Ola Cabs: Dominating India and Challenging Uber at Global Level

Over 25 million Customers

Cab aggregation platform provider

350,000+ vehicles

(Counting autos, Government registered taxis, yellow

Cabs, etc.)

Over 1 million booking

Requests/day

Present in 102 Indian cities

Higher population - 65% below the age of 35

Mobile Internet users ~67% mobile penetration

Population:

1.26 billion

Cost sensitive public -> prefer no-frills lowest fare cabs

Preference for 3-wheelers for short journeys -> cheaper than

cabs

In heavy traffic -> two wheelers preferred (shorter journey

time)

Growth of working women -> higher safety concerns

Customer Self Owned Car Cabs

Cost of Car 4.85 lacs 0

Loan, Insurance & Taxes (3 yr period)

1.26 lacs 0

Maintenance Cost (3 yr period)

4500 INR 0

Miscellaneous Cost ( 50,000 INR 0

Registration (3 yr period)

72,000 INR 0

Cost of running (3 yr period)

1.21 Lac 4.32 Lac

Resale value (after 3 years)

2.35 lac 0

Total Cost incurred 6.18 lac 5.2 lac

• With Ola micro and mini, it is cheaper for a customer to take a cab

than own a car

Multiple Price and Service Offerings

Convenience Payment

• One touch

• Instant Booking

• Pre-Booking

Base Fare 80@Rs10/km



Standard meter fare


Carpool services Corporate Service

Base Fare 40@Rs6/km

Ola Shuttle

Micro Mini Sedan Pink 3-wheelerPrime

Higher vehicle

utilization

Worry free cab

maintenance

Extra income Flexible work hours

Driver Training

Pricing and Payments

• Sets pricing structure for rides

• Surge pricing

• Customers pay with cash,

credit/debit cards, Ola

digital wallet (Ola money)

Revenue Generation

• Ola earns between 10% -

15% for each ride

depending on the city

Expenses

• Invest in R&D

• Employee salaries

• Maintaining infrastructure

in 102 cities

• Invest in own fleet

Cabs

› Taxi aggregators: Uber, Easy Taxi

› Fleet Operators: Meru

2 wheelers Taxis – Baxi and M-Taxi

Three wheeler aggregator – Jugnoo

In India, private cars can’t be used as taxis

So yes, business model is same

But OLA has a higher market share

Why?

• First mover advantage• Highest funded start up• Wider reach• More taxis

Parameter OLA UBER

No. of Cars 350,000+ 250,000

No of Rides per day 7,50,000 2,00,000

Funding $900 million (VCs) $1 billion (Uber Technologies)

Reach 102 cities 26 cities

Cash Payment Yes No

Advance Booking Yes No

Cancellation Fee No Yes

Surge Pricing Yes Yes

International Presence Launching soon (Tie-ups with Didi in China and Lyft in US)

Yes

3-wheeler (auto rickshaws)

Yes No (Stopped in Nov 2015)

Payment options Ola money (Can’t be used for other payments)

payTM (people use it regularly)

OLA

Ride Later option: Pre-

Booking a cab

UBER

No Pre-booking

available

OLA

24/7 Call center available for Safety of the Passengers

Helps to book cabs via a phone call

Emergency services such as an accident can be reported

UBER

No call center available to reach out to immediately

Ola has more

visibility (OLA logo

on cabs)

Uber has negligible

visibility

OLA

Smaller hatchbacks

for their attractive

price to target

middle class

customer segment

UBER

No specific business

model to use more

smaller hatchbacks.

Low cost Uber: uberX is

still more expensive.

OLA

Started buying its

fleet of cars

UBER

Business model only

as a taxi aggregator

Ola Share

Option to share rides with only trusted contacts or friends

50% cheaper than regular cabs

Tie up with corporates for employee pick up and

drop services

Ola Auto

• Cheaper

• More convenient for shorter

journeys

Buying their fleet of cars -> dedicated drivers

Created network of manufacturers and financial institutions for

drivers to buy cars

Set up a fund of USD 15 million to enable drivers to buy their own

cars

Car insurance

Extra commission for first 10 rides for new drivers

Incentives for best rated drivers such as supporting child education

Collaborate with Restaurant Discovery Mobile

Apps

• Provide a cab booking option to a Zomato app user to go to his favorite restaurant

BOOK A CAB

Delhi

B1-11, Connaught Place, Delhi - 1

Market Potential

• 15 million Zomato app users• Approx. 5 million journeys to restaurants on Zomato

platform• Average journey cost to a restaurant costs USD 1.5

Potential new revenue for Ola

• USD 2.56 million

Collaborate with Event and Movie Ticket booking

Mobile Apps

• Provide a cab booking option to a BookMyShow app user to attend his favorite movie

Delhi

B1-11, Connaught Place, Delhi -1

Reach your show in time! Book a cab

Market Potential

• BookMyShow sells 100 million tickets annually• Approx. 50 million journeys• Average journey cost to a multiplex/sports

arena/theatre costs USD 1.5


• USD 38.4 million annually

Collaborate with online marketplace Mobile Apps -Quikr

• Provide a cab booking option to a Quikr app user to meet a potential seller

Market Potential

• USD 477 million – size of India’s classifieds market• 1.5 million – monthly transactions on Quikr• USD 1.5 – average journey cost to a potential seller



Delhi

B1-11, Connaught Place, Delhi - 1

Meet your seller ! Book a cab

Collaborate with Advertising Agencies

to display in-vehicle Ads and Ad

stickers

Provide in depth analytics based on –• location where ad displayed• approximate eyeballs attracted• duration of travel in peak hours

In vehicle digital ads

Sticker adsAnalytics

In depth analytics for advertisers

Distance travelled during Ad display

90,000 eyeballs

attracted today

7am 8am 9am

Analytics

In depth analytics for advertisers

Distance travelled during Ad display

90,000 eyeballs

attracted today

7am 8am 9am

Market Potential

• Outdoor advertising in USD 15 billion industry in India



Introduce 2 wheeler taxis

• Convenient mode of transport

on crowded roads

• Shorter journey times

Market Potential

• 70% vehicles on India roads are 2 wheelers• Average daily journey 15km per 2 wheeler



Introduce Cargo delivery services

• Higher vehicle utilization• Incentive for drivers

Market Potential

• USD 6 billion – e retail market size in India• USD 0.3 billion – e retail logistics market size in India

(increasing at 48% YOY)• Last mile logistics constitutes 53% of e retail logistics

cost• 50% of last mile logistics deliveries provided by 3rd

Party Logistics companies


• USD 82 million

Introduce truck aggregation platform for inter-city logistics

• Higher visibility in supply chain• Higher utilization rate for long haul freight

carriers and trucks

.

..

Market Potential

• USD 90 billion – size of truck logistics market in India


• USD 74 million

Specialized vehicles enabling travel for the

physically challenged

• Inaccessible public transport systems• No dedicated pathways

Market Potential

• 11 million – number of physically challenged residing in markets in which OLA operates

• USD 1.5 – average journey cost• 21 million – journeys made by physically challenged daily


• USD 33 million

Introduce emergency Ambulance services

• Ambulances with advanced life-support facilities such as defibrillators, ventilators and drugs for use in critical or trauma-related cases

Market Potential

• Indian cities have 1 ambulance per 1,50,000 citizens• WHO suggests it to be at 1 ambulance per 1,00,000 citizens• USD 18 - Average revenue per trip

Lightweight App for tier 2 cities which can

work on low internet connectivity

• 90 Tier 2 cities and semi urban areas

face internet connectivity issue

- Tier 2 city

-Metropolitan city

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Restaurant delivery using 2 wheeler taxis

• Tie-ups with restaurants to deliver food

• For higher profitability, 2 wheelers are best suited

mode

• Average food orders were USD 4.6

• OLA charged a commission of 10% from restaurants

• OLA incurred cost of USD 0.76 per delivery

• Unprofitable

Previously was done using 4 wheeler taxis

OLA Cafe

Market Potential

• Food delivery is a $2 billion industry in India (growing at 30% YOY)

• $0.8 billion potential in cities where OLA operates in • Average order size is USD 6.15

OLA Store

Grocery delivery using 2 wheeler taxis

• To give higher profitability for each

delivery, 2 wheelers are best suited

mode

• Competitors like Grofers, Peppertap use

2 wheelers for delivery which gives

higher profitability as operating cost are

low

Previously was done using 4 wheeler taxis

• GPS tracker fitted on each cab

• To give visibility about cab location incase a passenger’s smartphone shuts off

GPS tracker

Low cost -> more users

More users -> more taxis

More taxis -> low pickup

times

Incentivised drivers ->

more drivers

Reliable pickups -> more users

Taxy App- Compare Cabs Nearby› Giving options to customers to choose among

various cabs

USD 337 million

Thank You!