Operation strategy of taxi services (ola and uber) in India

1. TAXI
WARS
UBER VS OLA

2. OLA CABS
 Founded in Mumbai, December 2010
 100 % aggregated
 Cabs booked through app, website & call
 Aggregates autos
 Cash payment accepted everywhere/wallet option
 It acquired Taxi for Sure recently.
Funding raised - $ 700 million+
Investors – DST Global, Softbank, Falcon, Edge, Tiger global etc.
Total income
2013/14 2012/13
51.05 16.41
*Figures in crores (Rupees)
Ola
Bhavish Aggarwal
Co-fouder and CEO

3. UBER
 Founded in Mumbai, December 2010
 100 % aggregated
 Cabs booked only through app
 Payment - wallet option
Funding raised - $ 6 billion+
Investors – Lowercase Capital, Menlo, First round, Benchmark,
Google Ventures, Baidu etc.
Total income
2013/14 2012/13
2.26 N.A.
*Figures in crores (Rupees)
Uber
Amit Jain
President, India

4. CO-FOUNDER & CHIEF EXECUTIVE OFFICER
TRAVIS KALANICK
HEAD OF GLOBAL OPERATIONS
RYAN GRAVES
Uber Leadership Team
CHIEF TECHNOLOGY OFFICER
THUAN PHAM

5. Bhavish Aggarwal, Co-Founder and CEO Ankit Bhati, Co-Founder and CTO
Ola Leadership Team

6. Goals & Objectives
The goal is to bring
convenience, price
transparency &
standardization to
consumers booking car
rentals & cab services.
Uber’s goal is to
continually expand
globally and bring its
services to different
cities to allow riders
and drivers to
connect.

7. Market share
Company No. of vehicles
% Market Share wrt no.of
rides
OLA* 2,00,000 49
MERU 20,000 12
UBER 1,50,000 35
Others - 4

8. Availability Across India
In 22 cities across India
by June’15.
In more than 80 cities
across India.

9. HOW ON-DEMAND CABS WORK
Customer opens app and
sets pick up location.(App
can locate their location)
1
Select payment option
Cash Card
2
Select cab type and
then places the order
3
Cab picks up the customer
and the trip is tracked by GPS
4
At the end of the journey,
the fare is charged directly
to the digital wallet. In case
of cards, a customer enters
CVV and verification
password on the app.
Payment can also be in cash.
5
The aggregator transfers
money to the driver’s
linked bank account in 24-
28 hours.
6

10. MINI
SEDAN
PRIME
TAXI FOR SURE –
HATCHBACK
KAALI PEELI
OLA AUTOS
Car Categories
UBERGO
UBERX
UBERBLACK
UBERSUV

11. WORKING OF DRIVER’S APP

12. Drivers App
PHONE NUMBER LOGIN WAITING FOR
CUSTOMERS
NAVIGATION
1 2 3 4

13. Drivers App
NAVIGATION CLIENT LOCATED START TRIP STOP TRIP
5 6 7 8

14. Drivers App
BILL DETAILS NEXT RIDE OPTION CANCELLATION CANCELLATION
CONFIRMATION
9 10 11 12

15. WAR ROOM

16. WORKING OF
CUSTOMER’S APP

17. 1 2 3 4
OLA App

18. OLA – Taxi for sure merger
5 76

19. DESTINATION
Beep-Beep! Your taxi has arrived
8 9 10 11

20. Ola payment

21. UBER App
START
POINT -
HOME
Uber App

22. UBER App
DESTINATION -
FACTORY
Uber App

23. Strategic Partnership with Bharti Airtel
Uber payment

24. Uber cash payment

25. UBER OLA
PROVIDES PER HOUR FIXED RENT PROVIDES PER DAY RENT
A DRIVER HAS TO TAKE ATLEAST 1 RIDE
EVERY TWO HOURS
A DRIVER HAS TO TAKE ATLEAST 7
RIDES IN TWLEVE HOURS
NO RIDE IS TO BE REJECTED NO RIDE IS TO BE REJECTED.
No Fine For Rejection But Guaranteed
Scheme For those Hours Collapses
Rs. 250 Fined for each Ride Cancelled
by The Driver.
Pricing Strategy

26. TIME AFTER COMMISSION AND TAXES
Weekday Morning.
Monday-Friday
(6 AM -10 AM)
Rs.250 /Hr.
Weekday Evening.
Monday-Friday
(6 PM -10 PM)
Rs.250 /Hr.
Weekend Peak.
Saturday and Sunday
12PM- 9PM
Rs.250 /Hr.
OFF PEAK ALL OTHER TIMES Rs.150 /Hr.
Before - 19/08/2015

27. TIME AFTER COMMISSION AND TAXES
Weekday Morning.
Monday-Friday
(6 AM -10 AM) Rs.320 /Hr.
Weekday Evening.
Monday-Friday
(6 PM -10 PM)
Rs.250 /Hr.
Weekend Peak.
Saturday and Sunday
12PM- 9PM
Rs.250 /Hr.
OFF PEAK ALL OTHER TIMES Rs.150 /Hr.
After- 19/08/2015

28. OPERATING STRATEGY - A DELIGHT TO CUSTOMERS
SUV LUXURY SEDAN HATCHBACK
COMPONENT UBER SUV UBER BLACK UBER X UBER GO
BASE FARE 125 100 70 45
PER KM. 18 17 10 8
PER MIN. 2 2 1 1
MIN. FARE 150 150 100 60

29. LUXURY SEDAN HATCHBACK
COMPONENT
OLA
PRIME
OLA
SEDAN
OLA
MINI
BASE FARE 200 100 100
PER KM.
(After 1ST 4 Km.) 17 13 11
PER MIN. 1 1 1
MIN. FARE BASE FARE.
OPERATING STRATEGY - A DELIGHT TO CUSTOMERS

30. • Uber
• Per Day Earnings of a Car Owner : Rs.3480*/**
• Ola
• Per Day Earnings of a Car Owner : Rs.2800.*
• *16 Hrs Per day Signed In.()
• **Minimum Per day Guranteed Income.
• UBER DOESN’T PREBOOK CARS.
• OLA ACCEPTS PREBOOKING (Good for Night Time.)
Ola V/s Uber

31. BACK END OPERATION OF TAXI SERVICES

32. Formulation
Implementation
Monitoring
Control
Stages of Operation Strategy

33. Four Perspectives of Operations Strategy

34. Operation Strategy Matrix
34

35. Uber Initiatives
Uber – Fare Splitting UberCHOPPER

36. Uber Pool

37. How does Uber Pool work?

38. Ola Initiatives

39. Order Qualifier:
• Timely service
• Know the roads
• Well behaved drivers
Order Winner: Uber
• Less Costly
• Decent drivers (They even speak English! )
• Timely service
Order Qualifier:
• Quick service
• Distance flexibility
Order Winner: Uber
• Behaviour of drivers
• Ambience
• Cost (Bangalore Experience)
Order Qualifier:
• Cost
• Know the ways
Order Winner: Taxi For Sure
• Least expensive
Order Qualifier:
• Car condition
• Driving skills
Order Winner: Ola Cabs
• Schemes
• Services
• More choices
Consumer Perception

40. UBER OLA
India’s Taxi War Scenario

41. THANK YOU! 