increase the customer base. Wet now Focus on the target market and to provide the people in the target with the services they want market. Economic division is good depending on income groups and people's needs I appreciated it. Ola promotes its brand in a traditional way and uses it on the other hand
Modern promotion techniques. At the same time, it does not forget to highlight its name in social security, To create social awareness and promote humanity's actions. The key factor in making Ola a successful brand is Efficient and fast accessibility offered by the company. The firm does not improve its intensity. Advertising actions, but due to the services and convenience provided to users and employees. Ola is making you dull. A tick gives you a taxi cab. There is less demand for habits to develop. The necessary changes in the ethics are minor. What's more, once you get used to it, it's hard to look back.
"Everyone has business idea but until execution is not perfect success doesn't come"
Bhavesh Aggarwal
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