Competitor Analysis_Snehil

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  • Introduction to the

    Company

    UpGrad Product Management Competitor Analysis Indian Cab Industry

    Student Name: Snehil

    Acting as a PM at Meru Cabs

  • Competitor Identification

    Background Analysis

    Business Model Analysis

    Strengths and Weaknesses

    Product Analysis and Performance

    Predict Future Initiatives

    2

    Contents

  • 3

    Competitor Identification

    ANI Technologies Pvt. Ltd., operating under the trade name Ola, will stand as the top

    competitor as they are the leading the charts with 70% market share. They have been

    operating in this space since 2010 and have seen tremendous growth since then.

    Ola started with app booking and call center booking, but later on followed the app

    only path.

    Direct Competitors (DC) Ola Cabs Uber

    Indirect Competitors (IDC) City Bus or Auto Metro Rail

  • 4

    Background Analysiscabs was founded by two alumni from IIT Bombay in 2010. They started from

    Mumbai to solve the citys transport woes. The company now provides services in 100

    cities. At present they claim to clock 200,000 bookings per day.

    cabs was founded by a Serial Entrepreneur, Neeraj Gupta in March, 2007 with 30

    taxis. Today, Meru provides services in 24 Indian cities (18 Metros) with a fleet of

    20,000 cabs and claims to have a consumer base of 5 Million.

  • 5

    Background Analysis Contd..a. Goals & Mission :

    With a mission to have a marketplace for all types of cabs and car rentals, Ola has

    come a long way from where they started. The vision behind Ola cabs is to provide

    hassle-free, reliable and technology-efficient car rental service to Indians. Today Ola is

    the biggest player in Indian cab industry and it aims to continue with the same. Ola has

    also entered the B2B segment with Ola corporate and Ola Operator app.

    Meru has a goal to deliver reliable taxi service by focusing on pain areas of the

    customers. It offers unshakeable reliability and character which is also a core value of

    the company. It also claims to provide best-in-class service & 90% customer

    satisfaction in 3rd party audits.

  • 6

    Background Analysis contd..b. Strategy :

    Manage bookings, customer calls, tracking &fair fares to woo the customer

    To keep drivers happy by offering good incentives (up to INR 1.5 Lakhs in early days)

    Only chose cabs with All India Permit to reap on both intra and inter-city benefits.

    Lure customer with attractive fares and amazing offers.

    Acquired TaxiForSure in March 2015, for $200 Million, to gain 80 % market share.

    Leveraged the smartphone revolution and reach more than 90% App bookings.

  • 7

    Background Analysis contd..

    Advantage of first entrant in the radio taxi space & solve customers pain point.

    Trust Factor built amongst users through quality service and trained drivers.

    Launched Meru Genie at the right time to cope up with competitive pricing.

    Completely revamped Mobile App to give users a totally new experience.

    Trying to make a mark as the best Airport Taxi.

    Owns 50% of the fleet and help partner drivers get loan and insurance.

    We are adding SUVs, sedans and hatchbacks as a separate service through the mobile app. The

    pricing is also competitive, in line with other services available in the market Meru Cabs CEO

  • 8

    Background Analysis contd..

    0

    500

    1000

    1500

    2000

    2500

    Nov-15 Apr-15 Jul-14 Oct-14 Apr-12 Dec-15

    Baillie Gifford DST Global Sequoia andSteadview Capital

    Softbank Capital Tiger GlobalManagement

    Vanguard

    $5.00

    $2,500.00

    $210.00$400.00$500.00

    $57.30

    Series G

    Series F

    Series E

    Series D

    Series C

    Series A

    In Millions

    $0.00

    $10.00

    $20.00

    $30.00

    $40.00

    $50.00

    Jun-16 Mar-15

    Brand Capital India Value Fund

    $25.00

    $50.00

    In Millions

    Ola is presently valued at $5 Billion

    c. Finances :

  • 9

    Background Analysis contd..d. Products :

    Apart from its cab categories and e-wallet, Ola also has Ola select privilege program &

    Ola Corporate. All this is made possible by its mobile applications.

    Meru brings instant and advance cab booking supported by its mobile App and website.

    It also offers various e-wallet payment options. Fare Exactometer is considered to be its

    USP.

  • 10

    Background Analysis contd..Brand/Parameters e. Market f. Employees

    Users who need to book inter-city or outstation cabs

    through their mobile application.

    The entire mobility space is our market

    - Bhavish Aggarwal

    5000

    Users in need of instant or book later cabs and also the

    users looking to pay a premium price for better service

    and reliability.

    Users who like transparent pricing and want to do away

    with surge prices.

    1000+

  • 11

    Business Model Analysis a. Revenue Models :

    Marketplace model

    X % commission from trip fare.

    Car Type, On-Boarding Fee, On-Cab Ads.

    Part-Inventory model to gain exclusivity.

    Buying cabs for leasing to the drivers

    Ola Money, Ola Corporate, Peak time

    charges

    In contrast to Ola, Meru began with

    complete inventory model & owned all of

    its fleet. Drivers were required to pay per

    day rentals (INR 1200-INR 1300).

    Driver strikes in 2012 has forced Meru to

    take the part-Inventory route too. Today

    50% of its fleet is owned by drivers. It also

    earns around 10% of revenue from On-Cab

    advertisements.

    Began With Moved to

  • 12

    Business Model Analysis contd..b. Operational Locations :

    c. Target Market :

    100 Indian Cities

    24 Indian Cities

    It believes that the entire mobility space is the target market.

    Anyone who needs a online, point to point or outstation transport

    according to their budget, Ola has a category for them.

    Meru targets the users who want to get a cab instantly and reliably.

    Women customers form a good target area for Meru due to well

    behaved drivers, clean AC cars and Trust Factor.

  • 13

    Business Model Analysis contd..

    Brand/Parameters d. Inventory e. User Segment

    Had no Inventory to begin with.

    IT related product functions.

    Recently bought cars form

    inventory.

    Anyone who wants to book an

    economical cab from smartphone.

    Youngsters, working class and elderly

    who need a point to point travel.

    Began with Inventory model

    Entire fleet owned makes up the

    inventory

    Devices fit in the vehicle.

    Users looking for instant-reliable cab.

    Users looking for airport cab.

    Users looking to pay a premium price

    for better service.

  • 14

    Strengths and Weaknesses AnalysisBrand/Parameters Strong Points Pain Points Information

    First mover as aggregator.

    Acquired Taxi For Sure.

    High awareness & user base.

    Multiple rounds of funding.

    Poor behaviour of drivers

    Surge Pricing

    Drivers refusing Ola Money

    App crashes and malfunction

    Ola has maintained a

    USP of being price

    efficient despite the

    surge pricing. Ola Auto

    is a useful offering.

    First radio taxi provider.

    Good awareness & presence.

    Transparent fare & no surge.

    Meru Genie is price efficient.

    Huge investment to buy cars

    Higher prices than competition

    Lesser funding received

    Incurs high training cost

    Meru has retained a

    good customer base

    with its Rely on Us

    image.

  • 15

    Product Analysis & PerformanceParameter/Platform ios Android Windows Phone

    App Downloads Undisclosed 10 Million Undisclosed

    App Rating 2.5 4.0 3.4

    App Reviews Many bugs Fairly Positive App Crashes Reported

    Technology Well Established and renowned operator. App is pretty famous in market.

    Functionality Allows to chose location, book & track cab, contact driver & pay online/cash

    Design Facility to compare fares across ride types is added, Ola select is also new.

    New Features Prime Play is available now, Weekend Getaway, New layout to display Prime rides

    User Experience (Android Perspective) : GPS works fairly well but there are issues with drivers cancelling

    the rides. However, the booking & cab selection works smooth. It almost never properly

    predicts the estimated time of arrival of cab to the user. Pricing is not transparent.

  • 16

    Product Analysis & PerformanceParameter/Platform ios Android Windows Phone

    App Downloads Undisclosed 1 Million Undisclosed

    App Rating Undisclosed 3.8 4.0

    App Reviews Bugs & Crashes Fair with some bugs Fairly Positive

    Technology App works smooth on major platforms. Booking is also possible through website.

    Functionality Allows instant or advance bookings through app & website. GPS tracking and e-wallets.

    Design Has a revamped design and UI. New portfolio for intra-city travel.

    New Features Introduced SUV to the fleet; Indias first CAB-wallet; Fare Exactometer

    User Experience (Android Perspective) : The App works fairly well for bookings, fare estimation and

    tracking. However, bugs like cab always unavailable have been reported. Wallet and Cash

    related issues have come up too. Exactometer calculations have been questioned by users.

  • 17