Management Development Institute - Gurgaon

Operations Management
Case 05
How Ola and Uber are making other taxi
companies irrelevant in India
OM
Group ID Name

Case Presentation 1 19P005 Agrim Garg

2 19P010 Anmol Singh

3 19P022 Rohankumar Jadhav

4 19P025 Krittika

5 19P035 Rajkumar Jai Singh

6 19P054 Siddharth Bagdi

Presentation Date: 16th October, 2019

Post Graduate Programme in Management

(PGPM: 2019-21 Batch)
Term: II (Sep-Dec 2019)
How On-Demand Cab Works

Feedback
Customer’s App Interface: Uber

Driver’s App Interface: Uber

 Differences in the model
Abroad India
• No cheaper options • Cheaper Options for Hatchback
• Anyone can become a partner • Only drivers with commercial
• No cash payments license can enlist
• Drivers have the freedom to work • Cash payments are accepted
part-time • Drivers mostly work full-time
• No hybrid model
• Meru operates on hybrid model
i.e. 70% of cars are owned by
aggregators
 Perception: Ola v/s Uber Order Winners : Ola
• Schemes
• Services
• More choices
• Accessibility

Order Qualifiers
• Timely service
• Know the roads
• Well behaved drivers
• Quick service
• Distance flexibility
• Car condition
• Driving skills
Order Winners :
Uber
• Timely service
Ola Uber
• Ambience
150 cities 40 cities • Behavior of drivers
550,000 drivers 350,000 drivers as of 2016 • Seamless app
experience
Founded 2010 Entered India in 2013
 Aggregator Business Model
• Aggregator Business Model is a
network model where the firm collects
the information about a particular
good/service providers, make the
providers their partners, and sell their
services under its own brand.
• Since the aggregator is a brand, it has
to provide services which have uniform
quality and price. This is done by
signing up a contract with the partners.
• The good/service providers never
become aggregator’s employees and
continue to be the owners of the
good/service provided. Aggregator just
helps them in marketing in a unique
win-win way.
 Customers

Brand

Contract
Characteristics of
Quality
aggregator business
model Competition

Pricing

Partnership Model

Aggregator Revenue Model

 GIG Economy
In a gig economy, temporary, flexible jobs are commonplace and companies tend
toward hiring independent contractors and freelancers instead of full-time employees. 
Advantages of GIG Economy
Benefit workers, businesses, and consumers by making work more adaptable to the
needs of the moment and demand for flexible lifestyles.
https://www.youtube.com/watch?v=oQfTJy0sRVs&feature=youtu.be
 Disadvantages of GIG Economy
• It might lead to erosion of traditional economic relationships
between workers, businesses, and clients.
• Won’t get company benefits
Operational Strategy Parameters
How Does Ride Share Work?

Reques Hop
Ride
t out
 Risk Management Techniques
1. Real Time Trip Tracking: To ensure that the driver does not take an unknown or a wrong route, this feature
enables the customers to track the live location of the car

2. Precision Tracking: You can share your data with 5 of yours close friends/family members, if you feel unsafe
while boarding the cab

3. Review and Rating: Customers can provide feedback and look at past feedbacks of the driver while booking a
cab

4. Panic Button: A physical button present in the cabs which can be pressed if any mis happenings occur & in
such a situation, it sends a signal to alert passerby’s

5. SOS: A feature present on the apps which alerts the police if you feel there is something shady going on while
you are present in the cab

6. OTP: Ola provides the customer with an OTP to begin the ride. This feature prevents the drivers from starting
the journey early without the riders. It also prevents any other customer from boarding the cab

7. Pre booking: For the riders on a tight schedule, this feature makes sure that they get a cab on time whenever
required
Recent Trends in market
• Uber partners with DocsApp to provide free doctor
consultations to driver-partners - Oct 2019
• Uber insures riders in India at no extra cost for a
secure travel - Sep 2019
• UberBOAT was launched in Mumbai for short trips
from the Gateway of India jetty to Alibaug and
other islands around – Jan 2019
• Uber launched a pared-down version of its
app, Uber Lite - June 2018
• Uber India launches wheelchair-accessible vehicles
- uberACCESS and uberASSIST for differently abled
passengers – Oct 17
• Hyundai and Kia invest in Ola to develop unique fleet and mobility
solutions in India - Mar 2019
• Ola partners with SBI to launch Visa powered credit card in India -
May 2019
• Ola acquires Pikup.ai (AI based company) - Aug 2019
• Ola Forms Partnership with State Bank of India 7 Visa - May 2019
• Ola Electric Mobility Secures USD56.32 Million in Venture Funding -
Mar 2019
• Ola to Invest USD100 Million in Vogo Automotive – Dec 2018
• Ola acquires Birds Eye Systems (Ridlr) – Apr 2018
• Ola acquires Foodpanda Indian Business from Delivery Hero - Jan
2018
 Initiatives
Uber OLA

Uber – Fare
Splitting

UberCHOPPE