Growth of Ola Uber

A STUDY OF THE GROWTH OF OLA & UBER IN INDIA
DURING THE PERIOD “2019-2020”

T.Y.B.A.F
OBJECTIVE OF STUDY
 To see the contribution of companies like Ola and Uber in the Indian
economy.
 To see the interest and satisfaction of the users for the cab service.
 To see the upliftment of the driver.
 To study the problems faced by the start-ups and how they overcome it.
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SCOPE OF STUDY
The present study covers factors like the contribution of companies like Ola and Uber
in the Indian economy, interest and satisfaction of the users for the cab service,
upliftment of the drivers, and the problems faced by the start-ups and how they
overcome it.
It also covers the factors like innovativeness, price consciousness, and coupon
redemption behavior. There may be other factors influencing the consumers in
selection of cab services which are not covered in the study.
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INTRODUCTION
(OLA)
'Ola', the company needs no introduction. The first cab aggregator company In India,
Ola has made availing cab services a smooth experience. Owned by ANI
Technologies Pvt. Ltd., and formerly known as OlaCabs, Ola was started in Dec 2010
by two IIT Bombay graduates. Ola serves as an efficient taxi aggregator and bridges
the gap between cab owners and commuters.
Instead of buying and renting out their own cars, Ola partners with a number of taxi
drivers and owners, add a touch of modern technology to the whole set up, where
people could book cars at short notice through their app. Ola is India’s homegrown
ride-hailing app with about 60% market share (as of 2014) in India with users
across 100 cities of India and 15 lakh driver-partners. Driven by a hyperlocal
approach, Ola is committed to its mission of building mobility for a billion people.
Staying in line with its mission, Ola has also ventured into auto and bike booking
services. In 2017, Ola also started off a bicycle sharing service called 'Ola Pedal' to
facilitate last mile connectivity.
India seems to be going through a ‘Taxi’ revolution. Every other day, there is a
new start up offering efficient cab service to the citizens operating urban and
rural lifestyles.The intra-city travel has always been a curse for many
individuals, especially in crowded cities like Mumbai and Bangalore.
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While the local trains emerge as an alternative to shelling out wads of cash for
fuel and waiting in bumper-to-bumper traffic in cosmopolitan Mumbai, the
dangers of travelling by these trains are innumerable. The distances in Bangalore
crush the spirit out of anyone who loves to drive, and the traffic makes it terrible
to drive your own vehicle in the city. Ola Cabs is a taxi service that was started
in 2010 in Mumbai to solve the city’s transport woes.
Started by Bhavish Aggarwal and Ankit Bhati, the company now provides taxi
services in over 100 cities across the country. You can avail an Ola Cab
extremely easily and their trusted drivers will get you to your destination hassle
free. The company now houses its office in Bangalore. Taxi can be booked either
through
their website or through a mobile app that is available for download on Google
Play Store and The App Store.
Customers need to create a unique user name and password which will then help
them book a taxi with ease. The mobile app is by far the simplest way to book an
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Ola Cab. The customer simply needs to turn on their GPS and the open the app,
which indicates all available cabs near that location. Customers then have two
options: picking the cab right then or booking one for a later date.Ola Cabs offer
services from the economy level to the ultimate luxury.
The mini cars, most popularly a Tata Indica, are the cheapest service available
and can seat a maximum of 5 people. Sedan is also available for a slightly higher
price, recommended for 6 to 8 people. The business class have the option of
availing prime high end cars, which complete the luxury level. The Inception of
Ola AutoThe latest development from Ola is the introduction of Ola Autos. The
frequency of these autos are much higher than the usual Minis and hence
customers can find an auto within 2 minutes most of the time.
This service was started on a trial basis in Bangalore in 2014 and has now been
expanded to Chennai, Delhi etc after the trial proved fruitful.Easily accessible
and convenient are terms that are synonymous with Ola Cabs. The option
of cashless payment using the Ola Money facility and its unique referral program
are few characteristics that have helped this company revolutionize the new local
transport in India.
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(UBER)
Uber was first founded in 2009 by Garrett Camp and Travis Kalanick under the name
UberCab. At the time, Camp had recently spent $800 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. Camp reasoned that
allowing multiple people to share the cost of the service would drive it down, and
UberCab was born.
In 2010, a man named Ryan Graves responded to a tweet sent out by Travis Kalanick
and became the first UberCab employee. He was made a general manager and was
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given between 5-10% 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
UberX – a service which allowed people to work for Uber driving their own car.
Since then, Uber has been on 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. Interestingly enough, Uber actually lost $2.8 billion on that 2016 gross,
showing just how committed the company is to continuing to push the envelope and
develop new services and technologies that will revolutionize the transportation
industry.
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Even in locations that do not yet have Uber, Uber is still a household name. Thanks in
part to the way it has disrupted the transportation market and thanks also in part to
clever marketing, Uber is now known around the world, and it will be exciting to see
what the company is able to do in the future given its worldwide popularity and its
commitment to growth.
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HISTORY
(OLA)
The Indian taxi hailing industry is valued to be close to $10 billion. A lucrative and
relatively untapped market such as this is bound to attract a lot of attention from
entrepreneurs in India and around the world. Capitalising on this
opportunity, Bhavish Aggarwal and Ankit Bhati launched India’s very own cab
hailing startup, Ola.
The idea behind Ola came to Bhavish Aggarwal after he found himself stranded in the
middle of the road on his way to Bandipur from Bangalore. Bhavish’s cab driver
stopped the car in the middle of the journey and demanded a renegotiation of what
Bhavish was paying and then proceeded to abandon him by the side of the road.
Understanding the plight of travellers everywhere, he saw the amount of potential that
an extraordinary cab booking service could have in this country. In 2010, he changed
his business model from a holiday and tour planning company to a taxi hailing firm.
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Joined by his co founder Ankit Bhati, Ola was launched in December 2010 as Ola
Cabs. The taxi aggregator efficiently bridges the gap between cab owners and
commuters adding a touch of technology to make lives and transportation easier. The
company partners with drivers and cab owners to offer a variety of cab services to
commuters across India. Leveraging the best of technology and building innovative
solutions, the company expanded to reach 50+ cities by 2015. Serving 200,000 rides
per day, which roughly translated to 6 million riders per month, the taxi hailing
startup grew at a rate of over 40%.
However, the Ola journey was not as smooth as booking a cab on the app. In 2012,
both the founders got a wake up call in the form of a website outage. Ankit Bhati, the
Chief Technology Officer, who was in Bangalore at the time had to stay on call the
entire night with the one man technology team in Mumbai to solve the issue. But that
did not stop the duo. They shifted base from Mumbai to Bangalore and launched their
mobile app, stepping up their game. The first version of the app, however, was a one
touch destination for booking cabs.
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Further, in 2015, the company also launched Ola Fleet, a cab lending arm, which
operates as a subsidiary of ANI Technologies Pvt., Ltd., Ola’s parent company. By
September 2015, the company was valued at $5 billion. In 2016, the company
launched another flagship service Ola Play which became the world’s first connected
car platform, transforming the commuting experiences and setting the tone for global
innovation in this space. By the end of the year, started facing competition from Uber
and another homegrown company TaxiForSure. Nevertheless, Ola persevered. The
startup acquired TaxiForSure, launched another flagship service Ola Auto and
continues to battle against Uber to become the majority shareholder of the market.
Currently, the company offers 11 services in over 106 cities and also launched its
services in Australia. The company is backed by international venture capital firms
like SoftBank, Tencent, Microsoft and eBay among others. According to latest
reports, Ola is in talks with Singapore sovereign fund Temasek, to raise $1 billion in
fresh funding. As of November last year, Ola is expected to be valued at close to Rs.
23,112 crores or $3.46 billion.
Bhavish Aggarwal’s journey from almost beginning a tourism company to

establishing India’s biggest taxi hailing startup looks like a dream of every aspiring
entrepreneur in the country. If anything, Ankit Bhati and Bhavish Aggarwal’s story is
proof that anything is possible if you have the will and the determination to start your
journey. Two IIT B-Tech graduates who started their careers in Microsoft and other
startups have acquired 3 startups till date and raised more than $350 million from
existing as well as new investors. The success story of Ola is the motivation everyone
needs to book your next ride and start your own journey.
(UBER)
Uber was founded in 2009 as UberCab by Garrett Camp, a computer programmer and
the co-founder of StumbleUpon, and Travis Kalanick, who had sold his Red
Swoosh startup for $19 million in 2007.
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On New Year's Eve, after Camp and his friends spent $800 hiring a private driver,
Camp wanted to find a way to reduce the cost of direct transportation. He realized that
sharing the cost with people could make it affordable, and his idea morphed into
Uber. Kalanick joined Camp and gives him "full credit for the idea" of Uber. The first
prototype was built by Camp and his friends, Oscar Salazar and Conrad Whelan, with
Kalanick being brought on as a "mega advisor" to the company.
Following a beta launch in May 2010, Uber's services and mobile app officially
launched in San Francisco in 2011. Originally, the application only allowed users to
hail a black luxury car and the price was 1.5 times that of a taxi.
In February 2010, Ryan Graves became the first Uber employee, getting the job by
responding to a tweet from Kalanick announcing the job opening, and receiving 5–
10% of the company. Graves started out as general manager and shortly after the
launch was named as CEO. After ten months, in December 2010, Kalanick succeeded
Graves as CEO. Graves became the company's chief operating officer (COO).
In 2011, the company changed its name from UberCab to Uber after complaints from
San Francisco taxi operators.
The company's early hires included a nuclear physicist, a computational

neuroscientist, and a machinery expert who worked on predicting demand for private
hire car drivers and where demand is highest. In April 2012, in Chicago, Uber
launched a service where users were able to request a regular taxi or an Uber driver
via its mobile app.
In July 2012, the company introduced UberX, a cheaper option that lets people drive
for Uber using non-luxury vehicles, subject to a background check, registration
requirement, and car standards. At first, rates were similar to those of taxis and were
35% cheaper than UberBLACK. By early 2013, the service was operating in 35
cities. Uber allowed drivers to use their personal vehicles as part of UberX starting in
April 2013. Rates were quickly lowered, which caused some dissatisfaction among
UberBLACK and taxi drivers, whose earnings decreased as a result of the increased
competition at lower rates.
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In August 2014, Uber launched UberPOOL, a carpooling service, in the San

Francisco Bay Area. The service was then launched in other cities worldwide: Paris in
November 2014, New York City in December 2014, China in August
2015, Washington, D.C. in October 2015, London in December 2015, the suburbs
of Boston in January 2016, Hyderabad, Kolkata Mumbai, and Singapore in June
2016, Delaware in September 2016, Toronto (Brampton and Scarborough) in April
2017, Nashville in December 2017, Sydney in April 2018, and Melbourne in June
2018.
In August 2014, Uber launched Uber Eats, a food delivery service.
In August 2016, after facing tough competition in China, Uber sold its operations in
China to DiDi, in exchange for an 18% stake in Didi. Didi also agreed to invest $1
billion into Uber Global. Uber had started operations in China in 2014, under the
name 优步 (yōubù).
In August 2017, Dara Khosrowshahi, the CEO of Expedia which had led an $11M
investment in Wingz, became the CEO of Uber.
In fall 2017, Uber became a gold member of the Linux Foundation and received a five
star privacy rating from the Electronic Frontier Foundation.
In February 2018, Uber combined its operations

in Russia, Armenia, Azerbaijan, Belarus, Georgia and Kazakhstan with those
of Yandex.Taxi and invested $225 million in the venture.
In March 2018, Uber merged its services in Southeast Asia with those of Grab in
exchange for a 27.5% ownership stake in Grab.
As of March 2018, men accounted for 62.0% of overall company employment, 51.4%
of support staff, and 82.1% of technology-related employment. White people made up
48.6% of the overall employment base and Asian people account for 32.3%.
However, for technology-related jobs, White people were 46.3% of employees, while
Asian people accounted for 44.7% of employment.
Rent, powered by Getaround, was a peer-to-peer carsharing service available to some

users in San Francisco between May 2018 and November 2018.
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In March 2019, Uber acquired Careem, a transportation network company based in

Dubai, with operations in over 100 cities in 14 countries in the Middle East, Africa,
and South Asia for $3.1 Billion. As part of the deal, Careem maintains an independent
brand and operates separately.
On May 10, 2019, the company became a public company via an initial public
offering underwritten by 30 banks including Morgan Stanley. Following the initial
public offering, Uber's shares dropped 11%, resulting in the biggest first-day dollar
loss in IPO history for the US. It then posted losses of $1 billion on its first quarter of
2019 in its first earnings report as a public company. A month after going public, both
COO Barney Harford and CMO Rebecca Messina stepped down. Uber posted a
drastic US$5.2 billion loss of for the second quarter of 2019. The loss included
US$3.9 billion of "stock-based compensation expenses" related to employee equity
delivered as a result of the IPO, and an operating loss of US$1.3 billion.
Facing continued losses, the marketing department headcount was reduced by a third
on July 29, 2019 with the lay-off of 400 people. Engineer hires were frozen as well.
In early September 2019, Uber laid off an additional 435 employees with 265 coming
from the engineering team and another 170 coming from the product team.
In October 2019, Uber launched Uber Works to connect workers who want temporary
jobs with businesses. The app is available in Chicago only as a start.
In October 2019, Uber announced airport helicopter taxi service available to all users
from JFK airport.
Uber autonomous vehicle Volvo XC90 in San Francisco
Advanced Technologies Group (Uber ATG) is a subsidiary of the company that is

developing self-driving cars. Uber ATG is minority-owned by Softbank Vision
Fund, Toyota, and Denso.
In early 2015, the company hired approximately 50 people from

the robotics department of Carnegie Mellon University.
On September 14, 2016, Uber launched its first self-driving car services to select
customers in Pittsburgh, including Pittsburgh Mayor Bill Peduto, using a fleet of Ford
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Fusion cars each equipped with 20 cameras, seven lasers, Global Positioning

System, lidar, and radar equipment that enabled the car to create a three-dimensional
map utilizing landmarks and other contextual information to keep track of its position.
On December 14, 2016, Uber began using self-driving Volvo XC90 SUVs in its

hometown of San Francisco. On December 21, 2016, the California Department of
Motor Vehicles revoked the registration of the 16 vehicles Uber was using for the test
and forced the program to cease operations in California. Uber then moved the
program to Arizona, where the cars were able to pick up passengers, albeit with two
Uber engineers in the front seats as a safety precaution. In March 2017, an Uber self-
driving car was flipped on its side by a vehicle that failed to yield. In October 2017,
Uber started using only 1 test driver despite some employees' safety concerns.
In November 2017, Uber announced a non-binding plan to buy up to 24,000 Volvo

XC90 SUV vehicles designed to accept autonomous technology (including a different
type of steering and braking mechanism and sensors) between 2019 and 2021.
In March 2018, the death of Elaine Herzberg by an Uber self-driving vehicle

in Tempe, Arizona resulted in temporary pause to Uber's self driving vehicle
testing. According to police, the woman was struck by the Uber vehicle while
attempting to cross the street, while the person in the vehicle was watching videos on
her phone. Uber pulled its self-driving cars off all public roads and quickly reached a
settlement with the victim's family. There was disagreement among local authorities
as to whether or not the car or the victim was at fault. In December 2018, after
receiving local approval, Uber restarted testing of its self driving cars, only during
daylight hours and at slower speeds, in Pittsburgh and Toronto. In March 2019, Uber
was found not criminally liable by Yavapai County Attorney's Office for the death of
Ms. Herzberg. The company changed its approach to self-driving vehicles after
Herzberg's death, inviting both Waymo and General Motors’ Cruise self-driving
vehicle unit to operate vehicles on Uber’s ride-hailing network.
Prior to its IPO, Uber projected the potential operation of 75,000 autonomous
vehicles, in 13 cities, by 2022. These projections, developed through an internal effort
codenamed Project Rubicon, targeted the possibility of profitable autonomous
vehicles by 2018 in an initial January 2016 report, with a May 2016 report claiming
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that 13,000 autonomous Uber vehicles could be operating by 2019. The 75,000-
vehicle figure was proposed in September 2016. To reach these goals, Uber spent a
reported $20 million a month on research and development, according
to TechCrunch. Other sources have estimated Uber’s spending on self-driving vehicle
research to have reached as high as $200 million per quarter.
In April 2019, Uber scientist Raquel Urtasun offered a more cautious estimate of the
company’s eventual self-driving capabilities, saying "self-driving cars are going to be
in our lives. The question of when is not clear yet. To have it at scale is going to take
a long time."
Cancellation of research on autonomous trucks
After spending $925 million to develop autonomous trucks, Uber cancelled its self-
driving truck program in July 2018. Uber acquired Otto for $625 million in
2016. According to a February 2017 lawsuit filed by Waymo, owned by an affiliate
of Google, ex-Google employee Anthony Levandowski allegedly "downloaded 9.7
GB of Waymo's highly confidential files and trade secrets, including blueprints,
design files and testing documentation" before resigning to found Otto, which was
purchased by Uber. A ruling in May 2017 required Uber to return documents to
Waymo. The trial began February 5, 2018. A settlement was announced on February
8, 2018 in which Uber gave Waymo $244 million in Uber equity and agreed not to
infringe on Waymo's intellectual property.
HISTORY OF THE UBER LOGO
In 2010, when the company was still UberCab, they unveiled a logo that featured a
red “UC” with the company’s name above the logo. When the name was changed to
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Uber, the logo dropped the “C” as well as the word “Cab” in the name above it.
However, the rest of the design stayed the same.
It was in 2012 that the Uber logo got its first major overhaul. The new logo ditched
the bright red and bold letters and instead featured a darker color scheme and slim,
modern-looking letters. The goal in this redesign was to make the Uber logo look
more modern and luxurious – both themes that Uber tries to touch on in their
marketing.
For several years, this logo remained the one in use by Uber and became widely
recognizable across the world. In 2016, though, the Uber logo underwent another
major overhaul, this time ditching the “U” and the company name entirely. Some
described the new logo as bizarre, yet there is a lot of meaningful elements to its
design that really convey the type of company that Uber hopes to be moving forward.
Design Elements of the Uber Logo
The new Uber logo features a slightly abstract design that the company says was
inspired by the bit and the atom – both building blocks of technology and the world.
The color scheme of the Uber logo still reflects many of the same themes as previous
iterations, using crisp whites and dark blues to convey a message of luxury as well as
futuristic technology.
Speaking about the new logo, Uber said, “This updated design reflects where we’ve
been, and where we’re headed. The Uber you know isn’t changing, our brand is just
catching up to who we already were.”
No doubt, the futuristic, modern design of the new Uber logo is very much in line
with Uber’s own futuristic and modern approach to the transportation industry.
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Popularity of the Uber Logo
Design has always been an essential aspect of Uber’s business model. In order for the
company to be successful, the design of their app and their website both had to be
flawless. To this end, the Uber logo has played an important role in the company’s
design. It has served as the thumbnail for the Uber app and is also displayed
throughout the app and website itself.
While the latest Uber logo is still relatively new, the company is already investing a
lot in it. They even released an explainer video detailing some of the meaning behind
their new logo. In this video, Uber says, “We leave no bit or atom unturned to create
industries that serve people—and not the other way around.”
There’s little doubt that the new Uber logo will play a huge role in the company’s
branding and marketing, which is why Uber has worked so hard to make the design
elements of the logo reflective of the company’s message and their approach.
In summary, Uber is a company with a complex mission and a complex message. Part
of their challenge, then, is to convey that mission and message to their customers, and
the design of their logo is one of the tools they are using to accomplish this task. It’ll
be exciting to see what Uber is able to accomplish in the coming years and equally
exciting to see how the company continues to use their logo and their eye for
attractive, meaningful design to push Uber forward.
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Here is a look at the New Uber Logo released in Sept 2018
Just two days after hiring their first chief marketing officer they came out with a new
brand.
The new visual identity was designed by Wolff Olins.
Molly Watson the director of verbal identity at Wolff Olins San Francisco, said the
new logo was designed to represent Uber’s growth ans security
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SWOT ANALYSIS OF OLA CABS :

STRENGTHS
This helps in understanding the core areas of the business where it beats the
competition and has the competitive advantage in the market. Strengths are generally
the core competency of the business.
 First Mover Advantage – Ola started back in 2010 and had the first mover
advantage in comparison to its competitors which started very late in the
segment. Though other taxi services were already there like Meru Ola targeted
a new segment and is currently targeting mass segment owing to the low
prices it offers
 Product Line – Ola offers a wide product line which starts from offering
services using bikes, auto, and different types of cars. It also offers different
kind of services like local commuting, outstation and rentals and share cabs.
Thus it offers a complete package of services to its users which fits different
segments according to their usage. This has helped Ola to become really
popular in Indian market.
 Technology – Ola makes use of state of the art technology with strong data
analytics which helps it to forecast the demand in any geographic region
accurately so as to provide the balanced supply of cars for the commuters. The
more the availability the more it will be used by the customers.
 Strong Brand Name – Ola has been able to establish high brand
recall and brand name in the market as there are only a few players in the
cheap rides segment.
 Low Investment – Ola being an aggregator service provider does not have to
possess the fleet of cars to run their business. Drivers from the region
collaborate with the Ola to meet the demand from the customers and hence
there is always a cash surplus.
 Dynamic Pricing – Ola has been using dynamic pricing model to rate the ride
according to the demand of the rides in a particular region or during the bad
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weather conditions. This helps to manage the supply in an efficient manner

and at the same time adds to the bottom line.
WEAKNESS
This is the pain area of the organization where it does not have the resources or skills.
Business has to work upon these areas so that they are not left behind from the
competition. Though there will be some or the other weakness it should not be an area
which takes the business out of the market
 No Control over Drivers – The business model that Ola is executing leaves
itself with no control over the drivers. Drivers play important role in making
the brand name of Ola and hence any misbehavior of the driver with the
customers directly sabotages the image of the brand in the market. There have
been various incidents where drivers have manhandled the customers lead to
the uproar against the brand
 Fake Rides – Ola drivers have started to ask riders to book fake rides just to
increase their ride counts for the day and Ola has no control and visibility over
this. This leads to a loss of revenue as the drivers are getting paid for nothing.
 Weak Support – The support services offered by the taxi service is not up to
the mark and customers are always grunted over the support they receive from
the brand. This has tarnished the brand name in the market.
 Dependence on Internet – Customers can only book rides if they are
connected to the internet. As in India, the connectivity is an issue and hence
customers are not able to book rides. Though they have started with the offline
booking it is not yet very helpful and appropriate.
 Market Segment – Though they market themselves as mass segment
usage people who are tech savvy are able to use the services. In India, the ratio
of tech-savvy people is very less in comparison to the non-technology users.
OPPORTUNITIES
This helps in understanding what other things a business can do with the current skills
and resources. It helps the business to know the areas where it can expand and take a
lead in order to diversify the business and expand the customer base
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 Wider Market – In order to attract non-tech savvy customers, Ola has to

rethink of their business model where such segment can also make use of their
services and it will be a big breakthrough as it helps to enhance the customer
base to a great extent.
 Increasing Internet Penetration – With the increase in the initiatives taken
by the government to make Smart cities and penetrate the internet to remote
places as well provides Ola with an opportunity to focus on these regions and
expand their services to Tier 2 and 3 cities as well.
 Poor Government Transport – In Tier 2 and 3 cities there is a lack of proper
government transport facilities and hence this opens door for Ola to look into
those cities and capitalize on the opportunity
THREATS
This analysis helps in understanding what are the areas which can impact the business
in future or right away. So business has to prepare itself to handle the threats in the
market landscape. Competition or increasing number of players in the market with
same value proposition is a threat to business as it directly lowers the customer base
and revenue
 Government Regulations – Government regulations about the taxi service

industry is unclear at the moment. Taxi providers are constantly being
threatened by the changing rules and regulations.
 Customer Satisfaction – With bad customer service and presence of Uber in
the market makes the customers switch the brands.
 Competition – There is an increasing competition in the market due to the
presence of Uber and other emerging players in the local regions.
SWOT ANALYSIS OF UBER :

STRENGTHS
 Brand Equity: Uber is a recognised Brand Globally with presence in over 50
countries. Uber has already surpassed Automobile giants like General
Motors, Ford and Honda on Brand value Parameter. With increasing internet
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penetration and coming of age technology, Uber is expected to grow rapidly in

the coming years. It is currently valued at over $68 Billion. Due to the high
valuation of brand, Uber attracts investors too.
 Low Fixed Investment: Uber, being an aggregator does not require high fixed
investment and so it becomes easier for Uber to add more cities to its network.
It has expanded rapidly because there is no fixed investment or infrastructure
required.
 Emphasis on Customer Satisfaction: Uber has always prioritised customer
satisfaction. Uber has understood that it is serving in a totally customer driven
market where competition is increasing. To keep an edge over the rivals,
it needs to provide better customer satisfaction and enhanced user experience.
A recent survey comparing the customer satisfaction of Uber and Ola in India
has clearly shown that Uber is far ahead. About 65 % chose Uber over Ola
when it comes to user experience.
 Dynamic Pricing strategy: Uber has adopted the dynamic pricing strategy
which works on the demand supply principle of economics. Higher the
demand, Higher the price. This becomes really beneficial for the company and
the drivers. In peak hours as well as in Night time, drivers earn a good amount
of money.
 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 marketer and has adapted very well
wherever it has established its business.
 Growth rate: The growth rate of Uber can be seen below. This concerns
growth rate in India only. As we can see, Ola is expanding by more then 100%
year on year and this expansion has continued in 2017.
WEAKNESSES
 Highly Dependent on Manpower: Drivers are the face of the company and
thus the company’s image depends on the behaviour of drivers towards the
customer. This is a highly uncontrollable situation even though strict
guidelines are provided to the drivers.
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 Highly dependent on Internet: Uber is heavily dependent on internet

connectivity to expand and develop itself in developed countries. Thus, it is
facing problems in developing and emerging countries where internet is slow
or poor.
 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.
 Controversies: We had written an article on business lessons from Uber rape
case. Uber has encountered controversies in the past mainly because of the
drivers and their behavior. This affects the image of the company and a trust
deficit is created in the minds of the customer which is difficult to cover up.
 Low barriers to entry: Uber is in an industry where the barriers to entry are
very low so it will face competition in multiple fronts. Already in India, Meru,
Ola and others are giving tough competition to Uber.
OPPORTUNITIES
 Dissatisfaction with unorganized market: Customers are unsatisfied with
the unorganised cab market which presents an opportunity for Uber to take
advantage of. This is one of the main reasons for the success of Uber. Local
cab drivers are known to be rude and do not comply.
 Increasing internet penetration: With Government’s move to digitise India,
Number of smartphones are increasing and technology based applications like
Uber can expand their services to other cities and enlarge its footprint over the
country.
 Rising Disposable income: With rising disposable income, customers are
willing to spend higher on convenience.
 Alternate transport: Uber has launched ‘Uber chopper’ in various countries
and can look for other transport medium catering local needs. In India, Uber
can launch Bus aggregator system.
 Poor government transport: In markets like China and India where there is
over population and people are tired of using public transport, Uber provides a
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kind of privacy and relief where the user gets his own space to travel and does
not have to drive in Traffic.
 Special transport: Uber can provide special transport services such as paid
ambulances or urgent and emergency vehicles for dedicated
transport operations.
 Logistics: A smart idea for Uber can be to launch movers and packers support
whereby people can search movers and packers in the nearby area via Uber.
Local logistics can also be integrated. Though this is easier said then done.
THREATS
 Government regulations are unclear: The primary point of disagreement
between cab aggregators and government regulators is about their legal status
and whether they should be treated as conventional taxi companies or as IT
companies.
 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.
 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.
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HOW OLA IS RIDING THE FUTURE OF MOBILITY IN INDIA
Society has learned to circumvent realities of urban transportation like clogged roads,
outrageous car maintenance charges and steep parking tickets by hailing the online
taxi
revolution. This gradual shift in preferences has seen the ascent of a slew of
aggregators
looking to grab a share of the market, perfectly exampled and ably demonstrated by a
Bangalore-based company during the course of its seven-year-old eventful ride.
Turning on the ignition way back in September 2010, IIT-Bombay graduates Bhavish
Aggarwal and Ankit Bhati collaborated to step on the gas and turn Ola Cabs into a
multibillion-dollar technology behemoth it has become today.
LONG AND WINDING ROAD
While its top rival has been embroiled in a cultural faux pas since the turn of this year,
Ola has been traversing miles in the online taxi aggregation space with new features
consistently added to its platform. In fact, as per an earlier ET report, its valuation was
marked up by as much as 12% by one of the world's largest asset management
company, Vanguard World Fund.Moreover, according to regulatory filings with the
ministry of corporate affairs, consolidated revenue for ANI Technologies - which
owns and operates Ola - increased sevenfold to Rs 758 crore in the year ended March
2016, compared to the same period the year before.Disruption of traditional
transportation modes has seen the mobility market experience a growth spurt in the
last few years, with many more niche players entering the fray. But there may be good
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reason to believe that taxi-hailing platform Ola will zip past others and continue to
accelerate in the years to come.
ADAPTED FOR INDIAN USERS
Like its competitors in the industry, Ola too offers a wide variety of taxis for
commuters to choose from, including economical alternatives like Micro and Mini
cabs, but what gives it an edge over others is its autorickshaw service. Launched three
years ago as a pilot experiment in Delhi, it has expanded to over seven cities across
the country today and contributes about 15% of the overall revenue of the company,
as per an earlier ET report. What gives these three-wheelers competitive advantage
over other taxis is that in addition to being omnipresent on Indian roads, the fares -
although different for different cities - are on the bottom bracket -- its average is
cheaper by around Rs 1.5 per km over Ola's lowest-fare service, Micro. In addition to
creating value for money, it also saves the company the trouble of poaching
autorickshaw-loyalists to use taxis instead. While keeping them from the endless wait
and tireless haggling, cashless settlements using its own payment gateway Ola Money
also ensures that lack of loose change is not a problem anymore.
More importantly, it acts as a buffer during taxi strikes - 2017 having been a year of
one too many.
Little wonder then that the company is bullishly looking to expand its fleet size,
which, according to the same ET report mentioned above, is likely to hit 2,50,000 by
next year.
ELECTRIFYING FUTURE
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Not only has Ola been forging alliances with companies like Google, Airtel and
Zomato, it has been entering into strategic partnerships with various Government
departments, including Airport Authority of India (AAI) and Indian Railways.
The ride-hailing app is currently in the process of setting up booking kiosks in 12
railway stations in Bangalore and 6 airports in India, whereby travellers can directly
go to the Ola zone and book taxis, instead of relying solely on the app. There will also
be designated parking spaces allotted to the company at these stations and airports.
Furthermore, Ola is also closely working with the government to introduce electric
vehicles in Indian cities. With the government aiming to turn the country into a 100%
e-vehicle nation by 2030, it is certainly a step in the right direction for the taxi
aggregator, which had launched a pilot program in Nagpur to test e-vehicles on its
platform.
"The launch of India's first multi-modal electric vehicle project on the Ola app, with
200 plus electric vehicles across cabs, buses and auto rickshaws in Nagpur alongside a
robust infrastructure of charging stations is a key milestone in our journey towards
sustainable mobility," an Ola spokesperson had told ET. The company is expected to
roll out similar programs in other cities going forward.
BUMPY RIDE
From an exodus of drivers to mass strikes, from a music copyright row to data theft
complication - Ola's ride has been far from smooth. And akin to its main rival in the
space, Ola too has seen a churn in its top management this year.
Government-regulated fares and revised working hours have become the stentorian
call of drivers on its platform as they collectively fight falling incentives. In fact,
according to a report by research firm RedSeer Consulting, these incentives have been
reduced by as much as 30-40% in the March quarter compared to the same period last
year, as Ola began focussing more on its unit economics. As weekly earnings took a
massive fall, more drivers left the platform as the latest Redseer data confirms:
between January and March this year, Ola lost 25% of taxis (or drivers) associated
with its platform.
But the taxi-hailing company has been taking some measures to meet growing
consumer demand. Its Ola Sainik program has absorbed hundreds of retired defence
personnel into its fold as drivers and according to an Ola spokesperson, the company
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reportedly plans to recruit 1,00,000 ex-servicemen in the next three years. Started in
2015 in association with The Directorate General Resettlement (DGR) under the
Ministry of Defence, Ola Sainik is already spread over 100 cities across the country.
POOLING AROUND
Another cash cow for Ola after its Auto service is its ride sharing business, for which
the Softbank-backed company is spending heavily on promotional offers to attract
new customers. Launched in October 2015, carpooling has seen a steady growth in
Q1 CY'17 - a claim confirmed by Redseer - because of lower fares and greater
convenience it offers. "This is reflected in the increase in the repeat usage of cab
among consumers," states the Redseer report. "We have seen an increase in the
weekly usage among the monthly active users," it further adds.
To further this momentum, Ola has been offering a subscription-based service since
November last year called Share Pass. In addition to offering five-ride pass for just Rs
149, 20 and 40 rides costs Rs 249 and Rs 349 per month, respectively, for the first 8
km. Moreover, passes ensure there is no price-surge for share trips.
Seen as a brilliant move to on-board cost-conscious customers, it has reportedly
registered a 500% growth in the past year, as per company claims, with Delhi and
Bangalore topping the list.
Ola is charting a steady growth strategy, backed by old-timers in the startup
ecosystem, including Softbank, Tiger Global and Ratan
Tata. From a $7.6 million Series-A funding in April 2011, Ola has raised a massive
$404 million in 2017 alone.
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UBER’S INDIA UNIT BRINGS HOME 30% MORE IN

REVENUES
MUMBAI: The main Indian unit of taxi aggregator Uber has posted a 30% jump in
revenues in its fifth year of operations in the country that the San
Franciscoheadquartered taxi aggregator considers as one of the highest potential
market globally.
Uber India Systems, which provides marketing and support services to Uber, posted
revenues of Rs 533 crore for the year ended March 2018, against Rs 410 crore in the
previous year, according to its filing with the Registrar of Companies (RoC).
A year ago, it had posted a marginal increase of 10% in total revenues due to
disruptions including in Karnataka and Delhi where governments banned surge
pricing. While the last fiscal was uneventful from a regulatory perspective, it has been
going through a supply crunch due to striking drivers in a few states. Both Ola and
Uber have drastically cut driver incentives which affected the supply pool, and in
turn, led to higher surge pricing.
“As these companies move towards profitability, they will look at areas where they
can get higher earnings. There is already a bit of rationalisation in the pool segment.
There could be a possibility of lower discounting as they move towards higher
margins growth which in turn has led to supply issues already,” said Ujjwal
Chaudhry, associate director, RedSeer Consulting.
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On an average, 5% of gross merchandise value for cab-hailing app companies goes as

rider incentive and another 12% for drivers. With about 20% commission from
drivers, most companies are 3% positive on a net basis, said industry officials. Uber
India Technology, a service provider to the flagship company, had sales of Rs 21.5
crore and profit of Rs 20 lakh last fiscal. Uber’s main rival Ola, run by ANI
Technologies, is over twice as big in sales but has been posting huge losses — it had
net loss of Rs 4,897.8 crore on revenues of Rs 1,380.7 crore in FY17. It has not filed
its numbers for FY18. In comparison, Uber’s Indian unit has been profitable since the
first year of operations — net profit rose 39% to Rs 26 crore during FY18.
India’s taxi market, estimated at more than $10 billion, is still largely unorganised
even as aggregator services backed by technology and increased smartphone usage
are fast changing the contours of the segment. Taxi owners and cab companies are
also looking for ways in which they can compete with the aggregators.
UBER FORECASTS FIRST-EVER QUARTERLY

PROFIT BY END OF YEAR
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Uber Technologies Inc. said it will deliver a first-ever quarterly profit by the end of
the year, signaling that cost-cutting measures are exceeding even the company’s own
recent
expectations. The company will become profitable, on an adjusted basis, by the fourth
quarter of 2020, Dara Khosrowshahi, the chief executive officer, said on a conference
call to discuss financial results Thursday. A previous plan set this goal for 2021. The
stock was up about 5% in extended trading.
The drive toward profitability is likely to take a toll on growth. Nelson Chai, the chief
financial officer, said gross bookings will decline slightly in the first quarter from the
previous period. For the fourth quarter, Uber edged out Wall Street’s expectations,
with bookings up 28% and a loss that was narrower than analysts’ estimates. Gross
bookings for the fourth quarter were $18.1 billion, showing demand for transportation
and food delivery orders remains strong. The measure, which represents the total
value of rides, food orders and other businesses, is closely watched by investors.
Efforts to rein in spending are proving to be especially effective. The San Francisco-
based company reported an adjusted loss of $615 million, compared with a $713
million average of analysts’ estimates compiled by Bloomberg. The loss, which
excludes interest, taxes and other expenses, was $817 million in the same quarter a
year earlier.
Uber is trying to more closely connect its various services and increase usage among
the more than 100 million customers who open the app each month. The company is
investing in electric bicycle and scooter rentals and experimenting with helicopter
rides and temporary staffing.
The new businesses are pricey, though, and investors have punished the company for
burning cash to fuel growth. The stock, which went public in May, trades below its
initial offering price. Uber said Thursday that its loss for the year using generally
accepted accounting principles was $8.51 billion. The startling figure was driven
primarily by stock compensation and one-time costs associated with the IPO.
In the last year, Uber has taken steps to check its spending habit. It reduced marketing
expenses, cut more than 1,000 employees and abandoned some unprofitable food
delivery units. It ended delivery in South Korea and sold the delivery operation in
India last month.
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The company will consider abandoning delivery in other countries or acquiring

businesses with the goal of only competing in markets where Uber Eats would be the
biggest or second-biggest option, Khosrowshahi said. Eventually, Uber Eats will
reduce discounts for customers, which will drive a decline in spending by the second
quarter. The strategy is similar to what the company did in ride-hailing. “The Eats
team is running the same exact play,” Khosrowshahi said. “It’s just running a year
behind.”
The ride-hailing business was profitable on a standalone basis in the fourth quarter,
Uber said. The company lost $130 million on its “other technology programs,”
including the autonomous driving division, which is funded by Uber, SoftBank Group
Corp., Toyota Motor Corp. and others.
Uber didn’t disclose the amount it spent battling government initiatives, like
California’s Assembly Bill 5, a new law that seeks to reclassify gig economy workers
as employees. Regulators in Colombia, London and parts of Canada have all moved
to ban the service from operating, and Uber, in most cases, is appealing those
decisions. The U.S. and Canada accounted for most of Uber’s revenue in the fourth
quarter.
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DECODING FM SITHARAMAN'S CLAIM: IS ONLY OLA,

UBER BEHIND AUTO SLOWDOWN?
India Today Data Intelligence Unit (DIU) has found that not only is the auto sector
facing a slowdown, but cab aggregators Ola and Uber are also witnessing a sharp
decline in the growth of rides over the last three years.
Sale of automobiles, including passenger cars, has been the lowest in the last 22 years
with a decline of 31.57 per cent due to drop in domestic demand.
HIGHLIGHTS
 Nirmala Sitharaman said auto sales are down as millennials are no longer buying cars
 The FM said people are more inclined towards using Ola and Uber
 However, there are other reasons that have also led to a decline in vehicle sales
Union Finance Minister Nirmala Sitharaman on Tuesday on Wednesday told reporters

in Chennai that millennials are no longer buying cars as Ola and Uber have become
more affordable. She was responding to questions on slowdown in the auto sector.
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India Today Data Intelligence Unit (DIU) has found that not only is the auto sector
facing a slowdown, but cab aggregators Ola and Uber are also witnessing a sharp
decline in the growth of rides over the last three years.
"The automobile and components industry has been affected by BS-VI (Bharat Stage
VI) (norms) and the mindsets of millennials, who now prefer to have Ola and Uber
rather than committing to buying an automobile," Sitharaman had said.
Sale of automobiles, including passenger cars, has been the lowest in the last 22 years,
with a decline of 31.57 per cent due to weak consumer demand.
Ola and Uber, too, are reportedly showing acute drops in ride growth in the last six
months. Ride growth rates of both the cab aggregators declined to 4.5 per cent by
June 2019. In 2016, the daily growth ride was 90 per cent, which declined to 57 per
cent in 2017 and 20 per cent in 2018.
This despite Ola and Uber registering phenomenal growth across Indian cities in the
last few years. Ride-hailing services became popular among consumers in
metropolitan cities with Ola setting shop in 2010, followed by Uber in 2013. Ola and
Uber started share services from 2015 to cater mainly to office commuters.
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The rise in the growth of taxi registrations during this period was one of the direct
consequences of these services.
The partial decline in taxi registrations since 2016 can possibly be attributed to the
maturity of these services and the overall saturation of taxi supply.
Since then, taxi registrations account for around 6 per cent of the overall four-wheeler
market and the decline in overall four-wheeler sale in the last two years can be
partially attributed to this factor.
A Reserve Bank of India (RBI) research said fuel price movement is another big
reason behind decline in car sales.
"We find that at the macro level, fuel price movement affects auto sales negatively,
whereas credit appears to have no significant impact. Based on our analysis, we find
that the recent slowdown can be explained by relatively high fuel prices," the RBI
said.
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The slowdown in the automobile segment is not just restricted to India. China,
Indonesia and Malaysia are also going through an auto slowdown. Countries such as
South Korea, Thailand and Japan recorded negative growth in June 2019 and
marginally positive in July 2019.
According to Society of Indian Automobile Manufacturers (SIAM) data, in the last

five years (FY 2013-14 to FY 2018-19), the average annual growth rate of domestic
sales was seven per cent. But 2017-18 was an exceptional case when auto sales grew
at 14 per cent.
Some experts have said that the crisis of shadow banking (Non-Banking Financial
Companies) and BS-IV norms have also hit car sales. Over three-fifth of vehicles sold
are financed through loans, but in the last 18 months, the supply of easy finance was
disrupted.
BS-IV norms are being implemented across the country from April 1, 2017, and BS-
VI norms (leapfrogging) are to be adopted by April 2020, which have already been
notified on September 16, 2016, by the ministry of road transport and highways.
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OLA AND UBER ARE STILL NOT SAFE FOR WOMEN
It’s 2020 and with the advent of technology, we’ve been blessed with the convenience
of finding a ride at the click of a button. Gone are the days when we had to give-in to
the demands of anonymous taxi and auto drivers, claiming arbitrary prices
disproportionate to distances travelled. But for women, the reasons to resort to new-
age applications goes beyond convenience.
Today, women across the country would rather request a pick-up, instead of taking a
rickshaw or taxi from the streets. Ola and Uber’s rides are women’s means to a safe
journey. Receiving the driver and vehicle details beforehand, receiving a link that can
track the ride, is so reassuring, yet women get into these vehicles knowing there’s a
contingency. A set of possible outcomes arising from a system that provides no
transparency or accountability.
Over the past few years, popular cab services have faced scrutiny for the continued
risk to women’s safety. Several cases reported of harassment, sexual advances and
rape, have brought into question the safety measures implemented by such agencies.
In 2017, the Ministry of Women and Child Development made policy

recommendations adopted by the Ministry of Road, Transport and Highways. The
New Taxi Policy Guidelines included dislodging the central locking system in taxis,
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mandatory fitting of GPS panic devices and the driver’s identification displayed more
prominently. Emergency buttons have been installed in apps for passengers to raise
alarm with safety response teams, in addition to having the 24*7 helpline number to
assist passengers with a risk to their safety.
Yet, all these measures fall short when a woman finds herself in a threatening
situation.
‘Unregistered Uber Driver Rapes 26-year-old Woman‘, ‘Woman Allegedly Forced to

Strip, Driver Booked for Harassment‘. These are only a few instances. Despite all the
cases reported, companies like Ola and Uber have managed to escape without being
subjected to greater accountability. The result? “I knew no one could save her, says
Ola driver accused of molesting Bengaluru woman.”
PANIC BUTTONS WON’T FIX OLA AND UBER’S

SEXUAL-ASSAULT PROBLEM
Vetting of drivers, panic buttons on phones, customer feedback—they’ve tried it all.
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Yet, another woman customer of an online ride-hailing service in India was sexually
assaulted by her cabbie.
On June 01, a 26-year-old architect booked an early morning ride to Bengaluru airport

with Ola. Just before reaching the destination at around 2am, the driver took a detour,
claiming it was a faster route. He then stopped the vehicle at a secluded
spot, allegedly molested the woman, and forced her to strip for photos.
The survivor reportedly escaped by offering to not report the incident—which she did
anyway. The driver was arrested within hours.
Ola’s response was the usual. “We have zero tolerance for such incidents and the
driver has been blacklisted from the platform as an immediate action upon receiving
the complaint,” a spokesperson told Quartz.
For years now, both Ola and its American rival, Uber, have repeatedly condemned
such crimes, helped the police in probes, and weeded out the culprits. But nothing
seems to work as the crimes recur with alarming frequency.
A double-edged sword
Although app-based taxi aggregators have improved woman commuters’ convenience

in a country with abysmal public transport, their safety record remains patchy.
The Bengaluru case is only one among the many reported since the December 2014
rape by an Uber driver sparked a furore across urban India.
CASES
Dec 2014 An Uber driver in Delhi molests a woman returning from work at 9:30pm

and threatens to kill her if she reports the incident to the police. June 2015 An Uber
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driver in Delhi kisses a passenger’s hand then pulls her over as friends watch. July
2015 A woman alleges that the driver of a taxiforsure (now acquired by Ola) cab she
took in Delhi was masturbating while driving. May 2016 An Ola driver allegedly
asked a 24-year-old Belgian woman to shift to the front seat, after which he kissed her
and tried to abuse her. August 2016 A 12-year-old girl is allegedly gang-raped and
strangled by two men in an Ola cab in Kolkata. July 2017 A Delhi-based journalist
says an Uber cab driver suddenly stopped the vehicle on the Greater Noida
expressway and began calling his friends. She quickly informed her own friends who
rescued her. September 2017 A woman is allegedly molested by an Uber driver in
Mumbai. “He touched my hands, tried to come closer,” she says. March 2018 A 22-
year-old Uber driver is arrested in Haryana for allegedly abducting and sexually
harassing a woman after she boarded his cab.
Over the years, both Ola and Uber say that they’ve deployed several measures,
including:
OLA
 Background verification of all drivers, including e-verification using Aadhaar
 Emergency button in the app that alerts a safety response team
 A feedback mechanism for passengers to rate drivers based on their behaviour

and driving skills
 Emergency contact feature to share details of a ride with five of the

commuter’s friends and relatives
UBER
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 Real-time ID checking feature where drivers are periodically asked to share

selfies with Uber. This ensures that the driver behind the wheel matches the
ride-hailing app’s records
 The app’s “share your ETA” feature lets passengers’ kin follow the cab route
 Emergency button connects with the local police and Uber’s 24×7 incident

response team
 Anonymous rating and feedback for a driver
THE GAPS
These measures, though, have failed to be particularly effective, in part due to shoddy
implementation.
“There has to be some lacuna in the system that allowed the crime to happen,”
Seemanth Kumar Singh, additional commissioner of police (east), Bengaluru City,
told Quartz.
For instance, according to Singh, the police had verified the antecedents of the driver
involved in the most recent Bengaluru incident. But the driver didn’t know that he had
been vetted and his details were logged with the authorities, which may have made
him believe he could escape, Singh noted.
“The route of the vehicle was changed mid-way during the ride. The company should
be able to detect such a discrepancy and get an alert about it,” he added. “Companies
should do random checks on their drivers about whether they are following the right
route or taking detours to ensure such things don’t repeat.”
In recent years, the number of cabs on Indian roads has increased manifold as Ola,
Uber, and others have emerged as lucrative employment avenues for young men from
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lower income groups. “Most of the new young drivers come from a patriarchal
mindset. Hence, they need thorough gender sensitisation. It helps to inform the drivers
about dos and don’ts,” said Amitabh Kumar, head of media and communications at
the Centre for Social Research, a Delhi-based women’s advocacy group.
Some also see the need for a stronger justice system.
“Often perpetrators assume they will be able to avoid prosecution. And in many cases,
they do get away with their crime because the survivors do not want to go through a
process of dealing with the police, a long trial, the likely stigma,” said Meenakshi
Ganguly, the south Asia director of Human Rights Watch, an international non-
government organisation.
But Gopal B Hosur, a retired inspector general of police, said there’s only so much
that technology can do: “One must understand that these companies are also trying to
avoid such incidents because they don’t want a bad reputation.”
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ADVANTAGES OF OLA & UBER

Ola & Uber and its competitors have several distinct advantages over traditional taxis:
Convenient and Cashless
Instead of chasing down a taxi on a street—or calling and waiting half an hour for a
car service—e-hail app users are able to hail a car from any location and have it arrive
within minutes.
Because the passenger's credit card is linked to the e-hail account, no cash changes
hands. Upon arrival at the destination, the driver brings the ride to a halt and the
passenger can simply walk out of the car. A receipt is sent via email.
Professional Service
In major cities where the taxi industry is regulated, most cars are later models, well
maintained and chauffeured by professional drivers who have proper commercial
insurance coverage.
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Once a driver accepts an assignment, passengers are able to track a driver's position
and route, and communicate with their driver if necessary. A driver only learns the
passenger’s destination when the fare starts. This takes care of the problem of being
refused access to a taxi because the passenger wishes to travel to undesirable parts of
town.
Unprofessional drivers are weeded out because passengers get to rate the driver’s
performance. A consistently low rating will force a driver out of Uber or its
competitors. In many cities, like Los Angeles, and states with less stringent
regulations (compared to New York), average citizens can provide the Uber service.
This increases the number of drivers and makes more cars available. All of the above
and more foster a positive experience for Uber customers.
Competitive Pricing
Generally, Ola & Uber is less expensive than traditional taxis and car services.
Safer and More Flexible for Drivers
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Safety is the most important advantage for drivers working with Ola & Uber or other
e-hail services. Because the transaction is cashless, a driver doesn't face unpaid fares
or need to carry a sizeable amount of cash that might entice a robber.
Rude, aggressive, and disruptive passengers are weeded out because drivers can also
rate their customers. Consistently low ratings or reports of unsafe behavior toward
drivers can cause deactivation of an account.
Unlike yellow cab taxi drivers who work 12-hour shifts—or black car drivers who are
scheduled by dispatchers—Ola & Uber and other e-hail drivers enjoy greater freedom
and flexibility. Drivers can log in and out of the system anytime and choose their own
hours.
Drivers can avoid expensive taxi rental leases by acquiring their own vehicles. This
means more profit for drivers, all else being equal. Drivers are also spared the stress
caused by favoritism and office politics because the app renders dispatchers
irrelevant.
With such cheap prices and readily available cars, customers get into the habit of
taking a car for very short distances instead of walking and the costs can add up
quickly.
Disadvantages of Ola & Uber

Though there are hardly any downsides for customers, there are a few. Drivers also
face several disadvantages.
Surge Pricing
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"Surge pricing" for Ola & Uber or "prime time pricing" as it is called for Lyft, is
controversial and a major annoyance for most customers. Surge pricing is a method of
pricing in the free market that involves raising or lowering prices depending on
supply and demand. For Uber customers this means how many cars are available
(supply) and how many passengers want to ride in them (demand).
Depending on the intensity of demand, prices for Ola & Uber services may be
increased by a certain percentage. At super peak times, they could even be doubled or
tripled. These fare hikes take effect during periods of high demand for cars, such as
rush hour or during rain and snowstorms.
Trip Cancellations
Although Uber in general is cheaper and more convenient than a local car service or
limousine, trip cancellations by drivers can cause disruptions to a passenger's plans
(e.g., missed flights).
Safety Concerns
Safety concerns have also emerged in many cities and states where the transportation
industry regulations are lax and average citizens can easily enter the e-hail network as
service providers. Although this has a positive effect by increasing the supply of
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drivers, these drivers might not be as motivated to reach high standards of

professionalism and safety.
Low Fares Hurt Drivers
Low prices negatively affect drivers’ earnings. In major cities like New York, drivers
are encouraged by Uber to purchase late model cars that can cost upwards of $60,000
to $70,000 (for SUVs and luxury cars). Some drivers still rent cars weekly from third
parties. They bear most of the costs associated with the service, such as fuel and
repairs. Drivers contribute greatly to the Uber brand.
Initially, drivers used to rely on the surge charges to make up for low fares (as
compared to those charged by limousine or car services) and infrequent trips (as
compared to those of taxis). However, with price competition and the continued
intake of new drivers by Uber and its competitors, drivers’ average earnings are being
pushed downward. This means that drivers have to work longer hours to earn an
income comparable to what they would have earned a year or two ago.
While this means that there is a larger supply of drivers, longer hours behind the
wheel jeopardize the safety of both drivers and passengers. These conditions coupled
with customer trip cancellations—which can cause a driver to miss opportunities to
make money during the busiest hours—can have a negative impact on drivers’
earnings and morale.
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Negative Impact of Price Competition
Price competition can be destructive for any industry. Increasingly, Ola & Uber, and
other e-hail services are engaged in an intense battle to provide the cheapest service.
They are directly competing with existing traditional taxi and car services for both
customers and drivers. This has led to the drop in taxi medallion and black car prices
in India. That is good for drivers, but bad for other traditional taxi and car service
groups.
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LOCATING THE SOCIO ECONOMIC STATUS OF THE DRIVER

PARTNERS ASSOCIATED WITH THE OLA & UBER
PLATFORMS IN INDIA.
SOCIO ECONOMIC LOCATION OF DRIVER PARTNERS.
Table 1: Period of stay, family size and number of earning members in the family.
Table 1, tabulates the period of stay in the city of work, family size of the driver
partners and the number of earning members in the family. The driver partners who
had migrated to their city of work, had an average 8.22 years of stay. The family of a
DP had, on an average 5 members in it. There were on an average 1.49 earning
members per family. We see that although the average period of stay was more than 8
years only 4 out of 10 migrant DPs chose to bring their families along. Most of them
(6 out of 10) chose to remit earnings back home. This combined with a mean age of
32 years says that the migrant DPs find it economically unfeasible to maintain their
families in their city of work.
Less than two earning members per family points towards the dependence of
livelihood on their continuance with the platform economy. An average family size of
more than 5 makes the dependence all the more unavoidable.
All this combined paints a picture wherein the DP’s association with the platform
economy appears to be of a very precarious nature.
It is important for a country like India to bid on its diversity and to do that inclusivity
is extremely important. To understand this inclusion aspect, we covered up the social
institutions of religion and caste. While capturing this framework, the study found out
that 80% of the interviewed driver partners were Hindus and 70% of the respondents
belonged to the general category or from the forward castes. Also, the study has
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incorporated the literacy levels of the driving partners so as to check who make up
this entire workforce of an entirely new platform and also, to see if better education
level lands you up with a better job opportunities in cities like Hyderabad and
Kolkata. The study found out that 70% of the respondents has attained at least
education until secondary level. 70% is a huge number for us to deduce the notion that
education plays a very vital role towards sustenance in the work culture which these
cities provide.
The mean age of the respondents came out to be 32

years.
A little more than 4

out of 10 driver
partners were
migrants.
ENTRY
OWNERSHIP
When it comes to the question of ownership; our vantage point should be the three
kinds of associations which are at work between the taxi service providers and the
aggregators. Firstly, there is the category of the driver partners who work for the
secondary aggregators and are generally paid on a per trip basis— The study found
out that 42 of the respondents followed this structure of ownership. The second
category is that of such driver partners who own the vehicles they drive (Driver cum
Owners). 86 of the respondents belonged to this category. The third category is that of
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contractors (secondary aggregators) who sub-contract the taxi service to driver

partners and are the owners of the vehicles and the study found out that 3 of the
respondents followed this framework of ownership association. However, the study
could also find only one person who had rented a car for operating it in this business
and for statistical reasons, this category has not been explored in our report.
INCOME AND NATURE OF EMPLOYMENT
In order to establish and understand the relationship between hours of work put in per
day by each driver partner, residential status and income that the driver-partners
derive from the cab business we tabulated the data and tried to figure out the
correlation among the variables hence chosen for the study. The study found out that,
the Income-Ownership cross tabulation (Table 2) establishes a strong positive
correlation between the level of income and the ownership status. This means that the
driver partners who owned the cars that they drove had more income as compared to
those who worked on
contractual basis. Similarly Income-Working Hours cross tabulation (Table 3) tells us
that more the hours a driver-partner puts in per day, the greater his/ her likelihood of
earning more.
A positive correlation between the residential status (non-migrant) and the hours of
service per day that a driver-partner is able to put in, along with hours-of-work-per-
day and the average monthly income that a driver-partner earns (Table 4) points us
towards a favourable economic environment for a non-migrant DP who is both able to
and ready to put in more hours of work as compared to the migrant DP.
Income v/s Working Hours

Hours/day
<8 8-12 12+ Tota
hours hours hours l
Incom 0-15k 3 7 7 17
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e
15- 9 25 33 67
30k
30k+ 5 11 29 45
Total 17 43 69 129
Table 3: Income, Working-Hours cross tabulation.
Almost 6 out of 10 reported
to be the sole earning members
of their family.
PAYMENTS,
REWARDS AND
BONUS
Both the tax payable to the government and the commission charged by the platform
are deducted from the trip bill. In the illustrative screenshot (Fig. 2) of an Uber trip we
have commission being charged at the rate of 20% and the tax at the rate of 7%. Table
5 lists the payments, rewards and bonus for the owner-cum-driver, contractor and the
lessee driver. With the current rates of commission, taxes and the fuel price, the
business remains sustainable for only for the category of ownercum- driver as he
saves on driver fee, and is the direct recipient of the incentives and the direct
beneficiary of the rewards.
The lessee driver works more like an employee of the contractor and is paid on a per
trip basis as mentioned earlier. The contractor who takes up bulk of the investment
(vehicle, fuel, mobile phone, data charges) was reported to be left only with the
incentive amount after paying for the driver charges and the other recurring costs like
fuel, maintenance and data charges.
Fig. 1. Source: Uber S-1/A filing, U.S. Securities and Exchange Commission
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Fig. 2: An Uber Trip Detail
INCENTIVES
To understand the incentive model, we tried to gather data and qualitative inputs from
the driving partners. The screenshot to the left (Fig.3), that was provided to us during
the course of the study is dated December, 2016 and is representative of an incentive
model that was designed to help populate the business in its early days.
“In Ola incentives have been cut and Ola
leased vehicles are getting preferential
bookings. Uber has also reduced
incentives recently…”—Prakash Goud,
Owner-Driver, Hyderabad
Keeping the screenshot provided in the rearview; the study would try to encapsulateit
by underpinning a gaming analogy to describe how the trip-based incentive model has
evolved; as in the starting stages of a game the tasks are less effort intensive andit
becomes increasingly difficult to meet the targets in the subsequent stages, the Uber
incentive model has evolved along the same lines. As Dhillon (2018) points out; in
the initial phases the incentive was as high as ₹ 2000/day for meeting a daily target of
a minimum of 12 trips. Now we have DPs working for more than 4 times the earlier
target (56 trips, Table 5) to be able to earn an even smaller incentiveamount (₹ 1200-
1900). This combined with actual earnings which can go as low as ₹7 per kilometre
of ride (Fig. 3) point towards a precarious and unsustainable

situation for the DPs.
The Uber Incentive Model
Time Interval Monday to Thursday Friday to Sunday
Target 56 Trips 40 Trips
Incentive 1200-1900 1000-1400
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Table 6: Trips and Incentive Fig. 3: An Uber Trip Detail
The Ola Incentive Model

Minimum Minimum Business Takeaway after Commission
Business Guarantee (20%)
1200 2200 1700
2200 3750 3000
2900 5300 4160
Source: Md. Tayub Ansari, Ola Owner-Driver, Kolkata

Table 7:
The Ola Incentive Modelhe Ola Incentive Model
The Ola incentive model is designed around the Minimum Business Guarantee
(MBG) scheme wherein a driver partner is assured of a minimum amount after
meeting a particular target (either number of rides or or particular earnings). For
example the ride based MBG scheme used to operate on a per day basis with with 12
to 14 trips per day resulting in a Rs. 3000 MBG to the driver. The driver used to retain
Rs.1200-1800 after meeting the fuel expenses and meeting the commission charges of
Ola. The DPs reported that Ola charges us a commission both on a per-trip basis and
then on the MBG amount.
The earnings based scheme as tabulated in table 7 as reported in the city of Kolkata
becomes operable after a minimum of 4 trips per day. For example, if the DP manages
to get a bill earning of 1200 then Ola assures him of a MBG of Rs. 2200 from which a
20% commission is charged by the platform resulting in total earnings of Rs.1700 to
the DP and included the fuel expenses.
Average Monthly Income
Lessee Driver 18,970
Driver-cum-owner 31,173
Table 8: AMI
From the survey, the earnings after meeting all the expenses was reported to be an
average of Rs.18970 for the lessee drivers and Rs.31,173 for the driver-cum-owner.
These numbers have to be read in the context of an average family size of more than 5
and less than 2 earning members per family. [Table 1]
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Fig. 4: An example of an Uber incentive structure
PAYMENTS, REWARDS AND BONUS

Table 9 lists out the various payments, rewards and bonuses as availed by the various
stakeholders in the platform economy. In case of the lessee driver partners, the
payment
by the platform goes into the contractor’s account and he/she is paid on a per trip
basis
(₹60/trip). The incentive amount and the bonus is appropriated by the contractor; as
with the current commission rate charged by the platforms, it is the only profit that the
contractors make after paying for the expenses. As Ram Vilas Paswan (Uber Driver
Partner, Kolkata) put it;
“All of the payments go to the owner, we only get paid on a per trip basis.”
Given the steep commission rate, number of rides dependent bonus opportunities and
rewards linked to customer ratings; it can be said that the model which pioneered and
situated itself at a position wherein it made the driver partners eager to work hard to
earn more, has now turned exploitative as the same driver partner now has to work for
more than 12 hours a day, more than 6 days a week to be able to support his/her
family. This makes it difficult for the driver partner to sustain as the pressure on him
is not only
physical; because he is working for more hours to earn a bit more, but wrecks havoc
on
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him both economically and mentally. On the whole, given the pleasure-pain equation
by the utilitarians, we can easily deduce that, if the task has less provision for
happiness and is painstaking, there are a lot of chances that the driver partners might
just withdraw
from this entire business model which would on the other hand would lead to a failure
of the entire platform economy ecosystem.
Income Owner-cum-driver Contractor Les

Payment Sum of income on all The entire The
the trips (minus the earnings of the paym
commission to the lessee driver deci
platform on each trip deducting the the
and the tax payable to salary of the cont
the government). lessee driver.
Rewards Easy availability of Impacted by the star Mor
rides on maintaining an rating of the lessee avai
average star rating (of driver. mai
four and above) by the opti
driver. ratin
Bonus Incentives as Incentives as No b
provided on provided on ince
completion of a completion of appr
certain number a certain cont
of rides. number of
rides (by the
lessee driver).
Table 9: Payment, reward and bonus in the business of platform economy
RELATIONSHIP WITH STAKEHOLDERS
TAXI UNIONS
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Ola driver partners in Kolkata have a union which is supposed to look after their
interests. When surveyed only 2 of the respondents (1.7% of the sample size) found
the
taxi union to be of any help. A majority of the respondents (58%) said there was no
union on which they can bank to act as their representatives. A sizeable chunk
(31.1%) reported of not being associated with any union. Quite a few driver partners
reported of
having their own WhatsApp groups, on which they call for help when in dispute with
a
customer. Again these WhatsApp groups have limited use as other group members
need to be in the vicinity to be of any help. Uber driver partners were not members of
any union in Kolkata. Taxi unions were reported to be non-functional in Hyderabad.
Most of them said that they have to visit the nearest office of the platform to resolve
their issues, whether it be low ratings, or some customer complaint or payment issues.
Fig. 6: Experience with the Taxi Union(s)
CUSTOMERS
Ola drivers reported a particularly bad experience with customers. This was explained
as resulting from a false sense of entitlement amongst the employees of certain firms
with which Ola had arranged for commute arrangements.
More than 7 out of

10 driver-partners
joined the platform(s) in
search of better pay. 60
T.Y.B.A.F
Fig. 7: Experience with the Customer(s)
CONSTRAINTS
1 out of 2 driver-partners
knew of someone who had ended t h e
i r a s s o c i a t i o n w i t h t h e
platform(s).
Familiarity with the application and the difficulty for some to operate and understand
the way it works was also one of the quoted reasons for quitting the service.
Reasons as quoted by the driver partners include the depreciating incentive structure,
and issues with customers. Issue with operating the application which requires a
certain technical acumen was another reason cited for some quitting. Issues with the
police was
found to be a major irritant in our survey, specially in Kolkata. Many driver partners
also quoted this line of livelihood as an unstable income source and therefore the
attrition.
The frequency of bookings depends upon a rating system wherein if the rating falls
below 4.5 (out of 5) then the number of rides allotted goes down as the driver is
downgraded in the preferential rating system. This creates a peculiar sort of dispute
wherein the primary complaint of the driver partners was that their side of the story
has
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not got any weightage in the scenario of a customer complaint.

Pick up from doorsteps is another situation which was highlighted in the focused
group
discussion (FGD). Going into congested and narrow lanes wastes a lot of time and the
driver partners mused that with the kind of technology available with the platforms
they
can easily ask the customers to come to some convenient pick up points.
The driver partners were of the view that on the whole the platform has turned
inconsiderate to their needs and low ratings leads to poor business which makes it
difficult for them to improve their ratings.
GRIEVANCE REDRESSAL MECHANISM

AGAINST CUSTOMERS
Customer related grievances are generally reported by the DPs to the platforms. A
often repeated complaint of the DPs was that the platforms ignore the complaints filed
by them but in case a customer complaints against them then either their ratings are
downgraded or their app access is blocked. To get the the app unblocked the DPs have
to visit the nearest office of the platform, explain their side of the story and after
having spent at least half-a-day they are either successful in getting their access tot he
application reactivated or are forced to leave the platform economy altogether.
Another way in which DPs deal with customer issues is with the help of other drivers
if available nearby. Such cases arise mostly in respect of customers who are not
willing to pay the agreed upon fare. Even though they are assured that some action
will be taken against such unruly customers the DPs are not communicated to about
what, if any, action was taken.
AGAINST PLATFORM(S)
DPs file their grievances either through the app or they physically visit the office to
lodge their complaints. The grievances included; complaints against riders, non-
issuance of ride cancellation fee, fare not accounting for the toll charges and fare
issues.
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“The company is not bothered about the distance between the current location
and the pick-up location. It doesn't consider traffic jams when customers cancel
rides due to delay in pick up. No parking areas force the drivers to keep
moving…”—DineshKapoor, Ola Driver Partner, Kolkata
Fig. 9. Complaints
Source: Screenshot of a Uber Driver Partner, Hyderabad
PLUS POINTS
Quite a few DPs who chose to respond to this query said that a positive that could be
taken out of their association with the platform is that they frequently got rides which
was not the case with private taxi service providers. Uber had better ratings amongst
driver partners than Ola as it apparently provides them with nearby bookings as
compared to Ola which arranges far away pickups which leads to an increase in cost
on the part of the drivers, both in terms of time and the fuel burnt to reach the spot.
Another plus point pointed out was the chance to get to know the routes of the city.
More profit than the previous occupation was also one of the quoted plus points. The
idea of operating an air-conditioned vehicle in which they do not have to itch was also
found to be appealing to some driver partners.
“Maan Samman, “Better pay opportunities than the Kaali-

Earnings according to the amount of effortPeeli taxi service.”—Ram Vilas Paswan,
you put in. Can work for the better future ofUber Driver Partner, Kolkata
kids”. — Dinesh Kapoor, Ola Driver Partner
(Kolkata)
“Better behaved customers.

“I now have a better paying job and I am Everything is worked out for you, including the pick
able to send my kids to school”. up and drop
—Ola Driver Partner (Hyderabad) points”. Uber Driver Partner

(Hyderabad)
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PROBLEMS FACED BY OLA AND UBER

The problems of Ola and Uber commuters.
Vetting of drivers, sharing the live locations, panic buttons for safety – they have tried
it all. But, are the problems of Ola and Uber commuters resolved? Well, no, rather
with time, new kinds of problems are arising for the users. A whopping percentage of
the population thinks that problems arising due to Ola and Uber are far from over
because they are not being addressed.
Let’s highlight the problems regularly faced by users of app based aggregators like
Ola and Uber one by one.
WOMEN SAFETY
The first thing which strikes my mind while booking a cab is regarding my safety. So
many issues have been reported by women commuters who have faced severe
problems regarding their safety. In fact, some women who have booked cabs at night
have been raped while riding the cab or the drivers have misled them to wrong
destinations. Women’s safety has been a pertinent issue for which no concrete
solutions have been given. So, riding cabs at night specifically for women passengers
is still fraught with risk.
DROPPING AT WRONG LOCATIONS

This is the most germane issue we all come across. Despite using the GPS navigation,
drivers often ask where you want to go or what route is to be taken. It is not like we
refrain from telling routes, but many a time a passenger is herself not aware of the
way. Though it is the responsibility of the driver to drop the passenger at the right
location, most of the times (specifically in pool rides), drivers drop at wrong locations
causing inconvenience to the passengers.
TAKING TOO LONG TO ARRIVE

The third big issue concerning the cab rides is the ‘wait’ involved. Specifically, when
the customer is booking the ride through the app, the time shown for a Mini or Micro
ride might be just 3 or 4 minutes. However, after the booking is confirmed, it might
increase to 10-12 minutes. On top of that, cabbies take even longer to arrive.
Moreover, no matter what pickup location you enter, they will always ask you to
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arrive from where they can comfortably pick you up. Sometimes they take so long to
arrive that you are obligated to cancel the ride and look for an alternative. In fact,
interaction with daily users reveals that a common tactic is for the cabbies to
deliberately come and park the car very near to the pickup spot, usually a colony gate,
rather than actually reaching the spot. The commuter gets a false impression that the
cab is about to reach her and is ultimately forced to cancel the ride. And pay
cancellation charges too for no fault of hers.
CANCELLING RIDE WITHOUT NOTICE

This one is the most frustrating! As per a survey mentioned in the Financial Express,
various commuters face this issue usually every day. Cab drivers take a long time to
arrive and at last, the ride is called off by the driver without citing any valid reason. In
case of an emergency, you are left bewildered as it becomes difficult to procure
another ride right away. Again, a common practice adopted by the cabbies is to wait
for the passenger to call him up before arrival. They then force the passenger to reveal
the destination, and promptly cancel the ride if it doesn’t ‘suit’ them! This wastes
precious 15 minutes or so, and the passenger is then forced to book another cab.
BEHAVIOURAL ISSUES OF THE DRIVERS

Coming drunk and/or sleepy for the pickup is par for the course for many cab drivers.
Many times, drivers are not in a position to drop you to the destined location. And the
worst part is there is no way to resolve this problem. All you can do is contact the
customer support and file a complaint but this whole process is so time-consuming
that the actual work suffers because of this uninvited issue for the day. Often, you just
receive a mail saying your complaint is being looked into, without any subsequent
communication. Also, during the rides, drivers sometimes become too friendly and
start conversing with you. You feel like something amiss could take place because the
driver is being too frank and friendly. And though apps like Ola provide post-paid
facility, sometimes the cab driver asks in advance if the payment will be by cash!
ASKING FOR DIRECTIONS

This sounds funny and, psst, a lot of memes have been made on the same issue. In
fact, they are trending on social media just like the problem is trending in our lives.
As most of the drivers aren’t well educated and trained, they start asking for
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directions. Passengers like me who themselves aren’t aware of most of the locations
contribute by looking at the GPS navigation system. Also, a problem could be the
foreign accent of the GPS voice instruction system, which most of the drivers are
unable to understand. And when they don’t understand the pronunciation of a ‘Benito
Juarez Road’ or a ‘Joseph Broz Tito Marg’, they obviously miss the turn.
HOW TO RETRIEVE LOST ARTICLES

Sometimes a passenger carrying multiple items might forget a file, folder, backpack
or bag in a hurry to disembark at their destination, especially the airport or the railway
station. And the cabbie also may not notice the item lying on the backseat till the time
he picks up the next passenger, which may be few kilometres away. There is no
central customer care number that the passenger can call up for a quick resolution of
this problem.
SURGE PRICING
Surge pricing, especially during peak hours, is a great problem which is not going to
be fixed ever. It just takes a little rain to inflate the price of cabs to double. Moreover,
if it is the office timing, you are surely going to regret booking an Ola or Uber in
sharing or otherwise.
Although the cabs have brought a lot of convenience to the life of citizens in the
metropolitan areas, it remains a fact that much trouble is also caused by these cabs.
The quality of services deserved by the customers is not being delivered, which is
why people are unhappy with the cab facility providers. It is being realized that
service providers like Ola and Uber are basically focused on making money, and not
really interested in addressing and providing solutions to these recurring problems.
Maybe they think they can get away with it in a ‘third world’ country. However,
paying customers deserve a better deal, rather than lip service!
CHALLENGES FACED IN UBER / OLA BUSINESS IN INDIA
There are always two sides to a coin , so when there are so many opportunities that
the two companies have to offer , there will certainly be some challenges too , or
maybe a lot , Right?
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I was working at a pretty decent position at a a very reputed E-Commerce company

when i started this business alongside . Thinking of this as a very easy business to run
alongside a job and a very quick way to make a few extra bucks to add to my salary , I
did not do too much research about the challenges faced by those already in the
business. Neverthless ,without thinking about the challenges and constraints I
straightaway got into the business and learned not just about the challenges but came
up with some solutions too .
THE PAPERWORK - Starting with the Gumasta Shop Act License which takes a
few "Government office ke chakkars" to the RTO procedures to get my private car
converted to a tourist permit vehicle . The paperwork needs a lot of time . If you're
doing a job alongside , you will need someones help to get the paper work done . In
my case , I sincerely thank my father for helping me get through this.
FINDING A DRIVER - This one i suppose has to be the most difficult and under-
rated tasks of the lot when looking to start this business . Finding a driver was going
to be too easy is what I apparently thought , this turned out to be my biggest
nightmare . Turns out , it is easy to get drivers for your private cars and even for T-
permit vehicles for long distance driving but Ola-Uber is not everyones' cup of tea .
Most drivers who have a TR-License will always tell you that it was a pain in the ass
driving for these companies and they're not interested . Even with scope to earn way
more than how much they earn driving private vehicles or doing badli duties these
drivers were still not willing to drive on Uber-Ola .
Finally , I came across this website called babajob.com , who helped me get a driver
after a paid their 1499/- subscription fee . Unfortunately , the driver did not stay for
too long and took as many as 50% day leaves during the period he worked for , which
surely did not exceed 20 days . Similar cases kept happening for six months . Finding
drivers became slightly easier , making them stay was the more difficult task now .
Finally have a driver who's stayed for more than two months now , but the business
isn't as fruitful as before.
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SUSTAINABILITY - With Ola & Uber changing their incentive structures and
owners who have other drivers driving their cars barely being able to pay off salaries ,
EMIs & fuel expenses and to add to it the reducing number of trips , It is getting
difficult to survive in the business and there are many people who're driving now only
to meet their basic expenses .
LITERATURE REVIEW
Call taxi system in India has grown significantly in India and infrastructure growth,
growth of middle class, increasing disposable incomes and growing GDP are some of
the factors responsible. The rise of the BPO industry is one of the reason to growth of
this sector because of odd working hours. This growth can be seen more in
metropolitan cities of India (Rahman, 2014) and there is intense competition among
various operators like Ola, Uber, Radio cabs, Yellow cabs and Meru etc. So to sustain
in this competitive market it is necessary to understand the users of the rental cab
service. Various studies and researches have been done to understand the factors
important while choosing a rental car.
Kumar and Kumar (2016) in their study analysed the relationship between dependent
variable coupon redemption behaviour and independent variables- innovativeness and
price consciousness and found that the customers are interested in selecting the cab
which offers them more benefits. Price and coupons are very vital for the customer to
sustain in the same cab service. They concluded that even brand image plays a vital
role to retain in the service.
Shukla et.al (2017) discussed that “Every other day in India, there is a new start up
offering efficient cab service to the citizens operating in urban and rural lifestyles.
This raises a question that is India going through a possible 'Taxi Revolution'’’.
Presently, both Ola and Uber cabs are
following expansion strategy to augment market share and attain economies of scale
and simultaneously providing customer satisfaction.
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Hanif and Sagar (2016) revealed that there was demand for Call-a-Cab service offered
by Meru Cab. The cab services are proving security through global positioning system
(GPS) and women taxi drivers for women passengers especially during night times.
Call taxi app (CTA) helped in increasing perceived usefulness, ease of use,
playfulness and subjective norms (Peng et. al.,2014).This also helps in convenience of
tracing user and service provider (Chen ,2014). A study by Lu et al (2015) suggested
that self- service mobile technologies give control to commuters to access lot of
information with the help of technology. Horsu and Yeboah (2015) had revealed in
their study that driver behavior have negative correlation on customer satisfaction in
Ghana. Other variables continuous service, comfort, reliability and affordability have
an impact on customer satisfaction with regard to minicab taxi. One study by Paronda
et al (2016) identified the key performance indicators of conventional taxis which
includes reliability, travel speed, passenger expenses and quality of service. Study
based on surveys for 30 days concluded that Uber and GrabCar offers better quality
services than conventional taxis. For Indian market similar studies have been done, a
research by Hanif and Sagar (2016) suggested that cab services has a huge potential
for growth in Mumbai targeting middle and affluent class. Consumer not only use cab
service for commutation but also for visiting a shopping mall, attending late night
party or going out on special occasion. Study also showed that customer satisfaction
level is very high, showing positive sign for future growth and expansion of business.
Aggregator taxi companies tied up with the mobile wallets companies like Free
Charge, PayTM, Mobikiwiki which helped in providing hazel free ride to customers
by providing customers easy payment options with offers and discounts for rides
(Kavita and Rajeswari ,2016). Consumer’s preference for online transaction push
Uber to create taxi service portal as well as Uber is also started spending on various
marketing strategies and information technology.
Ruchi et al (2017) studied various factors of dynamics of Indian taxi markets such as
pricing, their revenue models, market share etc. Utsav Pandya et al (2017) identified
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technology trends, safety, and price, ease of availability, comfort and payment options
affecting public taxi market. Sarit Prava Das et al (2017) identified convenience,
quality services, transparency and safety as most important parameters for selecting
pre booked taxis. A study by Kumar and Kumar (2016) showed that consumers were
interested to redeem coupons while selecting cab services and were comfortable to
redeem coupons through mobile apps while booking cab services. With customers,
service providers are also important in any service industry, in this regard a research
by Ruchika Malik (2017) identified that retaining drivers by initiatives like monetary
awards of influence customer decision. Ola is using reward systems to motivate their
drivers thus motivating them as well as involving them in resolving the customer
grievances to build a loyal base of drivers. On other side Uber offers rewards and
discounts under their Uber CLUB program. This program is not only design impact
drivers but is also designed to help their family by providing them various offers
related to automobile insurance, vehicle maintenance, lifestyle, health and wellness
to their everyday life. There are three categories Silver, Gold and Diamond, based on
the quality and performance of each driver. One more comparatively study of Ola and
Uber by Allamdas Rohit H. (2017) suggested that as Indian consumers and highly
price-sensitive and very less brand loyal, companies need to design new packages to
attract new customers and to keep existing customers. Similar research by Shukla et al
(2017) on OLA and UBER suggested, to adopt highly innovative and customer-
centric strategies to increase market share
Rajendra Aklekar (Oct 27,2010) With the increasing number of private vehicles on
the roads the demand for yellow and black taxis has reduced. In 20th century there
were no crowds, no one was in hurry. The roads were wider and no traffic jams at all.
Today, it the scenario is total opposite to the one before. The fares top the list of
complaints, followed by drivers’ rude behavior, charging excess luggage fare, and
taking longer routes to reach a destination. Saritha Rai ( Jan 15, 2015). Cabs growth in
India is tremendous, the case of Delhi Rape in the cab which resulted in booming the
market for its competitors (OLA and TaxiForSure). Data reveals that Ola was offering
60,000 cabs in 52 Indian cities and has aggressively announced that it plans to touch
200 cities by end-2015. Of the 52 cities Ola currently operates in, 34 new cities were
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T.Y.B.A.F
added in the past three months, assuming the pace of its expansion. On an average
200,000 rides daily, offers 60,000 cabs and says it has made “entrepreneurs” out of
70% of its drivers. In other words, 70% of its drivers are cab owners who operate as
independent businessmen, unlike many large-fleet Indian cab firms like Meru which
operate their own taxis with hired drivers.
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HYPOTHESIS
1.H0- The growth of ola & uber does not contributes to the Indian Economy.
H1- The growth of ola & uber contributes to the Indian Economy.
2.H0 - Customers are satisfied with Ola&Uber Cabs services in Mumbai city.
H1 - Customers are not satisfied with Ola&Uber Cabs services in Mumbai city.
3.H0- Drivers are satisfied with Ola&Uber Cabs services in Mumbai city.
H1- Drivers are not satisfied with Ola&Uber Cabs services in Mumbai city.
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T.Y.B.A.F
RESEARCH METHODOLOGY
This research is focused on the growth of Ola and Uber towards Indian economy, and
problems, interest and satisfaction of the users and specifically targeted to working
professionals. After literature review gaps have been identified and questionnaire has
been designed to collect the data. Primary data for the study was collected through
online survey method, using a structured questionnaire which was designed based on
literature review. All the responded were from Mumbai and data was collected from
February 2020 to March 2020.To full fill the Objectives and based on literature
review following hypothesis have been designed.
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T.Y.B.A.F
METHODS OF DATA COLLECTION
The data was collected through Primary and secondary methods. The research tool to
collect primary data was structured questionnaire consisting questions related to socio
economic life of Ola & Uber and Customers satisfaction , in Mumbai city. The survey
was conducted in the month of February 2020. Secondary data was collected from
published literature, internet etc.
SAMPLE DESIGN
The sample size for the present study is 100 Units (sample respondents) Ola Cabs
customers in Mumbai city, India. Further this sample was bifurcated into 50 Units
(sample respondents) of males and 50 Units (sample respondents) of females .These
units were selected using convenience sampling technique.
DATA ANALYSIS
The Analysis based on 100 Units (sample respondents) customers outlook regarding
Ola&Uber Cabs services in Mumbai city is as follows:
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T.Y.B.A.F
DEMOGRAPHIC ANALYSIS OF THE RESPONDENTS:
Interpretation- From the above pie chart we can conclude that the growth of ola &
uber affects the Indian economy.
uber helps in contribution to GDP.
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T.Y.B.A.F
uber increases the sales of vehicals.
uber helps in contribution to tax revenue.
uber helps in GST.
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T.Y.B.A.F
Interpretation- From the above pie chart we can conclude that the maximum of the
people use ola & uber for travelling.
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T.Y.B.A.F
Interpretation- From the above pie chart we can conclude that the Distance &Transit
Bill-GPS will be the better billing method for cab transportation.
Interpretation- From the above pie chart we can conclude that the all the above
features would help us.
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T.Y.B.A.F
Interpretation- From the above pie chart we can conclude that the price is an
important factor for choosing a form of transportation.
Interpretation- From the above pie chart we can conclude that maximum of the
people use cab for the personal use.
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T.Y.B.A.F
Interpretation- From the above pie chart we can conclude that convient influence to
opt ola & uber cabs for maximum people.
Interpretation- From the above pie chart we can conclude that maximum people are
satisfied with the ola & uber cabs.
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T.Y.B.A.F
Interpretation- From the above pie chart we can conclude that the salary of the driver
will be 10000 to 20000 Rs.
Interpretation- From the above pie chart we can conclude that the ola & uber drivers
get their salary on time.
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T.Y.B.A.F
Interpretation- From the above pie chart we can conclude that the drivers get their
salary by both the factors.i.e-by cash and bank.
Interpretation- From the above pie chart we can conclude that there is no deduction
in the salary of cab drivers.
Interpretation- From the above pie chart we can conclude that the household expenses
are the major expenses of the driver.
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T.Y.B.A.F
Interpretation- From the above pie chart we can conclude that 5000Rs will be the
saving of the drivers.
Interpretation- From the above pie chart we can conclude that the maximum drivers
owns the vehical.
Interpretation- From the above pie chart we can conclude that the most of the drivers
are working in ola & uber services for more than 2 years.
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T.Y.B.A.F
Interpretation- From the above pie chart we can conclude that the most of the drivers
come to ola & uber services through reference.
Interpretation- From the above pie chart we can conclude that maybe the drivers get
the job satisfaction.
Interpretation- From the above pie chart we can conclude that the maximum
customers behave angry when the cab drivers are late.
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T.Y.B.A.F
Interpretation- From the above pie chart we can conclude that the cab drivers call
the customer and hand it to them when they left their luggage accidently.
Interpretation- From the above pie chart we can conclude that drivers manage their
petrol expenses through ola & uber reimburses.
Interpretation- From the above pie chart we can conclude that drivers work 8 to 10
hours in a day.
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T.Y.B.A.F
Interpretation- From the above pie chart we can conclude that maybe the drivers
form any union.
Interpretation- From the above pie chart we can conclude that the innovation takes
place due to the growth of ola & uber.
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T.Y.B.A.F
Interpretation- From the above pie chart we can conclude that there is a
technological changes in country due to the growth of ola & uber.
Interpretation- From the above pie chart we can conclude that maybe government
provide scheme for the ola & uber.
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T.Y.B.A.F
uber plays a significant role in investment & technology for the country.
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TESTING OF HYPOTHESES:
H0a: The growth of ola & uber does not contributes to the Indian Economy. As
reflected in the above diagram; difference in the proportions of responses is highly
significant, Hence H0a is not accepted to test the homogeneity of proportions of
responses of the respondent customers.
Inference: The growth of ola & uber does not contributes to the Indian Economy.
Hence the alternative hypothesis, H1a: The growth of ola & uber contributes to the
Indian Economy is accepted.
H0b: Customers are not satisfied with Ola&Uber Cabs services in Mumbai city. As
reflected in above diagran; difference in the proportions of responses is highly
significant, Hence H0b is not accepted.
Inference: Customers are not satisfied with Ola&Uber Cabs services in Mumbai city.
Hence the alternative hypothesis, H1b Customers are satisfied with Ola&Uber Cabs
services in Mumbai city is accepted.
H0c: Drivers are satisfied with Ola&Uber Cabs services in Mumbai city. As reflected
in above diagran; difference in the proportions of responses is highly significant,
Hence H0c is not accepted.
Inference: Drivers are not satisfied with Ola&Uber Cabs services in Mumbai city.
Hence the alternative hypothesis, H1c Customers are not satisfied with Ola&Uber
Cabs services in Mumbai city is accepted.
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FINDINGS:
1. Ola & Uber contributes to the Indian Economy (Due the the selling of
vehicals,by paying taxes to the government of india,and by many more
factors.)
2. Most of the females customers ( 74 percent ) always prefer Ola Cabs services.
3. Most of the males customers ( 48 percent ) most of the times prefer Ola Cabs
services.
4. Safety and convenience is the major factor which influence female

respondents to choose Ola&Uber Cabs.
5. Convenience is the major factor which influences male respondents to choose

Ola&Uber Cabs.
6. Most of the customers are satisfied with Ola Cabs services in Mumbai and not
that much with the Uber.
7. Drivers of the cabs are not that much satisfied because the salary they are been
getting are not that much. that it can fulfill their expenses and dreams.
8.
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T.Y.B.A.F
CONCLUSIONS:
Technology has changed the lifestyle bring ease and convenience at affordable price.
Taxi aggregators are bringing revolution in the taxi industry creating a tough
competition for everyone in the industry. Ola Cabs and Uber are major players in this
industry. From the research it is concluded that customers prefer Ola & Uber Cabs in
Mumbai city. Safety and convenience are the major factors which influence customers
to select Ola & Uber Cabs services. Customers are satisfied with Ola Cabs services in
Mumbai & not that much with the Uber cabs. Drivers are not that much satisfied with
their salary as they are not able to fulfill their other expenses in the salary they are
getting now. And the main factor is the Ola & Uber cab companies are contributing
to the Indian Economy in many ways which is been benefited for the country.
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T.Y.B.A.F
SUGGESTIONS:
1. Ola & uber cabs should provide more offers.
2. Surge prices/high peak hour charges should be decreased even though it helps

the customers to get cab at peak hours but the fare which is paid by a customer
is not less ! And travelling in peak mode is unexpected for a customer !
3. As for now the securities are made strong ! But these companies have a gps
system but temporary gps are directly maintained and tracked on the mobile
phone as its a phone a driver can kill the mobile phone at anytime once the gps
is set off on the mobile phone they can never ever track the driver unless he
sets it on again !
Hence it would be great if the gps is connected directly to the car ! As most of
the call centers do ! Because here driver doesn't have an option to switch it
off!
Improving gps system would be a great security to women and hence drivers
wont misbehave with the female customer !
4.
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T.Y.B.A.F
WEBILOGRAPHY
https://economictimes.indiatimes.com/
https://www.hindustantimes.com/
https://www.wikipedia.org/
https://www.investopedia.com/
https://www.academia.edu/
https://in.linkedin.com/
https://www.scribd.com/
https://www.marketing91.com/
https://www.quora.com/
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T.Y.B.A.F
ANNEXURE
1.Does the growth of ola & uber affects the Indian economy?
 YES
 No
 Maybe
2.Does the growth of Ola & uber helps in contribution to GDP?
 Yes
 No
 Maybe
3.Does the growth of ola & uber increases the sales of vehicals?
 Yes
 No
 Maybe
4.Does the growth of ola & uber hepls in contribution to tax revenue?
 Yes
 No
 Maybe
5.Does the growth of ola & uber hepls in GST?
 Yes
 No
 Maybe
6.Which cab aggregator do you typically use?
 Ola & Uber
 Meru Cabs
 Taxis
 Rented Cabs
7.What will be the better billing method for the cab transportation?
 Traditional meter
 Distance & Transit bill -GPS
 Common Fare
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T.Y.B.A.F
8.Which safety & security features would help us?

 GPS tracking devices connected on the vehicals
 CCTV camera to monitor the drivers behaviour
 Panic app option
 All of the Above
9.What factor is most important to you when choosing a form of transportation?
 Price
 Ease of Use
 safety & security
 All of the Above
10.For what purpose do you use cab?
 Personal use
 Professional use
11.What influence to opt ola & uber cabs?
 Convient
 Brand
 Quick & Safe
 Easy to book
 Less cost
12.What is your Satisfaction Level towards Ola & uber?
 Satisfied
 Highly Satisfied
 Not Satisfied
13.What could be the salary of Ola & Uber Drivers per month?
 10000-20000
 20000-30000
 30000 & Above
14.Do you thick Ola & uber drivers get their salaries on time?
 Yes
 No
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T.Y.B.A.F
 Maybe
15.How do the drivers get their salary?
 By cash
 By bank
 Both
16.Is their any deduction in the salary of cab drivers,If yes than what?
 PPF
 Gratuty
 Others
 No
17.What could be their major expenses of drivers?
 House hold expenses
 Children education
 Insurance
 Interest on loans
 Any other
18.What will be the driver's savings?
 <5000
 5000-10000
 >10000
19.What do you think do the driver's own the vehicle?
 Yes
 No
 Maybe
20.How long does most of the drivers are working in Uber/Ola services?
 Less than 1 year
 1-2 years
 More than 2 years
21.What do you think how they enter into Uber/Ola services?
 References
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T.Y.B.A.F
 Direct interview
 Others
22.Do the drivers get job satisfaction?
 Yes
 No
 Maybe
23.How maximum customers behave when the cab drivers are late?
 Angry
 Normal
24.If customers left their bags/luggage’s unintentionally/ accidentally what would
the cab driver do?
 Call the customer and hand it to them
 Hand it to Ola & Uber office
 keep with them
25.How do the driver manage their petrol expenses?
 Ola & Uber reimburses
 Out of their own pocket
26.What long does the driver's work in a day?
 <8
 8-10
 >10
27.Do the cab driver's form any union?
 Yes
 No
 Maybe
28.Does the innovation takes place due to the growth of ola & uber?
 Yes
 No
 Maybe
29.Does their is any technological changes in country due the the growth of ola &
uber?
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T.Y.B.A.F
 Yes
 No
 Maybe
30.Does government provide any scheme for the ola & uber ?
 Yes
 No
 Maybe
31.Does the growth of ola & uber plays a significant role in investment &
technology for the country?
 Yes
 No
 Maybe
99

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Growth of Ola Uber

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A STUDY OF THE GROWTH OF OLA & UBER IN INDIA

DURING THE PERIOD “2019-2020”

 To see the upliftment of the driver.

Bhavish Aggarwal’s journey from almost beginning a tourism company to

The company's early hires included a nuclear physicist, a computational

In August 2014, Uber launched UberPOOL, a carpooling service, in the San

In August 2014, Uber launched Uber Eats, a food delivery service.

In February 2018, Uber combined its operations

Rent, powered by Getaround, was a peer-to-peer carsharing service available to some

In March 2019, Uber acquired Careem, a transportation network company based in

Uber autonomous vehicle Volvo XC90 in San Francisco

Advanced Technologies Group (Uber ATG) is a subsidiary of the company that is

In early 2015, the company hired approximately 50 people from

Fusion cars each equipped with 20 cameras, seven lasers, Global Positioning

On December 14, 2016, Uber began using self-driving Volvo XC90 SUVs in its

In November 2017, Uber announced a non-binding plan to buy up to 24,000 Volvo

In March 2018, the death of Elaine Herzberg by an Uber self-driving vehicle

Cancellation of research on autonomous trucks

HISTORY OF THE UBER LOGO

Design Elements of the Uber Logo

Popularity of the Uber Logo

Here is a look at the New Uber Logo released in Sept 2018

SWOT ANALYSIS OF OLA CABS :

weather conditions. This helps to manage the supply in an efficient manner

 Wider Market – In order to attract non-tech savvy customers, Ola has to

 Government Regulations – Government regulations about the taxi service

SWOT ANALYSIS OF UBER :

penetration and coming of age technology, Uber is expected to grow rapidly in

 Highly dependent on Internet: Uber is heavily dependent on internet

HOW OLA IS RIDING THE FUTURE OF MOBILITY IN INDIA

UBER’S INDIA UNIT BRINGS HOME 30% MORE IN

On an average, 5% of gross merchandise value for cab-hailing app companies goes as

UBER FORECASTS FIRST-EVER QUARTERLY

The company will consider abandoning delivery in other countries or acquiring

DECODING FM SITHARAMAN'S CLAIM: IS ONLY OLA,

Union Finance Minister Nirmala Sitharaman on Tuesday on Wednesday told reporters

According to Society of Indian Automobile Manufacturers (SIAM) data, in the last

OLA AND UBER ARE STILL NOT SAFE FOR WOMEN

In 2017, the Ministry of Women and Child Development made policy

‘Unregistered Uber Driver Rapes 26-year-old Woman‘, ‘Woman Allegedly Forced to

PANIC BUTTONS WON’T FIX OLA AND UBER’S

Vetting of drivers, panic buttons on phones, customer feedback—they’ve tried it all.

On June 01, a 26-year-old architect booked an early morning ride to Bengaluru airport

Although app-based taxi aggregators have improved woman commuters’ convenience

Dec 2014 An Uber driver in Delhi molests a woman returning from work at 9:30pm

 Background verification of all drivers, including e-verification using Aadhaar

 Emergency button in the app that alerts a safety response team

 A feedback mechanism for passengers to rate drivers based on their behaviour

 Emergency contact feature to share details of a ride with five of the

 Real-time ID checking feature where drivers are periodically asked to share

 Emergency button connects with the local police and Uber’s 24×7 incident

 Anonymous rating and feedback for a driver

Some also see the need for a stronger justice system.

ADVANTAGES OF OLA & UBER

Convenient and Cashless

Safer and More Flexible for Drivers

Disadvantages of Ola & Uber

drivers, these drivers might not be as motivated to reach high standards of

Low Fares Hurt Drivers

Negative Impact of Price Competition

LOCATING THE SOCIO ECONOMIC STATUS OF THE DRIVER

SOCIO ECONOMIC LOCATION OF DRIVER PARTNERS.

The mean age of the respondents came out to be 32