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Strengths:1. Ola started out in December 2010, earlier than its competitors.

As a result it
has had an advantage in establishing its dominance in the Indian market.
Currently Ola has presence in 102 cities with a fleet strength of 450,000.
2. Olacabs is an aggregator of car rental service focusing on creating a technology platform that
seamlessly connects drivers with those who need a ride. The burden of owning, licensing,
insuring and maintaining a car rests with the driver, not Ola. Thus it has
limited exposure - as defined by total fixed and quasi-fixed costs like payroll.
3. Ola is backed by several heavyweight VC firms like DTS Global, Softbank,
Falcon Edge, GIC, Sequoia, Steadview, Matrix, Tiger Global. Chinese carhailing app Didi Chuxing has also invested in Ola Cabs taking its market
valuation to more than $ 2 billion. This has not only made the brand
financially strong but has enabled it to capture the market and attract more
drivers on to the platform by burning significant cash to provide ride-linked
incentives to drivers. Thus it has succeeded in warding off competition from
radio taxi service providers like Meru Cabs and deep pocketed competitors
like Uber.
4. Aggressive TV, online and print media marketing has helped in increasing its
customer base and due to network effect it is increasing.
5. Ola Cabs has a strong technology base which enables it to make extensive
use of data analytics and thus predict demand accurately on a daily basis and
thus prepare accordingly.
Weakness:1.

Ola Cabs business model allows it to exercise limited control over its drivers
who represents the face of the company. Thus any misbehavior on the part of
the drivers directly affect the companys brand image. This is apparent from
the scores of negative feedbacks ranging from drivers not showing up to
harassment faced by the women customers.

2.

While the demand for their services is huge, Ola Cabs has had to burn huge
amounts of cash to establish its market share. Monetization is very difficult
which is apparent from the loss figures of 754.87 crore posted by Ola Cabs
for the year 2014-15.

3.

Loyalty is elusive in this business model with customers always flocking to


the most attractive alternative. This is true for its driver partners as well, as
several of them cut off ties with Ola Cabs after it revised its incentive policy
which cut into the earnings of the drivers.

Opportunities:-

1. Indias online taxi services market is estimated to be around $9 billion,


pegged to grow at a CAGR of over 17% during 2015-2020. This shows huge
potential for expansion with Ola Cabs rightly deciding to register its presence
in Tier 2 and Tier 3 cities as well.
2. Increasing internet penetration and smartphone users has further helped the
cause of Ola Cabs. Rising disposable income has led to shifting of consumers
towards convenience, thus further increasing demand.
3. Acquisition of Taxi for Sure and other smaller companies by Ola Cabs has
established it as the market leader.

Threats:1. Ola Cabs faces fierce competition from its most significant rival Uber, the
global giant in this field, with presence in 66 countries and a market valuation
of more than $ 50 billion. Despite its late entry in India compared to Ola Cabs,
it has expanded aggressively, currently offering its services in 26 cities with a
fleet strength of 2,00,000
2. Ola Cabs also faces competition from multiple local players like Meru Cabs,
Easy Cabs,