Industry Profile

Online taxi operators are digital intermediaries who use a mobile platform, GPS-enabled
applications, or radio signals to link clients with cab drivers. In India's taxi industry, both
organised and unorganised cab services operate. Customers can use a mobile platform
connected to the Global Positioning System (GPS) or the General Packet Radio Service
(GPRS) system to access organised taxi services or online taxi services. India's organised taxi
services sector is dominated by online taxi services. Internet taxi or radio taxi service
providers in the nation act as aggregators or radio cabs based on their tracking capabilities.
The aggregator-based model of online taxi services, also known as the app-only model,
accounted for more than 95 percent of all online taxi services in 2019. The Indian online taxi
services market was worth INR 30.72 billion in FY 2020 and is expected to grow at a CAGR
of 12.93 percent between FY 2021 and FY 2025, reaching INR 55.15 billion by FY 2025.

The availability of high-speed internet access, as well as rising foreign institutional investor
(FII) engagement in India's online taxi business, are some of the key causes presently
propelling the sector's expansion. However, government meddling in online taxi service
operations, such as the imposition of GST on separate trips, as well as a demand-supply
mismatch in the business, are halting the market's continuous rise.

Competition analysis

The Indian internet cab services market is dominated by two main companies: ANI
Technologies Private Limited (Ola Cabs) and Uber India Systems Private Limited. In FY
2020, Ola Cabs produced roughly 74.65% of the entire revenue generated by India's online
taxi services sector, while Uber India had a market share of 20.07 percent. Other firms in the
field include Meru Mobility Tech Private Limited, Mega Cabs Private Limited, and
Carzonrent (India) Private Limited. By 2020, Ola Cabs will be operating in around 130 cities
across India, while Uber India will be operating in approximately 55 cities.

INTEGRATED MARKETING MIX

Product

Ola has introduced "Ola Corporate," a corporate solution that the cab-hailing firm claims
would help businesses save money on trips while also providing them with a centralised
paperless invoicing system. Corporate clients may hail Ola taxis as needed and pay from their
company's centralised pre-paid account, avoiding the need for reimbursements for
transportation. In all of India's main cities, Ola promises an ETA (estimated time of arrival)
of less than 5 minutes.

Customers may request rides based on their needs during working days, and they won't have
to make reimbursement claims, and the admin will have all of the aggregated reports. The
system also allows businesses to tailor ride regulations for different groups of employees,
depending on their needs. This guarantees that through technology, the administration teams
can keep track of each executive's travel expenditures.

When an executive's workplace approves Ola Corporate, a new toggle option called
"Corporate Ride" appears on the confirmation page throughout the booking process. When
this option is selected, the ride is charged straight to the user's corporate account, eliminating
the need for the user to pay the fare in cash or using Ola Money. Ola Corporate users get
access to all in-app services such as sharing trip information, emergency contacts, SOS, and
number masking, and they may pick from a variety of car classifications.

Price
To decide the price of its rides, Ola uses a surge pricing or dynamic pricing technique. When
there is a strong demand for Ola's service, the company raises its prices, and when there is a
low demand, it lowers its prices. Dynamic pricing not only increases profits, but it also keeps
demand stable. When demand rises, the price rises with it. Commuters who don't have a
pressing need to travel can postpone their journey by an hour or so when costs rise. As a
result, demand will be stabilised or diffused, resulting in effective resource usage.

Another benefit of dynamic pricing is that OLA will be able to know when and on which
routes corporate workers are travelling more frequently and ready to pay more, allowing
OLA to allocate more resources to those routes at that specific point in time. Ola also gives
additional discounts and ride deals for specific routes based on the size of the client
organisation and the number of orders placed by them.

Place
Ola Cabs is a corporation that operates through an internet network. Cabs may be booked on
the company's website or through the Ola smartphone app, which can be downloaded from
the App Store and Google Play Store. Ola chose in 2014 to expand its operation network to
approximately 200,000 vehicles operating in almost a hundred two-tier, three-tier, and metro
cities like as Kolkata, New Delhi, Chennai, Pune, Bhubaneswar, Bengaluru, Hyderabad,
Ahmedabad, and Mumbai. The company intends to expand its presence in cities where the IT
industry is more active and where businesses use private cab services. Ola also plans to
expand "Ola Corporate" to other countries like as Australia, New Zealand, and the United
Kingdom, as the company seeks to diversify its revenue streams. Following a dramatic drop
in demand for urban mobility services in India as a result of the covid-19 epidemic, revenue
has increased.

According to Ola's estimations, the market potential for corporate travel in Australia
comprises approximately 2.3 million firms with a demand for business travel solutions. Ola
now has roughly 75000 drivers registered in Australia and another 25,000 riders in the United
Kingdom.

Promotion
Ola Cabs has a competitive advantage over other rental car companies in India, making it the
industry's fastest growing company. It has put in place a thorough marketing plan to increase
brand recognition among customers. The company has utilised every available channel,
including digital and print via mobile phone SMS, magazines, newspapers, and billboards. It
has also maximised visibility through social media sites such as Twitter, Facebook, blogs,
and Instagram. During a promotional event, actress Gul Panag, who is associated with the
company, recently handed over the keys to an Ola cab driver. The firm offers incentives like
as free rides, 50% off rides, Rs. 5,000 off, a free first ride for new users, and discount
coupons to increase its customer base.

Ola has also worked with well-known Indian television stations. Ola partnered with TVF, a
web-based entertainment channel, in 2016. Ola Cabs were also featured on the TV
programme Permanent Roommates. For the live TV, Ola teamed with yupp TV. Eros is now
available in every Ola car, allowing passengers to watch TV or movies while riding in
comfort. Ola has also partnered with ALT Balaji, a video-on-demand subscription service.
Ola stepped up to promote the film, and we've seen Vidhya Balan promote Tumhari Sullu
and encourage female drivers to perform their jobs. Ola helped Madhuri Dixit advertise her
debut Marathi film "Bucket List." Ola introduced a one-rupee sharing card a few months ago
to minimise the cost of share trips. According to the Ola media centre, millions of individuals
are utilising the share pass, which has been a huge success for the company. Ola also invites
consumers to share their ola tales by using the hashtags #HerosOfOla, which promotes the
idea that not all superheroes wear capes! #HeroesofOla are genuine stories of ola drivers who
went above and beyond the call of duty to show courage and kindness.

Ola was able to take the brand name to every part of the country because to all of these
promotional activities.