When traveling from point A to B, many on-demand transportation services strike your mind. Undoubtedly, one such taxi booking service is Ola. It is a known ride-hailing service in India and a tough competitor of Uber. If you are considering starting a taxi-hailing service, unveiling the Ola business model's success secret will help you make an intelligent footprint in a competitive market.
The company is also leading in
the electric two-wheeler segment, Ola
Electric. It sold around 35,000 units in May; the company measured its
highest-ever monthly sales this month; Ola has captured a market share of above
30%. At the same time, Ola Cabs is also helping the company to make significant
profits.
Looking at the company's success,
many are choosing to build an app similar to Ola. If you
are one among them, dive deep into an Ola business model to know how it works
and makes money. Keep reading the blog and find the success story of the
ride-hailing business giant here.
What is Ola? Success Timeline to Dive into!
Ola is a multinational
ride-sharing company. An Indian company is headquartered in Bangalore. Besides
providing ride-hailing services, It also operates in other verticals, including
cloud kitchens and financial services. Softbank is a prominent venture
capitalist and has large stakes in the company.
Ola's Success Story Timeline
Softbank has large stakes in Ola.
The company extended its service overseas in Australia and New Zealand in 2018.
In 2019, ride-hailing started its operations in the UK. Explore Ola's success
timeline to have a quick glimpse of everything.
In 2019, Kia and
Hyundai invested around $300m in India’s largest mobility
service provider. An Ola business model is two-sided; the ride-hailing platform
connects customers searching for transportation services with a driver via a
mobile app.
https://twitter.com/bhash/status/1107856614076416000
The company serves millions of
riders every day in 250+ cities. In 2022, the Ola Cabs app had over 23.6
thousand downloads in Australia. The company measured the highest downloads in 2019.
There are almost 125 million Ola registered users. The company offers services
in New Zealand, the UK, Australia, etc.
Ola Business Model: Check How the Ride-hailing Platform Works?
The digital revolution has
changed the behavior of all people. Now people no longer have to wait for a
taxi; they can book services with a few clicks on their smart devices. With Ola
and other taxi-hailing services building their presence in the market, there is
an excellent shift in customers' mindsets and behavior.
Ola is an on-demand taxi-hailing
service provider that has captured riders' attention and interest and changed
their preference over other public transportation.
The Ola business model
incorporates a range of services beginning with transportation, like renting
cabs to ride within the city, renting taxis for outstation round trips, and
more.
Ola has sacked around 130 to
200 employees in a fresh round of layoffs. The layoffs are across the company's
electric vehicle, ride-hailing, and fintech businesses. The company has a net
profit of 2 to 3% in Q3; Ola has experienced a jump in its profit. Read the Ola
business model to know how it benefits riders, car owners, and many more.
Ola's Key Partners
Ola's business model is not
limited to riders. The company's aggregator model has common partners such as
car owners, drivers, manufacturers, and many more.
Ola's Key Activities
The main activities of the
company are to grow the business and acquire more customers. Ride-hailing
company activities include:
·
Managing regular operations by assuring safe rides.
·
Management of technical platforms by checking the app.
·
Marketing and sales to improve brand recognition both online and
offline.
·
Analysis of sales, daily rides, returns, etc.
Key Resources
·
Manage rides and business.
·
Data Analytics
·
Team of sales, drivers, marketing, etc
·
Ola's brand name is Equity.
·
Equity holders and fundraisers.
Value Proposition
For Riders
·
Customers who are looking for on-demand rides with few clicks.
·
Those people who are looking for flexible and inexpensive options.
·
Riders can get access to amenities like WiFi, entertainment, and
other tools.
·
Great customer support
·
No wait time
·
Multiple stop structure is appreciating
·
Multiple payment options, including cashless.
For Drivers
·
Before acquisitions, drivers are asked to pass all necessary
process
·
Flexible riding hours
·
Earning from rides
·
Lease cars
·
Providing 24*7 services
·
Book services on behalf
Customer Relationship
The prolonged customer
relationship is hard to drive for successful business operations in the long
term and also in the competitive and changing industry. However, the Ola
business model provides many channels to improve the experience and drive more
customers.
Mechanized App
Ola provides all-time customer
support and ride-hailing booking services through the app.
Discounts and Offers
Riders are provided with lots of
benefits like discounts, offers, and more. Users also get some credit points as
referrals.
Other Services
The ride-hailing services provide
customers with a lot of benefits, such as multiple stops, a panic button for
emergencies, etc.
Customer Segment
Ola Users
·
Users can book rides to travel within the city.
·
Customers who don't like driving alone can book an Ola taxi to
travel from point A to B.
Outspot Travel
Riders can book rides to travel
outside of the city. They can go for a group vacation or a solo trip.
Rent a Car
Users can choose to drive on
their own. They can book a taxi for 1 or 12 hours at their convenience.
Ola for Corporates
Managers or employees can book
Ola for corporate to enjoy benefits like low cost, insurance, expenses, and
more.
Ola Drivers
Drivers who have their own car,
auto-rickshaw, bike, etc can drive and provide taxi services to customers.
Ola Revenue Model: How Does Ride-hailing Company Make Money?
You might have a glimpse of the
Ola business model; now, let's explore the Ola revenue model to know how the
ride-hailing service provider makes money. Explore Ola's revenue streams to
know how it makes money.
Trip
Ola charges a certain percentage
as a commission for each trip being carried out through the platform. Ola
charges trip fares from riders through various factors based on car type,
location, etc. The trip commission charges are based on:
·
Base fare
·
Distance per KM
·
Ride time fare
·
Wait time fare
·
Peak pricing
·
Advance booking fees
·
Access fees
·
Convenience fee
·
Airport fees
·
Tool and parking fees
·
Cancellation fees
·
Service Tax
Ola Money Wallet is credited to
the driver's account once the travel fare is charged for each ride. If the
amount is paid in cash, the amount is included and deducted from the driver's
payment for each trip he has conducted.
The company also reduces the
service tax. It charges a commission percentage; however, it pays the amount to
the driver's bank account within two days.
Ola's estimated commission
charges are as follows:
Introductory promotions: Around
7.5% commission for new drivers for a short time.
In India: The
company charges a 20% commission.
In the UK: The
company charges 15% for Private Hire vehicles and 10% for metered taxis.
In New Zealand: Ola
charges an 18% commission
In Australia: Ola
charges 15 to 22% commission.
Ola Money
The company has introduced its
wallet just like FreeCharge and Paytm wallets. With Ola virtual wallet service,
payments can easily be made at multiple vendor touchpoints. The waller
incorporates its cab-hailing services, contributing to Ola's revenue.
https://twitter.com/Olacabs/status/1085865113326968833?
Advertisement and In-cab Promotions Commissions
Ola charges a commission for
promotions. Commuters are provided access to pamphlets, brochures, and other
advertising tools. Besides, live-streaming ads are played to promote various
companies products and services.
Cab Leasing Program
The ride-hailing company has
started a cab leasing program for driving partners. Ola purchases cars and
leases them to drivers to improve drivers' loyalty towards Ola. A daily amount
of 700 to 1150 is charged to drivers for running vehicles. It can be an
aggregate of trip-based and fixed commissions.
Ola Credit Card
"Ola Money SBI card"
has been introduced by the company in association with Visa and SBI. The credit
card provides lots of benefits and rewards to users.
https://twitter.com/bhash/status/1128581029319434241
Corporate Accounts
Ola provides lots of meetings
with the head of multiple organizations where they promote the company and
convince corporate employees and managers to use cabs for their business
travels. Decreased fees are charges from the corporates with the increase in
demand. Ola earns high sales volume with B2B tie-ups.
Delivery Service
With the acquisition of
FoodPanda, Ola successfully entered into a delivery segment. The company is
expected to take over Swiggy and Uber Eats, grow its revenue and build a strong
position in the delivery market.
Ola Prime Play
The company has partnered with
Sony Liv, Microsoft, Audio Compass, Apple Music, and more to provide commuters
with in-cab personalized entertainment. The company makes money on some rides
providing entertainment services and charges 20 ₹ as a convenience fee.
https://twitter.com/DhamijaSid/status/815067329813848064?
Ola Electric Helps Company to Drive Great Revenue!
Ola Cabs introduced Ola Electric,
helping the company to create batteries under BaaS (Battery-as-a-service) and
electric vehicles model for shared mobility. The company's CEO plans to recruit
almost 2,000 people to deliver the project. Its demand for batteries and
electric cars in upcoming years makes Ola Electric one of the largest future
revenue streams for the company.
Ending Note
Now you might have insight into
the Ola business model, revenue streams, and more. The taxi-based model helps
the company to serve improved services to its platform users. Ola is the
ultimate solution for many who are looking to reach their desired destination
without any delays. The company has really redefined the way of traveling for
billions of people.
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