App based taxi Service: Ola Cabs
-
Upload
kdhingra11 -
Category
Business
-
view
1.064 -
download
0
Transcript of App based taxi Service: Ola Cabs
Kamal Dhingra 1304-008
Online Taxi Aggregator:
OLA cabs
Macro Factor
Country India
1 Population 1.27 billion (Second most populous country)
2 GDP growth rate 5.8% for last 2 decades, expected to be 7% in 2015-16
3 Transport sector Caters to 1.1 billion and contribute 5.5 % to national GDP
4 Registered taxis 2.3 million
National capital Delhi
1 Population 16.78 million one of the most densely populated city in the world
2 Population change 21.20 % increase from 2001
3 Area 1483 Sq. KM
4 Registered taxis 2.3 million
5 Transportation hot spot International airport: 1, domestic airport: 1, major Railway stations: 5 , Inter-state bus
terminal: 3, Number of tourist spot : Multiple
6 Drivers for growth Evolvement of NCR region, Growing number of call centre, BPO, IT, ITES, Manufacturing
industries
8 Public transport option Buses, Metro, Auto Rickshaw, Taxis, Cycle Rickshaw
9 Roads in Delhi 33198 lane KM
10 No. of registered cars 2.63 million (Cabs: 53739)
Common problem:
Insufficient public transport system,
Parking space crunch, Reservation,
Price, Turn around time
Population to cab
ratio : 310
Industry Analysis
Taxi Market $9 Billion
Organized Market
$0.5 Billion
Owners
$1.5 to 2 million
Easy cabs Meru
Affliators
$1 million
Savaari Taxi Guide.in
Aggregators
$2.5 million
OLA Uber
Unorganized Market
$ 8.5 Billion
Growth YoY Taxi industry : 15-20% Aggregators: 30-40%
Drivers of growth • Price
competitiveness • Customer
convenience • Entry of multiple
player • Investment
backup
Introduction S.N. Parameters
1 Name OLA cabs (aggregator)
2 Founders Ankit Bhati, Bhavish Agarwal
3 How it started Bhavish had a bad personal experience with a cab which led him to realize
potential in the industry.
4 Date of Incorporation December 3, 2010
5 Business model OLA partners with Taxi, auto owners, provides modern technology and
processes for booking, dispatch etc. without holding any inventory
6 Revenue Model Runs on a pay-for-performance model. Charges a commission in whatever
sales they make.
7 Service Provided Hassle-free, reliable and technology-efficient: Car rental, Auto rental, Ola
Café
8 No. of Taxis Approximately 150000
9 Technology Website, Mobile Application, Analytics, Servers etc.
10 Operational in 100 cities, Plans to expand in 200 cities by the end of 2015
11 Financial evaluation $ 2.5 to 4.5 billion (October 2014)
Introduction
Ola cabs Technology GPS, Smartphone apps,
Heat map, servers
Suppliers
Taxi drivers
Customers Upper middle class, Business
class, Tech savvy
One tap to ride
Reliable pickup
Ride feedback
Cashless
Flexibility to drive
Time advantage
Higher income
Various benefits
Val
ue
pro
po
siti
on
Passengers
Drivers
Configuration of Service
App based Taxi
service
Information:
Consultation:
Order taking
Hospitality:
Safekeeping:
Exceptions
Billing:
Payment:
Website, Blogs, Mobile App, text messages
Customized offer using Analytics, History of travel
Cab booking through online, app, call centre
Driver’s behavior
Safety button on app, safekeeping of belongings
Clear rates for different category of car
Ola money, mobile wallet, Credit, debit card, cash,
Helpline, blogs, social media help for exception handling
Ps
Product
Price
Place
Cost structure
Products: Taxi services, Auto Services OLA Café
Challenges: Female passengers security, Differentiation
Solution: Female only cab, Panic button, Electric car
Solution: Competitive pricing, consolidation, economies of scale
Challenges: Price war between different players
Place: Mobile App, call Centre, web,
Challenges: Different Interfaces, Technology dependency
Solution: Investment in technology
Price
Ps
Promotion
Process
Promotions: Promo codes by referral, Various discounts, Blogs, Rating optimization in app stores, digital media promotions, word of mouth
Challenges: Customer response against existing promotions
Solution: Analytical approach
Process: App Based booking, Reporting time, Payment Refund
Challenges: Technical Glitches, People non-compliance
Solution: Training, Investment in technology
Ps
People
Physical. E.
People: Taxi drivers, Call center staff
Challenges: Security, Inappropriate behavior,
Solution: Stringent Background check, audits, Training
Physical Evidence/ environment: Condition of the car, Inside the taxi environment
Challenges: unhygienic condition, Bad condition of the car
Solution: Audits, Trainings, incentives
SWOT
• Rising competition
• Uber has deep pocket
• Getting overcrowded
• Absence of clear government regulations
• Huge unorganized market
• Increasing internet penetration & smart phone users
• Rising disposable income
• Shifting of consumers towards convenience
• Acquisition of smaller players
• Misbehavior of the drivers affects the brand image
• Huge demand leads to cash burning
• Loyalty of the drivers
• First mover advantage
• Acquisition of Taxi For Sure
• Huge supply side
• Huge customer base & network effect
• Rapid expansion and online application
• Strong backup by VC investments
Strength Weakness
Threat Opportunity
Technology
Ola Cabs
• Heat Mapping technologies to assess demands • God View- Real time aerial view of the movement of the car • Data Analytics : how many times app is opened, probability of predicting popular
destinations, analyzing demand prediction accuracy to update the algorithm • Dynamic price algorithm • Web servers • GPS technology • Various Softwares
Funding
April 2012: $5
M
November 2013: $20 M
October 2014:
$210 M
March 2015: $120
M July 2014: $41.5 M
April 2015:
$400 M
July, 2015:
$500 M
Tiger global Management
Matrix Partners, Tiger Global
Existing Investors Tiger global, matrix,
sequdia Capital
DST global, GIC, Softbank, Tiger Global
Existing Investors
Ownership OLA acquired TaxiFor Sure for $200 m
Expands cab aggregation services in about 200 smaller towns and cities
Experimenting with logistics services and has introduced delivery of meals from restaurants
Rivals
Direct
• App Based taxi services:
• Radio Taxi services
• Unorganized taxi services
• Car lease services
Indirect
• Public transport
• Self owned vehicle by consumer
• Car-pooling
Unorthodox
• Traffic on the road
• Technology
• Driverless, Computer assisted car
• Advancement of communication technology
Raises Alarm for:
Unorganized Taxi services
Unorganized Auto services
Automobile manufacturer
Comparative Analysis S. No. Parameter Ola cab Uber cab
1 Valuation $ 3.5 billion $ 50 billion
2 History 2010 2007
3 Presence 100+ cities in India, No plan to go overseas
300+ cities and 60 countries, 11 cities in India
4 Investors Softbank, tiger global Google, Goldman sachs
5 Supply 1.5 lakh 50K
6 Price Min. 100 to 200, Rs. 8 to 20 Km Taxi for sure is being pitched for lower prices
Min Rs. 60 to 125, 7/ km to 12/ km
7 Promotion App based, word of mouth, internet
App based, word of mouth, internet
8 Mode of booking 95 to 99% through app App only
9 No. of rides/ day Approx. 6 lakhs 2.5 lakhs
10. Acquisition Taxi for sure $200 million
Meru (being discussed)
Quality of Service Drivers and Customers both share the rating
Customers Drivers
S. No. Challenges Ownership Solution
1 Booking: Difficulty in booking, Last minute cancellation
Ola technical, supplier Loyalty, incentives
2 Availability Ola analytics, suppliers Investment on Technology
3 Moments of truth Supplier, customer Training, educating the customer
4 Post encounter Ola, customer, suppliers Smooth transaction, fair feedback
Challenges S. N. Challenges Solution/ proposed solution
1 Technology (Location tracking) More investment in technology
2 Data usage of drivers, Battery life of handset
Technology, incentives,
3 Ride later: Process Training, loyalty, incentives
4 Background checking of drivers, non-regulated drivers
Strict verification processes, Zero tolerance
5 Data privacy of customers: history of travel, other personal information
Strengthening of personal data security
6 Tough Competition Economy of scale, Diversification, consolidation
7 Pressure from investors Creation of customer base, loyalty programs
8 Law-compliance: using mobile while driving
Training, Technology
9 Fuel compliance Offering heavy discount to registered car owners to go for CNG, collaborating with car manufacturer, banks
Way forward
Training, Incentive, offers and facilities to drivers
Data security
Car leasing, Bus aggregations
New services Ola Cafe
Delivery of e-commerce goods
Venture into e-commerce arena
Supply and cost are two very big restraints hence Consolidation have started with merger of Ola and TFS.
CRM programs
Corporate segments
Thank you