Ruman 2.pdf

MAHARASHTRA COLLEGE Certificate This is to certify that Mr. Shaikh Mohammed Ruman Mohd Jaan has worked and

duly completed his project work for the degree of Bachelor of Management Studies

under

the faculty of Maharashtra College Of Arts, Science And Commerce in the

subject of Marketing and his project is entitled “Comparative Study Of Ola And

Uber” under my supervision. I further certify that the entire work has been done by the learner under my guidance and that no part of it has been submitted previously for any degree or diploma of any university.

It is his own work and facts reported by his personal findings and investigations.

Name and Signature of Guiding Teacher

Date of submission: ___ / ___ / ______

Internal Evaluator

External Evaluator

________________

________________

PROJECT REPORT ON

“COMPARATIVE STUDY OF OLA AND UBER”

Submitted by Shaikh Mohammed Ruman Mohd Jaan TY BMS (SEMISTER – VI)

Under the guidance of

PROF. ARAB AZIZ

Submitted to

UNIVERSITY OF MUMBAI

Academic Year 2018-19

MAHARASHTRA COLLEGE Of Arts, SCIENCE, & Commerce 246-A, Jahangir Boman Behram Marg, Mumbai Central, Mumbai – 400 008.

Declaration: I the undersigned Mr. Shaikh Mohammed Ruman hereby, declare that the work embodied in this project work titled “Comparative Study

Of Ola And Uber”, forms my own contribution to the research work carried out under the guidance of Dr. ABDUL RASHID Sir is a result of

my own research work and has not been previously submitted to any other University for any other Degree/Diploma to this or any other

University. Wherever has been made to previous works of others, it has been clearly indicated as such and included in the bibliography. I, hereby further declare that all information of this document has been

obtained and presented in accordance with academic rules and ethical conduct.

Name and Signature of the

learner

Shaikh Mohammed Ruman

Certified by:Name and signature of the Guiding Teacher.:-

ACKNOWLEDGEMENT I consider myself very fortune to get the opportunity to conduct the training

approval and project assignment by Comparative Study of Ola And Uber. I got opportunity to get a practical exposer into actual environment and it provides me the golden opportunity to make my theoretical concept of Recruitment and

selection process in a more clear way.

I have gone through various sites, Research Books, Internet and Newspapers to get the accurate information for analysis and tried to find the best conclusion.

Shaikh Mohammed Ruman

TY B.M.S Roll No-929

Table of Content: Sr. no

Chapter Topic

Page no

No.

.

1. 2.

1.

Executive summary

1

Introduction

2 -43

1.1 Entry of cab Aggregators o Features of Cab Aggregators o Speed Bumpers in this Model 1.2 The Ola Story

1.3 The Uber Story 1.4 Comparison of the Giants o Services offered – Ola o Services offered – Uber 1.5 Marketing Strategies of Ola o Marketing mix of Ola o SWOT Analysis o Competitive Advantage o Distribution Analysis 1.6 Marketing Strategies of Uber o Marketing mix of Uber o SWOT Analysis o Competitive Advantage o Distribution Analysis 1.7 Marketing Campaign o Ola o Uber 1.8 Challenges faced by Cab Aggregators

3.

2.

Research Methodology

44-47

4.

3.

Review of literature

48-53

5.

4.

Data collection & Interpretation

54-75

o Hypothesis Testing 6. 7.

5.

Conclusions

76

References

77-78

o Bibliography o Webliography 8.

Appendix

79-83

Executive summary This project is to understand a comparative study of marketing strategies, funding’s,

business expansion strategies, and most importantly the consumer perception towards

these new cab aggregators who are overcoming our traditional travelling ways.

How Ola/Uber were invented and the basic reason or problem which lead to start-up of these companies, how they entered the markets, what services they offered, their unique selling perspective, no inventory business model, their marketing strategies

including marketing mix and swot analysis of both companies is stated. How they

expand through promotions, advertisings, free rides, discounts and offers & referral marketing and with huge investment and funds they captured the market is shown in introduction chapter in this project.

The method followed to assemble the data, type of study done, data collection

techniques, objectives of the study, assumptions & hypothesis is explained in research methodology

Review of literature is explained in brief with authors references all studies and

research projects were referred for collecting effective data for this research project Consumer survey and partner/driver survey is conducted and all the data is interpreted

and conclusions are given unbiased and primary so that conclusions are not manipulated and the research gets proper conclusions Chi-square test is applied to test the hypothesis, tables are shown and explained and a conclusion is given to the final project.

1

1. Introduction With rapid urbanization and migration of people from rural areas to cities, the

geographical area coverage of Indian cities is expanding. A large number of job opportunities, a growing need for education and flourishing of trade and commerce has increased the mobility of people. There is tremendous growth in the transportation

industry in India. Hence the concept of organized car rental services was introduced in

2004 when Meru cabs were launched, they gave cab booking services via call, website and google maps. Since then, a multiple other cab aggregator has emerged

offering various services but only a few survived the competitive environment. Ola

and Uber are amongst one of those who survived and is changing the way how a common man commutes in India. Including technology in business has been one of

the key factors for success. In this report, an attempt has been made to do the

comparative study of Ola and Uber. Here, we have tried to understand the dynamics of the marketing strategies these companies have adopted that helped them survive the

Indian market’s ever-increasing demand along with maintaining the quality of a

services. The report is qualitative in nature and based on secondary data collected

from different sources.

1.1 Entry of Cab Aggregators Around a decade ago, entrepreneurs developed many technical organisations such as airline ticket booking like MakeMyTrip.com and Yatra.com. another set of

entrepreneurs transformed bus ticketing Finally, a new breed of techies looking to

transform an even more fragmented sector in the country’s transportation industry Taxi services. It is difficult to get a fix on the number of taxis in India. Estimates vary anywhere

from 500,000 to around one million. The sector includes cruising taxis that can be

hailed off the streets, radio taxis, cars that can be hired for half-a-day or a full day within the city, for outstation travel, as well as taxis that are used exclusively by

corporates. More than 98% of this industry is estimated to be unorganized with many

players having as few as one, two or three cars. There is no predictability of business.

2

Data Source: Secondary Data

Features of Cab Aggregators

Revenue Model While day-to-day operations and maintenance of vehicles are taken care of by the

drivers and operators, all aspects related to technology, branding and marketing are

the responsibility of the aggregator. The aggregator’s revenue comes from a commission on every trip that the partners undertake. Currently the commission

ranges from around 10% to 20%. In several companies, this excludes the tax deducted . There are a lot of incentive schemes offered by various cab aggregators to increase the drivers on their platform. The constantly bring out attractive bonus/incentive

offers to retain their existing drivers as well.

3

A Network of Partners A different business model is also at work within the sector. Unlike a typical taxi or

car rental firm that owns its vehicles, businesses like Ola Cabs, Uber, TaxiForSure, Bookmycab, Savaari, TaxiPixi, YourCabs and others have adopted the aggregator model. Owning the cars is a very capital-intensive business and difficult to scale

beyond a point. The aggregator model is asset-light and therefore requires less capital.

The aggregator has a network of partners - either drivers who own and drive a single car, or operators who have a number of cars and drivers on their rolls. Typically, each vehicle in the aggregator’s network is fitted with a GPS device that is used for communication and metering and is integrated with the company’s IT system.

Data Source: Secondary Data

Business Model

• • •

A customer can typically book a taxi through multiple channels — the aggregator’s website, its call center or through a mobile phone application.

The aggregator connects the customers to its partners.

Once a partner accepts a particular request, the passenger and driver details are

shared. 4

• •

The driver then reaches the pick

-up point at the scheduled time. Once the trip ends, the customer

makes the payment with cash, or via credit card/mobile wallets.

“To the end customer, we are a car rental company. We control the entire

experience,” says Gaurav Aggarwal, founder and CEO of Bangalore-based Savaari, which has a network of 150

vendors and 3,000 cars. Aggarwal notes that to be a successful pan-India player

Data Source: Secondary Data

, the aggregator model is the most suitable. “In a large and diverse

country like India, every city has different context and local partners know it best.

Speed Bumpers in this Model The aggregator model gives the cab owners access to a wider pool of customers and reliable business. This allows them to optimize their assets. To the customers, it offers choice, convenience, accurate billing and

also a degree of safety since the driver and trip details are registered with the company

but customers have a lot of complaints, even

with the current players, and especially when it comes to local point-to-point travel:

• • • •

Many drivers are not familiar

with routes Taxis arrive late Taxis are not available at

Even confirm bookings get

Data Source: Secondary Data

cancelled.

5

1.2 The Ola Story When Bhavish Agarwal tried to rent a car from Bangalore to Bandipur and had a lasting bad experience. The driver of that car stopped right in the middle of the road

and started re-negotiating the while deal. When Bhavish refused to agree to his terms, the driver proceeded to abandon him in route his destination. The entrepreneurial-

headed Bhavish, instead of whining about the situation or rather the problem, decided to solve it good, and at large!

Data Source: Secondary Data

Ola Cabs Founding Team Because he got a first-hand experience of such a problem, after decent amount of research also realized that, this in actuality was a genuine and deep rooted problem for

the masses. A lot of customers had fallen prey to such situations and were desperately in need of a quality cab service. That was when for the first time, he could vision the amount of potential a cab

booking service could have. And after basic calculations, Bhavish started his business

start-up – OlaCabs.

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The Change This change including the entrance of Ankit Bhati was brought about somewhere

around December 2010. His solution was simply introducing a technology that bridged the gap and connected the cab owners with the commuters through the Internet, telephone or a mobile phone app.

On the other end, just like every starting entrepreneur, his parents too didn’t support . Basically a lot of pressure. But nevertheless, their support increased as they got

their first round of angel investment (from Snapdeal ) Moving on, Bhavish’s believed that anyone can have a good business idea but to function it successfully

one must a scalable models upon which the business runs. According to him, the

best or one of the best & safest model one can or should adopt is running a business with owning “zero” inventory. They went on to partner with a long range of Taxi Drivers, and all he did was added a touch of modern technology to the whole thing through which consumers could book cars at a short notice via their call center or via their app.

Bhavish Aggarwal and Ankit Bhati Data Source: Secondary Data

14

The Present Scenario And with the help of such ahead of its time & long term strategies, the company

began to grow at the speed of light. By 2014, the company was now pocketing a

network of more than 200,000 cars across 100 cities. Additionally, it was also

clocking an average of more than 150,000 bookings per day and also was now sitting on 60% of the market share in India.

Next, by the end of the year, Ola also expanded to incorporate autos in Bangalore and also expanded this service to other cities like Delhi, Pune and Chennai. Later,

they announced their biggest news so far. OlaCabs bought TaxiForSure or TFS in March 2015 for about $200 million. Although, this wasn’t their initial plan. Their

initial purpose was to fill in their huge requirement of drivers and hence, they had first tried to attract their drivers by paying them some Initial Bonus + Attachment

Devices Free of Cost, but since they failed, they had to buy the company to maintain their stable growth. Additionally, Ola who so far only had worked with

Drivers, had now also begun working with the cab operators after the acquisition. With this acquisition in place; they also launched “Cashless Rides” which not only

worked with the cabs on their network, but was also extended to “Auto rickshaws and Kaali-Peeli taxis” as well! And lastly, Ola recently has launched “Ola Cafe”. In

simple terms, through this service one can order food, grocery, vegetables etc., and get it delivered to their households. And when you look at Ola today, it has gone on to become India’s most popular mobile app for cab booking, out-beating their competitors like Uber. To add to that, they are also the largest platform with 4,00,

000 + cars across almost 100 cities.

15

1.3 The Uber Story There was a time when we had to wait outside hotels and in streets, soaking in rain yelling at Taxi’s to catch a ride home. Today, it’s as simple as opening an app on your

smartphone and pressing a button to get a cab delivered to anywhere you want. All thanks to Uber, the ride-sharing app that revolutionised the ways of transportation

. Valued at over $64 billion, Uber is now the go-to cab service in 60 countries and over 360 cities. Uber not only made transportation cheaper and smarter but also

opened up new opportunities for millions of drivers around the world. Uber’s disruptive technology, explosive growth, and constant controversy make it one of the most fascinating

companies to emerge over the

past decade. Uber’s story began in Paris in 2008. Two friends,

Travis Kalanick and Garrett Camp, were attending the Le

Web, an annual tech conference the Economist describes as

“Where revolutionaries gather to plot the future".

They were looking to invest in

Data Source: Secondary Data

something new, something that could actually solve a real problem we all

face every day. The idea for an on-demand cab service app came to their minds when they were hanging out on top of the Eiffel tower. At the time, there were apps for everything, but not a single app to grab a cab. So, Kalanick and Camp set out to invent an app that

would get you a cab with a single touch of a button

After the conference, the entrepreneurs went their separate ways, but Camp returned to San Francisco, he continued with the idea and bought the domain name UberCab. com.

The Early Days

16

Camp had a solid experience on app design and started prototyping for the “Uber

Cab” app. Uber Cab’s first beta test launched in New York 2009, with only 3 cars. People loved the service and the cheap prices. The app was a success. Uber Cab then

started to grow slowly, raising millions in funds, hiring new teams, expanding to new cities. The ease and simplicity of ordering a car fueled the app’s rising popularity.

The funding Quickly capturing the imagination of San Francisco with launch of its mobile app and

the power of summoning rides on demand at the touch of a button, the startup now needed an investment boost. Opening out with a Series A funding of $11.5 million they went on to snatch an additional $32 million in 2nd round funding.

The Rough Road From the beginning, Uber seemed a threat to the taxi industry. As a result, the new

start-up received a never ending list of lawsuits and bans, including a cease-and-desist order from the San Francisco Municipal Transportation Agency and California Public Utilities Commission.

To this day, Uber receives threats from all around the world from angry taxi drivers.

Thousands of taxi drivers protested in France and managed convince the government to ban Uber in the country. On top of all that, Uber is now being challenged by a new and similar cab service start-ups such as Lyft and Taxi.EU.

However, these will only be minor setbacks for the evolving new start-up which is now expanding globally at incredible speeds.

17

Data Source: Secondary Data In line with the Future Like Google (GOOG), Apple Inc. (AAPL) and Tesla Motors (TSLA),

Uber is also gearing up for a future of driverless cars. The company has partnered with Carnegie-Mellon University to help fund research on self-driving vehicles and

launched the Uber Advanced Technologies Center in Pittsburgh to do research and development. Speaking at the Code Conference in 2014, Kalanick summed up his

perspective on self-driving vehicles: “When there’s no other dude in the car, the cost

of taking an Uber anywhere becomes cheaper than owning a vehicle. So the magic

there is, you basically bring the cost below the cost of ownership for everybody, and

then car ownership goes away.” Uber's efforts to further research on self-driving vehicles illustrates how the company continues to be an outstanding example of disruptive.

18

Data Source: Secondary Data

Data Source: Secondary Data

Uber in India Initially debuting at Bangalore in August 2013, Uber made deep inroads within a year

by announcing a nationwide rollout in July 2014 and the country is now their largest geographical market outside of the

U.S. Facing heady competition from local rivals, including Ola – which has industrialist Ratan Tata

as an investor – Uber remains extremely bullish on its India

prospects, bringing in an additional

$1 billion (about Rs 6,400 crore) 19

investment for the next nine months. It already operated in 19 countries around the

world, and it had its eyes set on India – a market that had the potential to become one

of the biggest in the world. Since that first ride in Bangalore, Uber’s added 27 more

cities in the country, and found 400,000 driver partners.

It’s also been the subject of a rape controversy, been banned, been unbanned, launched Uber for autos, found a worthy competitor, become the most valuable startup in the world, launched Uber for bikes, pulled back Uber for bikes, been sued

by the government, sued a competitor, been sued by a competitor, had its cabs

impounded, had drivers stone its office, been reprimanded by politicians, fought for surge pricing, and in a bizarre set of circumstances, become an investor in its biggest rival. And if the company is to be believed, it’s only getting started!

Data Source: Secondary Data

Automaker Mahindra & Mahindra has entered into a partnership with Uber India to deploy electric vehicles on the US

cab aggregator’s platform, beginning with a few hundred vehicles in Delhi and Hyderabad in February next year before expanding to other cities in the country. 

Data Source: Secondary Data 20

Through this partnership, driver partners on the Uber app can avail themselves of a package which will include M&M’s electric vehicles at competitive prices, attractive

financing and insurance premiums as well as comprehensive maintenance package

they expect to train 30000 drivers under the uber Shaan programme.

Data Source: Secondary Data

1.4 Comparison of the Giants

Data Source: Secondary Data 21

Services Offered by Ola

Ola Mini: The India’s leading cab network recently announced the launch of its new point-to-

point service, Ola mini in Mumbai, Delhi, Noida and Gurgaon. The new service will

be offered at an introductory price of Rs 11 per km with a base fare of Rs 100 for the first 4 kms, making it the least expensive AC cab service available in the city, with

Ola’s promise of high quality and best in class travel experience to its customers.

Ola Share: Users who travel on the same routes can now use Ola Share to share their cab rides Ola Share has been designed to enable people to share their cab rides and help reduce pollution and congestion in their city. Ola Share makes for economical fares, since a

ride can now be shared by up to three people at any point in time.

Data Source: Secondary Data

Ola Micro: Cab aggregator Ola has started a new low-cost service that seeks to match rival Uber's

lowest-cost service, UberGo. Called Ola Micro, the service is being launched in seven cities in India at a per kilometer rate that is Re 1 less than rival Uber's UberGo service. The service will be available in Delhi, Mumbai, Kolkata, Bengaluru, Chennai, and

Pune

Kaali Peeli:

22

Ola has launched cashless rides through its in-app Ola money wallet for Kaali-Peeli taxi rides in Mumbai. Over 40,000 autos and Kaali-Peeli taxis are registered panIndian on the Ola app. To pay through the in-app wallet, the customer has to inform the driver that the payment will be made with Ola Money. On completion of the ride,

the driver will enter the fare displayed on the meter, followed by the four-digit OTP that the customer will receive through an SMS.

Data Source: Secondary Data

Ola Prime: Ola has introduced the 'Ola Prime' option in its cab line up, to facilitate business class

customers. The Prime SUV option is also available which facilitates customers

travelling in a big group. The Prime SUV will let customers seat up to six passengers. The Prime SUV service also includes auto connect Wi-Fi and top-rated drivers like

the Prime sedan service.

Ola Rentals: Online cab aggregator Ola has launched a new service called Ola Rentals which will

allow users to rent a car on hourly packages. The service is currently active only in

Mumbai and users can choose between the Mini, Prime or the Lux segments. Ola

will charge a base fare of Rs 750 for four hours and which will include travel of 40

kms.

Ola Outstation:

23

Online cab aggregator Ola has launched Ola Outstation, a cab service from Pune to

travel to Lonavala, Mumbai, Nashik and Aurangabad which can be booked and accessed in 2 hours from the time of booking.

Under the service, Ola offers Toyota Etios, Tata Indigo and Maruti Dzire cars.

Interestingly, users can book a trip for longer than a day, up to 10 days.

Data Source: Secondary Data

Ola Auto: Ola has over 1,00,000 auto rickshaws registered on its platform across 24 cities and plans to launch in more cities .

The company said its autos are available 24×7 in all the 24 cities and it has also launched a new billing system that will record the details of the trip including time of

booking, distance travelled and fare payable, either in cash or through Ola Money.

24

Data Source: Secondary Data

Data Source: Secondary Data

Services Offered by Uber UberPOOL: The rider needs to enter their destination when they request the trip, so the app can match them with other riders heading in the same direction. Each rider can have only one destination and they can't change their pick-up location or destination

after the request. The average time added to an UberPOOL trip is less than 5

minutes. Each UberPOOL rider can bring one additional passenger along. 25

UberGO: UberGO signifies a speedy, utilitarian and simple solution to get around quickly;

without the need to have second thoughts about choosing it! It’s perfect for absolutely

any kind of ride, especially the short hauls – think quick bank runs, short trips between meetings, jaunts to the mall and the movies; with uberGO even the mundane

daily commute to work can now be stress-free and relaxing.

UberX: UberX is a basic private car service that Uber has to offer, and it's also Uber's lowcost option. Uber X is very affordable, and is generally much cheaper than a traditional yellow cab. The basics: UberX vehicles hold a maximum of 4 passengers.

In India, UberX cabs include Toyota Etios, Maruti Suzuki Dzire, Chevrolet Enjoy, etc

UberBLACK/SUV: Uber Black is a luxury or premium category cab by Uber. It involves high-end cabs like Toyota Corolla, BMW, Honda City, etc. Uber SUV is priced similar to Uber Black because it has premium cars like Toyota Innova in its fleet.

Data Source: Secondary Data

1.5 Marketing Strategy of Ola Cab Segmentation, targeting, positioning in the Marketing strategy of Ola Cab – Ola cabs have been using segmentation parameters such as geographically dividing the market it serves into urban & metro in order to devise promotional and business  strategy based on demand in these markets. Also, it segments customers on the basis

of customer income profile such as Ola Luxury, Prime, Ola share, autos. 26

As the company serves different customer segments i.e. long route outstation

customers, customers within 8 Kms, Shuttle service and shared services, therefore it

uses differentiation targeting strategy. Ola Cabs has positioned itself as a company making mobility easy, convenient, affordable and safe 24*7.

Marketing Mix of Ola Cabs Product in the Marketing Mix of Ola Cabs: Ola Cabs is a mobile app used as a service provider for personal transportation. It has revolutionised the concept of travelling, Earlier hiring taxis from roads was a

harassment but now it has become hassle free as one can easily make a booking at his/her convenience without stepping out. Its fleet includes Honda Civic, Skoda Rapid

, Altis and Toyota Innova and offers different types of cab service that have a diversified range from luxury to economic like

• • • • • •

Ola Mini

Ola Sedan Ola Prime Ola Rental

Ola Outstation

Ola Auto

Ola Cabs expanded its operations In the year 2015, March it acquired TaxiForSure, a taxi service based in Bengaluru. Since 25th June of the same year, users could easily access TFS cabs from the mobile application of Ola.

Place in the Marketing Mix Of Ola Cabs: Ola Cabs is a company dealing via an online network. Cabs can be easily reserved through its own website and via Ola mobile app that can be downloaded from The App Store and Google Play Store. The company started its operations from metro city Mumbai in Maharashtra but later shifted its base to Bengaluru in Karnataka. By the 27

year 2014, it had extended its network to include nearly 200,000 cars that were

running in nearly one hundred metro cities like Kolkata, New Delhi, Chennai, Pune,

Bhubaneswar, Bengaluru, Hyderabad, Ahmedabad and Mumbai. Ola Cabs has extended its operations to include auto services and it started from Bangalore and

expanded to include places like Kolkata, Hyderabad, Chennai, Pune, Delhi,

Visakhapatnam, Guwahati, Jaipur, Indore and Chandigarh.

Price in the Marketing Mix of Ola Cabs:

At its onset, Ola cabs supported payment via Paytm only but later it included options for both cash and cashless via Paytm. Passengers are

nowadays concerned about convenience rather than prices. Ola Cabs offer rides in a comfortable setting with furnished and air-conditioned

cabs. It offers to price flexibility with its range of vehicles that includes economic-range, mid-range and high-range. Ola Cabs has adopted a penetration policy and has kept its price range reasonable so as to gain

a competitive advantage over rival companies. Promotion in the Marketing Mix of Ola Cabs:

Data Source: Secondary Data

28

It has adopted an extensive marketing policy to create high and

positive brand awareness amongst consumers. The company has taken help of every available medium like digital and print via SMS on mobiles, magazines, newspapers

and billboards. It has also used social media platforms to garner maximum coverage via Twitter, Facebook, Blogs and Instagram. The company offers incentives like free

rides, 50% discounted rides, rupees 5o off, first ride free for new members and promo codes to increase its customer base.

SWOT analysis of Ola cabs Strengths in the SWOT analysis of Ola cabs :

This helps in understanding the core areas of the business where it beats

the competition and has the competitive advantage in the market. Strengths are generally the core competency of the business.

• First Mover Advantage – Ola started back in 2010 and had the first mover advantage in comparison to its competitors which started very late in the segment. Though other taxi services

were already there like Meru, Ola targeted a new segment and is currently targeting mass segment owing to the low prices it offers

• Product Line –

Ola offers a wide product line which starts from offering services using bikes, auto, and different types of cars. It also offers different kind of services like local commuting, outstation and rentals and share cabs. Thus, it offers a

complete package of services to its users which fits different segments according to their usage.

• Technology – Ola makes use of state of the art technology with strong data analytics which helps it to forecast the demand in any geographic region accurately so as to

provide the balanced supply of cars for the commuters. The more the availability the more it will be used by the customers.

29

• Strong Brand Name – Ola has been able to establish high brand recall and brand name in the market as

there are only a few players in the cheap rides segment.

• Low Investment – Ola being an aggregator service provider does not have to possess the fleet of cars to run their business. Drivers from the region collaborate with the Ola to

meet the demand from the customers and hence there is always a cash surplus.

• Dynamic Pricing – Ola has been using dynamic pricing model to rate the ride according to the

demand of the rides in a particular region or during the bad weather conditions. This helps to manage the supply in an efficient manner and at the same time adds to the bottom line.

Weakness in the SWOT analysis of Ola cabs: This is the pain area of the organization where it does not have the resources or skills.

Business has to work upon these areas so that they are not left behind from the competition.

No Control over Drivers – The business model that Ola is executing leaves itself with no control over the drivers.

Drivers play important role in making the brand name of Ola and hence any misbehavior of the driver with the customer directly sabotages the image of the brand  in the market.

Fake Rides – Ola drivers have started to ask riders to book fake rides just to increase their ride counts for the day and Ola has no control and visibility over this. This leads to a loss

of revenue as the drivers are getting paid for nothing. 30

• Dependence on Internet –  Customers can only book rides if they are connected to the internet. As in India, the connectivity is an issue and hence customers are not able to book rides.

•Market Segment – Though they market themselves as mass segment

usage people who are tech savvy are able to use the services. In India, the ratio of tech-savvy people is very less in comparison to the non-technology users.

Opportunities in the SWOT analysis of Ola cabs: This helps in understanding what other things a business can do with the current skills

and resources. It helps the business to know the areas where it can expand and take a lead in order to diversify the business and expand the customer base

• Wider Market – In order to attract non-tech savvy customers, Ola has to rethink of their business model where such segment can also make use of their services and it will be a big breakthrough as it helps to enhance the customer base to a great extent.

• Increasing Internet Penetration –

With the increase in the initiatives taken by the government to make Smart

cities and penetrate the internet to remote places as well provides Ola with an  opportunity to focus on these regions and expand their services to Tier 2 and 3

•

cities as well.

Poor Government Transport – In Tier 2 and 3 cities there is a lack of proper government transport facilities and hence this opens door for Ola to look into those cities and capitalize on the opportunity

31

Data Source: Secondary Data

Threats in the SWOT analysis of Ola cabs: This analysis helps in understanding what are the areas which can impact the business in future or right away. So business has to prepare itself to handle the threats in the market landscape.

Government Regulations – Government regulations about the taxi service industry is unclear at the moment. Taxi providers are constantly being threatened by

the changing rules and regulations.

• Customer Satisfaction - With bad customer service and presence of Uber  in the market makes the customers switch the brands.

•

Competition - There is an increasing competition in the market due to the presence of Uber and other emerging players in the local regions. Competition

or increasing number of players in the market with same value proposition is a

threat to business as it directly lowers the customer base and revenue.

Competitive advantage in the Marketing strategy of Ola Cab –

•

Strategic Acquisitions: In order to strengthen its business, the company has been acquiring different

companies such as TaxiForSure.com for $ 200 mn in 2015, to strengthen its 32

shuttle service it acquired Geotag, an intelligent transportation firm in the year

2015, further to introduce Ola money it acquired Qarth in the year 2016 and recently it acquired Foodpanda to compete in the meta market.

•

Promotional Strategy: Innovatively thought concept ideas and ads of the company such as Chalo

Niklo, ?6/ per Km, Ola Share pass, Ola outstation, shuttle and Ola peddle has helped the company in being ahead of its peers.

Distribution strategy in the Marketing strategy of Ola Cab – Operating in 180+ cities in India Ola Cabs serves more than 8,00,000 customers every day by empowering and collaborating with around 10,00,000 drivers in its platform. Ola has a dedicated team of 6000 employees who work dedicatedly to provide best in  technology services to its stakeholders.

1.6 Marketing Strategy of Uber Segmentation, targeting, positioning in the Marketing strategy of Uber – Segmentation is the process of dividing the market into the groups of homogeneous

characteristics. Uber uses demographic and geographic segmentation variables which helped the company pricing its services accordingly.

Both geographic and demographic segmentation is important because Uber needs to

know which areas to target for customers who are ready to use an “on order transportation service” over public transport services. If we want to define the type of  differentiation used by Uber, then we can use the terminology “Cost based

differentiation”. Because of the very structure of Uber as a company, there is a huge pricing advantage to the end customer when they compare Uber taxis vs Publicly available modes of transport.

User benefit based and pricing positioning strategy is used by Uber to attract customers from different strata of the society. Because day to day travel is a huge cost to customers, positioning on the basis of Economy makes a huge difference in the 33

mindset of the customers.

Marketing Mix of Uber. Products in the marketing mix of Uber - Uber provides people with the option to ride on taxis booked using mobile apps or desktop website. Uber has made transportation services a lot more easily accessible and comfortable. Wi-Fi enabled

cabs and car-pooling are taking customer experience to a different level.

Some of the varied services provided by Uber, people are using on daily basis across the globe are:

• • • • • •

Uber Go Uber Pool

Uber XL Uber Black

Uber auto Uber Taxi

Data Source: Secondary Data

Places in the marketing mix of Uber Uber was founded in the United States of America in 2009 but since 2012, they have started their international services and are doing quite well. Uber in India has

revolutionised the way people travel to a workplace and back home. It is affordable,

comfortable and safer than other means of transport. Uber works in Three Tiers in every country, where they classify cities based on development, infrastructure and population. Delhi, Kolkata, Bengaluru and Mumbai happen to be in India.

Pricing in the marketing mix of Uber 34

The fact that Uber provides people with access to comfortable and air-conditioned

cars on hourly and trip basis makes it the best mode of transportation. Uber clearly

uses Penetration pricing. Uber has put a stop to the exploitation of travellers by local transportation companies. People are now accessing Uber and travelling in peace. Pricing continues to play an integral role in the popularity of Uber worldwide; the company is providing the most comfortable rides at the cheapest price possible. People are quite happy with the pricing and are making the best use of the available

options like Uber-Moto, Uber Pool and Uber Go. 

Data Source: Secondary Data Promotions in the marketing mix of Uber Uber follows a very distinct marketing paradigm for developing a base of loyal users.

Free rides, discounted rides and referral benefits are some of the top methods used by the enterprise for alluring customers. The quality riding experience makes people

crave for it more and more, which later turns into a habit and the company profits.

Uber has worked hard on marketing and has provided thousands of free rides across the world to get people addicted to the new way of commuting due to which the brand gets marketed itself.

35

SWOT ANALYSIS OF UBER. Strengths in the SWOT Analysis of Uber :

• Brand Equity: Uber is a recognised Brand Globally with presence in over 50 countries. Uber

has already surpassed Automobile giants like General Motors , Ford and Honda on Brand value Parameter. With increasing internet penetration and coming of

age technology, Uber is expected to

grow rapidly in the coming years. It is currently valued at over $68 Billion. Due to the high valuation

of brand, Uber attracts investors too

.

•

Data Source: Secondary Data

Low Fixed Investment:

Uber, being an aggregator does not require high fixed investment and so it

becomes easier for Uber to add more cities to its network. It has expanded rapidly because there is no fixed investment or infrastructure required. 

• Emphasis on Customer Satisfaction:  Uber has always prioritised customer satisfaction. Uber has understood that it is serving in a totally customer driven market where competition is increasing. To

keep an edge over the rivals, it needs to provide better customer satisfaction and

enhanced user experience.

• Dynamic Pricing strategy: 36

Uber has adopted the dynamic pricing strategy which works on the demand 

supply principle of economics. Higher the demand, Higher the price. This becomes really beneficial for the company and the drivers. In peak hours as well as in Night time, drivers earn a good amount of money.

• Adaptive: Uber is also known to adapt very well to business conditions. Because of its  international exposure, Uber faces various problems in various regions. Uber is

known to be a smart marketer and has adapted very well wherever it has established its business.

• Growth rate:  The growth rate of Uber can be seen below. This concerns growth rate in India only. As we can see, Ola is expanding by more than 100% year on year and this expansion has continued in 2018

WEAKNESSES in the SWOT Analysis of Uber: 

• Highly Dependent on Manpower:  Drivers are the face of the company and thus the company’s image depends on the behaviour of drivers towards the customer. This is a highly uncontrollable situation even though strict guidelines are provided to the drivers.

•

Highly dependent on Internet:  Uber is heavily dependent on internet connectivity to expand and develop itself

in developed countries. Thus, it is facing problems in developing and emerging

countries where internet is slow or poor. 

•

Caters only to Tech Savvy individuals: 37

 Digital Literacy in developing nations is low and hence technology-based

applications such as Uber only cater to those who are technologically updated.

• Low barriers to entry:  Uber is in an industry where the barriers to entry are very low so it will face competition in multiple fronts. Already in India, Meru, Ola and others are giving tough competition to Uber.

OPPORTUNITIES in the SWOT Analysis of Uber:

• Dissatisfaction with unorganized market:  Customers are unsatisfied with the unorganised cab market which presents an  opportunity for Uber to take advantage of. This is one of the main reasons for

the success of Uber. Local cab drivers are known to be rude and do not comply. 

• Increasing internet penetration:  With Government’s move to digitise India, Number of smartphones are increasing and technology-based applications like Uber can expand their services to other cities and enlarge its footprint over the country.

• Rising Disposable income:  With rising disposable income, customers are willing to spend higher on convenience.

• Poor government transport: In markets like China and India where there is over population and people are tired of using public transport, Uber provides a kind of privacy and relief where the user gets his own space to travel and does not have to drive in Traffic.

• Logistics:  38

A smart idea for Uber can be to launch movers and packers support whereby people can search movers and packers in the nearby area via Uber. Local logistics can also be integrated. Though this is easier said than done.

THREATS in the SWOT Analysis of Uber :  Government regulations are unclear: The primary point of disagreement between cab

aggregators and government regulators is about their legal status and whether they should be treated as conventional taxi companies or as IT companies. Customer retention and brand switching: As competition rises, it becomes all the more difficult

to retain customers and drivers for Uber. Any monetary advantage can sway the

customers and drivers from Uber.

• Low margins: 

Uber helps the drivers to get a high number of daily rides but it does not have a

high-profit margin for the drivers and thus they can easily be swayed away.

• Revolt from unorganized market:  The unorganized market of cab drivers can revolt against such companies which are taking away the bread and butter of drivers from unorganized market. Such a revolt will directly affect the operations of a brand like Uber.

Competitive advantage in the Marketing strategy of Uber-

• Global Presence:  Having expertise and experience of operating in more than 70 countries globally is what making it competitively ahead of its competitors. Its presence in the

remotest areas and easy & timely availability of the services are some of the

major factors for its success.

• Strategic partnership:  It has been tying up with many car manufacturing companies to jointly produce

customised vehicles exclusively for Uber which is giving a competitive 39

advantage to the company over others. Recently it partnered with Daimler to

build autonomous vehicles which will operate on Uber’s transportation network.

Distribution strategy in the Marketing strategy of Uber – Uber have a fleet of company owned cars, SUV’s and independent vehicles who get themselves registered with Uber for being in the business. Uber exclusively tie-up with the car and vehicles manufacturing companies customising its fleet of cars. Since

the company operate in more than 70 countries and 450+ cities across the globe, A problem facing Uber is that being in the services sector, several companies have

replicated the same business model as UBER (OLA in India) therefore it is facing stiff competition where distribution of its services is concerned.

1.7 Marketing Campaign

Marketing Campaign of Ola.

Billboards / TV Commercials Ola Cabs have used Offline marketing channels such as Banner ads, Newspapers Ads, television ads aggressively as well as the online marketing channels like Faceboook, Twitter as a part of it’s marketing campaign.

Data Source: Secondary Data

Advertising Partnership with TVF Why create content when you can get pros to do it for you. Ola gets to gain from

TVF’s existing fan base, while TVF gets to reach out to Ola’s customers 40

Data Source: Secondary Data

Special Campaign on Valentine’s Day Valentine’s Day is all about love, gifts and marketing. There’s nothing a marketer loves

more than a brand doing a good job at marketing. Ola Cabs has come up with a

winning campaign for this Valentine’s Day. s

Data Source: Secondary Data

IPL Sponsorships The IPL icon in the Ola app appeared on match days between 11am and 2pm. Customers could hit the icon (just like they do to book a cab), and get free tickets to

go and watch their favorite teams. Fans also stood a chance to win hospitality tickets

by participating in contests on Twitter using #OlaMatchDay by tweeting to @Olacabs

.

41

Data Source: Secondary Data

Ola Boat Initiative Ola introduced its ferry rescue service in Chennai during floods which filled the roads of Chennai with water, blocking people in their offices for multiple days. Ola’s boats

with professional rowers are deployed to help those stranded in the water-logged areas and to deliver essentials like food and water,

Data Source: Secondary Data

Marketing Campaign of Uber Uber’s marketing strategy in India was never once about large media spends or traditional mass marketing methods like TV, Print & OOH. It was never even about

huge digital spends. Uber stuck to basics, always. The Uber team focused on building 42

a good product, putting it out in the market and speaking about it in a language that

instantly built a connect with the consumers.

Phase I: Influencer Marketing & Limited Access Uber launched itself in Delhi NCR, Bangalore & Mumbai. They brought out a campaign called Rider Zero where they roped in key influencers from every city to try

out Uber’s service for the first time “secretly”.

• • •

From Delhi, it was Zaheer Khan, Neha Dhupia & NDTV Host Rajiv Makhni From Mumbai, it was Anil Kapoor, Arbaaz Khan and Rahul Bose From Bangalore, it was Raghu Dixit and Vasundhara Das

Data Source: Secondary Data

Phase II: Referral Marketing Instead of spending crores of marketing money on pushing traditional campaigns,

Uber decided to spend the money on giving the consumers a first hand experience of the service to try out their product. Uber went heavy on referrals and the first thought

was to target corporates asking them to become “Office Heroes”. Since then Uber’s referral marketing has evolved coupled with heavy discounts and free rides.

43

Data Source: Secondary Data

Phase III: Heavy Discounts, Festival Marketing and Product Development With their referral marketing in full flow, They decided to become ‘available’ for consumers when most needed which meant

• •

Uber delivered kites on Makar Sakranti, colors on Holi and cupcakes on Rakhi.

Uber even offered discounted rides to your IPL matches and other key events.

Data Source: Secondary Data

44

Uber also offered to give mums a Mother’s day makeover or lovers a ride in an Uber Chopper on Valentines Day. Now, festival marketing is not new at all, but for a new entrant global Cab Service company to appeal to consumers in the local context makes for a brilliant strategic move. The trick lies in being able to do this subtly,

something that most brands fail at.

Data Source: Secondary Data

Tie up with Zomato

Data Source: Secondary Data

Tie up with PayTM After they ran in trouble with the RBI regulatory authorities for flouting the 2 step gateway – they had to integrate their payment system through PayTM wallet which in 45

retrospect turned out to be a good move considering PayTM is now boasting of 10 million downloads on Google Playstore alone.

Data Source: Secondary Data

Phase IV: Strategic Partnerships Tie up with BookMyShow Again, this proved to be extremely contextual

Uber tied up with BookMyShow as official logistics partner during the ongoing T20

Cricket season.

Data Source: Secondary Data

46

Tie up with Mini Cooper Uber partnered with Mini Cooper to give their users a 15 minute ride using their app,

completely free. One just needed to use the code UberMINI14 to get Rs. 500 off on the first ride. Brilliant hook, yet another superb tie-up.

Data Source: Secondary Data

1.8 Challenges faced by Cab Aggregators in India

Finding Quality Drivers The cab aggregator model has been relatively new to the Indian market, for the

customers, as well as the drivers. For ages, drivers held a higher bargaining power and customers had to suffer, however with this model into place, getting polite and

respectable drivers is hard. Training them takes up a lot of efforts and once in a while, there also happen incidents which totally shatter their images as companies.

The Uber Rape case in 2012 shook the entire nation when an Uber driver in New Delhi raped a young 25yr old female executive. Uber was very new to Indian markets at that time and this event tarnished its image badly in the market.

Ola Cabs has also been affected several times due to the misbehavior of its drivers.

One such case is from Mumbai, where one of the Ola drivers, was accused by a woman for stalking and molesting her after her ride. He followed her for a week.

47

Data Source: Secondary Data

Highly Competitive Environment The past few months have seen the leaders of the Indian taxi aggregator market take

their fight to the courts. Uber accused Ola of creating fake accounts to sabotage the former. The latest twist in the case is that Uber has sued Ola for $7.5 million (about

Rs 50 Cr) alleging that Ola created fake accounts to make bookings on Uber only to cancel it once the drivers accepted.

48

Data Source: Secondary Data

Increased Resistance from traditional transports Taxi and auto-rickshaw drivers across major Indian cities from Delhi to Mumbai and Bengaluru to Kochi are taking turns to protest against what they say is a

threat to their livelihoods from cab aggregators Uber and Ola. They are also demanding better rules to level what they see as an uneven playing field. The latest protest came in the form of an indefinite strike in the country’s capital

last month in August, with an estimated 90,000 auto-rickshaws and 15,000 traditional yellow top taxis stopping work, making life difficult for thousands of

daily commuters - they cover shorter distances which do not have bus connectivity.

49

Data Source: Secondary Data

Roadblocks by the Government Being earlier wrapped up by the Delhi Government on surge pricing issues, Ola and

Uber are now framed by Indian Road Ministry on the ways fares are calculated. Both the companies have been asked to start charging fares by taxi meters and not GPS. As said, this is the violation of the Motor Vehicles Act and the distance measured

through GPS are often inaccurate. Aggregators stated that It is strange to see that the technology (GPS) that is being utilised by the entire world to measure distances and calculate fares has suddenly become inappropriate in India.

Data Source: Secondary Data 50

Surge Pricing Issue: The recent clampdown on surge pricing by the Delhi and Karnataka governments has ignited an intense debate on the model’s pros and cons and efforts to curb it. Surge

pricing refers to the extra charge that kicks in during peak hours in areas when

demand for cabs spikes sharply. Delhi chief minister Arvind Kejriwal has gone so far as to claim that surge pricing is nothing but “daylight robbery”, while the

spokespersons of cab aggregators such as Uber have claimed that it is just a marketclearing mechanism to ensure cabs are available for their customers who value them most at a particular point of time (and are willing to bear the extra cost.

Data Source: Secondary Data

2. Research Methodology Statement of Research: Comparative Study of Ola & Uber.

1. Formulating the Research problem

• • • •

Unit of analysis: Marketing strategies Uber and Ola Characteristics of interest: Popularity of these companies amongst Consumers

as well as partners/drivers Time and space boundary: 9 Months Environment conditions: Difference in consumer preferences, competition amongst the major players. 51

2. Objectives of the Research

• • • • •

To identify the key players in the Cab Aggregator Model in India

To compare the various parameters of performance, finances, strategies, used by

these players for their growth and survival in this Industry To study the consumer perception and behavior towards these companies and the products that these companies offer.

To understand the needs of the partners/drivers of these businesses To list out the challenges faced by such businesses for their survival in such a hostile and competitive market like India

3. Extensive Literature Survey A considerable amount of this research project is prepared with the help of several articles in newspapers, magazines and website, which are mentioned in the Bibliography at the end of the study.

4. Developing a Working Hypothesis 1. H01 -Age of customer does not have impact on Choice cab H11 - Age of customer does have impact on Choice of cab 2. H02 -gender of customer does not have impact on Choice of cab H12 -gender of customer does have impact on Choice of cab 3. H03 -quality of service does not have impact on pricing of the cab H13 - quality of service does have impact on pricing of the cab

4. H04 -frequency of traveling via. these cabs do not have impact on frequency

of coupons H14 -frequency of traveling via. these cabs do have impact on frequency of

coupons

5. Preparing the Research Design This is conclusive type of research. The objective of conclusive research is to test hypothesis and examine specific relationships. Conclusive research is more formal

and structured than exploratory research. The findings from this research are 52

considered to be conclusive

Every project requires a conceptual structure within which the research would be conducted. The findings from this research are considered to be conclusive. Further it

becomes a descriptive research as it studies the consumer and partner’s perception

towards Uber and Ola in India. This research is formal and structured and the data analysis is quantitative

6. Determining Sample Design

• • • • •

Research instrument: Questionnaire Sample area: Mumbai

Sampled population: 17-25years (consumers) & 18-60years (drivers) Sample size: 100 + 50 = 150 Sample type: Non probability sampling

7. Sources of Data The data has been collected from two sources i.e. Primary and Secondary

•

Primary data is collected through observations, interviews and surveys. A combination of questionnaire techniques and discussion with the respondents

•

was used to collect the required primary data.

Secondary data is normally collected from books, journals, articles, websites,

magazines and other such sources. In this project, information from the

Internet consists of a major part of secondary data.

8. Sources of Data

•

The survey method was used for conducting the research

• Two questionnaires were prepared, one for consumers and one for drivers • Each survey had 100 and 50 respondents respectively, therefore a total of 150 respondents

9. Analysis of Data Once the important task of collecting the data was completed, the data was systematically analyzed from all the aspects. The data was tabulated and statistical

inferences were drawn. This made the information collected appropriate and easy to 53

understand.

10. Preparing the Research Project This project report is divided into three parts:

• • •

Preliminary Pages (Title, Acknowledgements, Index) Main Text (Introduction, Main Report, Conclusion)

End of Report (Bibliography, Webliography)

Limitations

•

Geographical Limitation:

This survey was conducted amongst drivers and consumers of Mumbai City only. Although the service of both the companies may be standardized all over the country, there is a possibility that the mindsets of the consumers may differ from city to city.

•

Secondary data might be influenced: Some of the information for this study has been taken from newspaper articles and websites. This data might be influenced by the concerned companies for publicity, and the same may reflect upon this study.

•

Some information might not be updated: The following study was conducted throughout the year from November’18 to January’19 and so the information mentioned might have changed in real time

like new investments, bigger fleets, bigger market share, newer marketing campaigns, etc

•

Tools used for analysis are basic: The tools used for analysis of the findings are basic. And so, newer or better analytical methods have not been used because of lack of technical knowledge about the same. There may be a possibility that better analytical tools may have

bought clearer findings

54

3. Review of Literature Bhalla, Mona; Rallan, Pallavi; Jain, Surya and Aman Chhajed (2018), highlighted that

the Taxi market in India is primarily an unorganized sector; however, over the years the private sector has identified opportunity in this sector which has given rise to the organized taxi market in India. Additionally, the growth of taxi aggregators in the

organized transport sector has been a significant one. It surely has overcome the complications of other modes to a great extent and has led to a disruption in the economy. Prima facie, the most impacted sector due to the rise

of the Taxi Aggregators is the unorganized taxi sector. The share of unorganized sector is reducing year by year since the inception of taxi aggregators in 2010. But, it is needless to mention that unorganized sector in India will never see the end of its

reign, only because of the growing population, with most being in rural areas and 55

unable to afford the privilege of taxi aggregators. Even in developed cities, organized sector has been unable to meet demand. This underutilized capability of this sector,

provides huge scope which is likely attract more players in this market. Hence, the existing players need to develop distinct capabilities with the help of technology in order to capitalize on the opportunity in this sector in the future, maintain efficiency and face local and global competition.

Bhowmik, Shuvayan (2017), stated that the business is booming in a huge way in India with versatile private operators both national and international investing

tremendous money in setting up the call centers, acquiring fleets of new cars, and

incorporating latest technologies in their vehicles. It has proved to be the win-win

situation for government, radio cab companies, chauffeurs and the most importantly

passengers. Change in the people’s mindset has been the greatest factor in the growth of radio cab market. But there are certain other aspects which are acting as the

obstacles in widening the radio cab market such as high fares, Telecom Regulatory

Authority of India (TRAI) caps on the SMS and the unavailability of parking area. Radio taxi companies have to strike a perfect balance between growth drivers and challenges to move ahead.

Khupse, Mukund H. (2017), discusses in depth about the reasons due to which people use the app-based taxi services. It was found that all the basic reasons are important

and also statistically significant. As expected, the reasons such as quick availability of the cabs, safety, economical than traditional taxies, attractive cash back & discounts

on rides are the most important reasons for using the app-based taxies. The visitors have not given much importance to cashless system, Wi-Fi connectivity and

negotiations and bargaining. In brief the app-based taxi companies such as Ola an Uber must take care of the aspects highlighted above while improving their services.

Increasing prices or removing offers and cash back may probably disconnect their travellers from them similarly, the availability of taxi and safety assurance is also

equally important. The study however concludes that, due to a large number of

benefits provided to the travellers, app-based taxies are being very popular day by day , not only in the metro cities of India but also in the other urban areas. However, a consistency in quality will make them able to survive in future. 56

Kumar, Kishore P. and Kumar, Ramesh N., (2016), says that there is stringent competition in the organized cab services industry therefore organization need to

motivate consumers through coupons. The innovative behaviour of consumers helps to download mobile apps and further motivates them to redeem coupons while

booking cabs. The results of this study are consistent with earlier research studies because it is found that price conscious consumers are likely to redeem coupons. The modern consumers are innovative and at the same time they are price sensitive

therefore coupon redemption helps for customer retention. The brand image also plays a vital role in customer retention apart from offering coupons.

(Pajaree Ackaradejruangsri, 2015), stated in Urban cities getting a taxi that is safe and reliable is a major challenge as passengers have to suffer from being overcharged, also that taxi drivers refuse to go by meters, refuse to take passengers and sometimes the taxi drivers don’t know the directions which are some of the common scams while some case also escalated into a particular form of crime. Factors that influence

passenger decision for rides is the passengers wish to ride in a taxi that is nice and clean, consistent and predictable, with a professional driver, using a booking that is fast and easily available and utilizing a payment method that is transparent. By

considering the above-mentioned leading factors of influence, it may be said that a

prompt, sure, safe and comfortable ride are the primary motives behind a passenger’s decision to hire a cab. The main causes of hesitation for not using the Radio taxi app were that, it is easier to grab a taxi from roadside, passengers do not have to use the

application or they may not have the knowledge of how to contact radio taxi operator

Using the app is complicated, there are doubts about the payment, method used, also

doubts about the services of the operator and unwillingness to pay for the booking fees and the additional charges of waiting charges of the cab.

(Kunal Lalani, 2015), talks about the growing taxi business in India which is growing at a healthy rate of 20-25% ever year, the organized sector of taxi market alone which

has accounted for just 4-5% of taxi market in India and is expected to grow to $7 billion by 2020 where companies like Ola, Uber and Taxi for Sure that operate as Taxi Aggregators. The revenue model of taxi aggregators is such that they do not 57

employ the taxi drivers or own the fleet cars but earn commission in the range of 10-

20% of the driver’s journey. The long-term strategy for making profits in the taxi market is by Monopolization of the taxi market. Though the fares are low the normal radio taxi cabs and other taxi operators will not be able to match this low pricing

scheme adopted by the organized sector. These aggregators will then establish a monopoly which will enable them to have the freedom of charging very prices even from the cartels and exploit the consumers taking them for a ride. Once the customers

get used the services provided by them the aggregators will charge three to four times

fare to recover the losses. The taxi aggregators masquerade as technology companies which are grossly misleading and so scot free of the regulations set by the government which is governing the regular taxi operators. The technology quotient of taxi

aggregators is a misnomer since radio cabs were the first to adopt the technology

employing radio networks, GPS tracking and bookings through websites and smartphone applications. The taxi aggregators avoid paying service taxes by masquerading as technology companies from different jurisdictions much like the ecommerce companies.

(Netscribes Industry Insights, 2015), says that the organized cab service forms a small part of the total taxi market. And according to the market analysts the taxi market is

estimated to operate about 60,000 cabs in India which includes the private fleet

owners and taxis based on aggregation model. Online bookings account for a minuscule share of their business for the traditional radio cab companies based on

ownership model. According to a research, operators working on the traditional

ownership model or specifically radio cab companies have an average of 30-40% of their bookings on website and smartphone applications. But the online taxi aggregators boast that their way of doing business is superior to the traditional radio

taxi operators. The aggregator-based taxi service through online services is expected

to grow at a CAGR of 36% over the next 5 years. The growing online taxi market of India will predominantly owe to rise in the disposable income of the population in a

growing corporate sector. Despite the growth potential of the market the high fares along with the increasing operating costs are the basic challenges which will threaten

to pull down the business.

58

(Rafi Mohammed, 2015).He focuses more on Deregulation than Regulation of the taxi services. Uber says that it is a rideshare service and not a taxi service wherein the

taxis cruise the roads seeking fares but ridesharing services do not rely on apps to arrange a form of carpooling. Because of this minor distinction Uber has successfully argued that it should remain immune to the taxi regulations. Since not being

categorized as a taxi provides rideshare companies like Uber with a pricing advantage

. Taxis are to run on pre-approved prices by the government. Uber is rideshare service hence it has the flexibility to raise and lower its fares based on demand. Because of

this Uber undercuts fares of the taxis during off-peak times and charges high fares during high demand periods. Taxi companies are defensively lobbying to regulate the ridesharing services which will lead to more competition and thus leading to

deregulation which will allow every car service to set their own fares. Uber’s pricing model of Peak and off-peak should be adopted by the taxis which would allow the taxis to benefit from flexible pricing in on-street pick-ups where they still have a

monopoly. Apart from pricing, distance is also important when it comes to profitability. Companies should creatively use price to focus on per trip profitability.

Riders, for example, can input their origin and destination into an app and receive a customized quote that takes into account the profitability derived from longer

distances i.e. discounted prices for longer trips. The difference between taxis and ridesharing is that the drivers in ridesharing model are inexperienced and rely too much on the GPS which leads to extra travel time and extra cash to the commuters

which is not as issue with the taxi drivers as they have accumulated hard-earned knowledge of various routes and traffic patterns. Taxi companies need to realize that

technology now plays an important role as people love using smartphones and

ridesharing model is also based on apps through whichpeople book cabs so if they do not offer such services then they might lose their business soon.

(Pooja Singh and Rekha Singhal, 2014), talks about the process or steps to start a Taxi or Cab service in India. The steps include assessing the Taxi service market and the risks from the new companies entering in the market, the crucial areas where the

service is to be started. Majorly now the radio taxi market has seen a shift from catering to airport pickup and drops to providing point-to-point communication

services across the big cities. This shift has made the operators earn a 30-50% of their 59

revenue from the airport pickup and drop services. There are many new models which are now being pressed in the taxi market which are used by the operators to optimize

the comfort and efficiency. Also, for commencing the taxi business the operators need to have a license and permit which are granted to them by the respective state

governments. RTO’s under these state governments have the power to provide fleet licenses to the radio cab operators and they also set the minimum service

requirements for operators to protect the public interests like the fare structure,

processes to be followed by the drivers, driver and operator code of conduct, fleet strength and geographical scope of operations. The driving permit is the basic document required by the taxi drivers which enables them to drive in specific areas in which he/she is allowed to ply the vehicle and an authorization to use it as public

transport. The process of obtaining the permit from the authorities is also laid out in

the report. Apart from this the cab operators need to have a call center or their own telephone network which will enable the commuters to contact and book the taxi

services. Last thing that is very important is to have responsible and good drivers, which will not deteriorate the quality being provided by the operator companies thus

making a good business for them in India. This article talks about the process or steps to start a Taxi or Cab service in India. The

steps include assessing the Taxi service market and the risks from the new companies entering in the market, the crucial areas where the service is to be started. Majorly

now the radio taxi market has seen a shift from catering to airport pickup and drops to providing point-to-point communication services across the big cities. This shift has

made the operators earn a 30-50% of their revenue from the airport pickup and drop services. There are many new models which are now being pressed in the taxi market which are used by the operators to optimize the comfort and efficiency. Also for commencing the taxi business the operators need to have a license and permit which

are granted to them by the respective state governments. RTO’s under these state

governments have the power to provide fleet licenses to the radio cab operators and they also set the minimum service requirements for operators to protect the public

interests like the fare structure, processes to be followed by the drivers, driver and operator code of conduct, fleet strength and geographical scope of operations. The driving permit is the basic document required by the taxi drivers which enables them 60

to drive in specific areas in which he/she is allowed to ply the vehicle and an authorization to use it as public transport. The process of obtaining the permit from

the authorities is also laid out in the report. Apart from this the cab operators need to

have a call center or their own telephone network which will enable the commuters to contact and book the taxi services. Last thing that is very important is to have

responsible and good drivers, which will not deteriorate the quality being provided by

the operator companies thus making a good business for them in India.

Venkatesh, G. and Easaw, George (2015), says the success of the taxi aggregator business model is ample proof of the ever-growing influence of technology in the

success of a business. Technology has played a greater role in effective alignment of demand and supply in taxi aggregator services. This paper highlighted the innovative

manner in which the aggregators like Ola and Uber have penetrated the Indian market using smart phone technology. They have identified the problems in urban transportation in Indian metros and then converted them into business opportunities.

What is more, they have achieved success in their efforts too. Research on service supply chains is still evolving. The peculiar nature of services adds to the complexity

in service delivery. However, technology can be a great enabler in service quality.

Having achieved success, the taxi aggregators need to focus on performance measures to ensure the sustainability of the business model. With increase in the levels of the

service quality, the expectations of customers are bound to grow in the future.

Performance metrics enable benchmarking of the services and direct the focus on continuous improvement in service quality. Taxi aggregators should also focus on

innovations to grow the business.

4. Data Analysis and Interpretation Here, we have collected answers for the survey from various age group and different sex to ensure the neutrality of answers.

61

Response

Total no. of respondent

17-21

59/102

22-30

25/102

31-45

9/102

45 & above

9/102

Data Source: Primary Data The survey revealed that most of the consumers are from the age group of 17-21 followed by people from the age group of 22-30. So we concluded that most of the young generation prefer this cab services its maybe because of the reason that people from this generation are more close to the technology and are very open to adapt it.

Data Source: Primary Data Response

Total no. of respondent

Friends and Family

54/102

Newspaper & television

23/102 62

Out of home Advertisement (Stickers on the cars / hording)

22/102

Internet

3/102

Data Source: Primary Data This survey revealed that most of the consumers came to know about Ola /Uber by word of mouth & friends/family, 21.8% came to exposure by out of home advertising i.e hoardings billboards etc, others through promotions on social media and internet

and also through newspapers and television advertisement.This concludes that ubers strategy of spreading its name through it quality of services and promotions and not

through heavy spending on promotions.

Response

Total no. of respondent

Strongly disagree

13/102

Disagree

20/102

Neutral

33/102

Agree

27/102

Strongly Agree

9/102

Data Source: Primary Data This survey has brought some astonishing results on the part of consumers thinking as expected, a lot of people like upto 35% of them agreed to the fact that the system is

changing rapidly however, the cab aggregators are giving a tough competition to the

taxi & autorickshaw’s and also affecting their expenses as travelling to destintions 63

using cabs is a little costlier than old transport. A total of over 33% respondents felt

that cab aggregators like these were having no effect whatsoever on their travel needs.

They were still satisfied with the current transport services. Also, 32% of people took

no respond to their stand as to what their views on this topic were.

Response

Total no. of respondent

Ease of booking

61/102

Well behaved drivers

25/102

Cost effectiveness

46/102

variety of payment methods

29/102

Data Source: Primary Data A visibly high majority of respondents said that ease of booking was the most significant factor that led them to prefer On-demand cabs like Ola/Uber over the local

taxis. 1/4th of the respondents said the since these cabs were cheaper, they prefer travelling with it. This shows that consumers are more inclined towards a seamless experience rather than just saving money. 1/10th of the respondents were travelling

with these cabs since they have well trained and well-behaved drivers.

64

Response

Total no. of respondent

Strongly disagree

13/102

Disagree

20/102

Neutral

33/102

Agree

27/102

Strongly Agree

9/102

Data Source: Primary Data This explains that there no specific answer to this question as the results are quite

dispersed as people use cab service on different occasions different purpose and at different intervals so to be on top the need to provide effective service with lower

prices As some use it rarely and some once in month and some use it for daily commute.

65

Response

Total no. of respondent

Ola

45/102

Uber

45/102

Meru

12/102

Data Source: Primary Data The results are quite in favour of both the companies as 45 people open Ola first, and

other 45 people open uber first. This shows the customers are evenly distributed at

least in Mumbai. There are some people which prefer Meru cabs over Ola and Uber.

Response

Total no. of respondent

Ola

47/102

Uber

55/102

Data Source: Primary Data 66

On the basis of pricing, 55% of people choose uber because Uber provide cheap rates compared to Ola, but even Ola is giving a good competition to Uber as the results

show 47% the people choose Ola on the basis of Pricing.

Response

Total no. of respondent

Ola

48/102

Uber

54/102

Data Source: Primary Data This is one of the most important derivations from this study. How do the customers feel about its service, is one of the most important data for any company, Between the

two rivals, Ola is the most preferred, it shows that the driver training programs at Ola are really effective or the screening process is quite stringent, customers love the Ola way right from using the app, to complaint resolution, to the ride. Also, people believe

in Ola much than Uber because Ola is an Indian Brand and Uber is not.

67

Response

Total no. of respondent

Ola

20/102

Uber

14/102

Both

21/102

Never

47/102

Data Source: Primary Data There is no denying of the fact that there will always be some or the other bad

experience, which a customer may face. Rude behaviour of the driver, Surge pricing,

navigation issues, late arrivals, are often faced by customers. However, the number of cases should not be much. Ola had more cases of bad experience amongst the

respondents and that is alarming. Here, 46% of the respondents were happy with their trips and never had any bad experience while 20% of the respondents had faced such issues with both these companies.

Response

Total no. of respondent

Ola

26/102

Uber

36/102

Both

24/102 68

Never

16/102

Data Source: Primary Data Being a relatively new business model in a country like India, Uber and Ola both have a huge challenge to market their product. They have to be really innovative. As we

can see from the result people have very mixed opinions & perceptions about the

marketing campaign. As we know that Uber is a global giant and can spend a lot more in marketing than Ola, hence results show that more people are inclined towards Uber' s marketing.

Response

Total no. of respondent

The global giant: Uber

28/102

The made in India: Ola

45/102

Can't say

29/102

Data Source: Primary Data The people’s perception about the term success of this companies is also a varied

result as 44.1% of them prefer that Ola will flourish in the long run as it’s a Indian company and some of the rest feel that Uber flourish due to is quality service and

resonable pricinng.

69

Response

Total no. of respondent

Very Often

17/101

Often

15/101

Sometimes

31/101

Rarely

38/101

Data Source: Primary Data When we asked the consumer about how often they get the coupon codes we get a mixed response from them where majority of the customers said that they receive

coupons only sometimes. We will use this data for our hypothesis testing.

70

Response

Total no. of respondent

Yes

78/101

No

23/101

Data Source: Primary Data We asked this question just to cross check that whether the design of the app is

confusing or not, because very often what happens is when we add more features/services to the app it becomes complicated to understand for the consumer.

Here most of them said that the ui/design is not confusing which means Ola & Uber

have maintained good app design while offering more features / services.

Partner / Driver Survey

Response

Total no. of respondent

Company Offer

10/50

Through friends & family

21/50

Previous employer

3/50

Newspaper/television ads

16/50

Data Source: Primary Data Ever since Ola and Uber have launched, they have been marketing their business

proposals to car owners extensively. However, according to this survey, Word of 71

mouth has beaten any marketing campaign. The partner signups in both companies

were highest because of friend referrals and other through Newspaper/Television ads & company offers. So almost 42% of the respondents claimed that friend referrals got

them where they are!

Response

Total no. of respondent

Strongly Agree

10/50

Agree

21/50

Neutral

15/50

Disagree

3/50

Strongly Disagree

1/50

Data Source: Primary Data A majority of the respondents, about 62% of them, either agreed or strongly agreed that cab aggregators like Uber/Ola have raised their standard of living. Since these

companies have created an ideal platform for both drivers and consumers, it’s a win-

win-win! A very minor chunk of the respondents upto 30% claim to have had no change in their income levels, mainly because they were driving the cab for someone

else and upto 8% of respondents disagreed to the fact, maybe because their salary

practically never changed! Infact, their working hours got extended.

72

Response

Total no. of respondent

Convenience /door-to-door service 29/50 Affordable pricing

10/50

Well behaved drivers

7/50

Variety of cars available

4/50

Data Source: Primary Data Out of the 50 drivers interviewed, a majority of them said that customers preferred

cabs like Uber/Ola because it is very convenient to book such cabs. It does not even take one full minute to shoot up the app and book it and the cabs get arrived at your

door . Also, some drivers said that since these companies have well behaved drivers and their incentives are based on their service rating given by customers, drivers on

these platforms behave very good as compared to the rude local taxi operators and

other drivers opinion were affordable pricing could be a reason for customer to prefer cabs like Ola/Uber over normal taxis.

73

Response

Total no. of respondent

Strongly Ola (Trip based incentives)

19/50

Uber (Hourly based incentives)

13/50

Both are almost equal

18/50

Data Source: Primary Data Uber offers drivers a minimum guarantee for every hour they are online. If the driver does not earn that much money, which the company guarantees, then the

company reimburses him for the same. Ola on the other hand offers trip-based incentives. Here, for every 7 trips the company offers some amount as bonus over the normal revenue. The amount of incentives increases as the trips increase to 9 or 11 etc. Since the number of trips is dependent upon external factors like traffic,

bookings, monsoons.as per results almost 30-40% of drivers feel both the incentive structure are equal as per their conditions and many of the drivers prefer the Ola trip-

based incentives as it directly depends on their effort they put in and the extra incentives too.

74

Response

Total no. of respondent

Cash

30/50

payment via mobile wallets/credit

20/50

cards

Data Source: Primary Data Results are easy to interprete that drivers ave different aspects releated to the payment

methods some want it in cash and some are benefitted using paytm or online transfers

Response

Total no. of respondent

Yes

23/50

No

27/50

Data Source: Primary Data

75

Drivers have different view points as some get benefitted and some don’t some get more incentive during surge pricing and some feel they loose customer accuired as the prices are so high they next time think to take local transport over cabs and which will

create loss in future long run.

Response

Total no. of respondent

Yes

38/50

No

12/50

Data Source: Primary Data As we can see that 3 out of 4 people said that the new feature of rating customer is very important because let's face it, no one want's to work with the client who is rude

or arrogant or argue for no reason. This feature tells the driver about customer know even the driver can decide whether to accept the request or not.

76

Response

Total no. of respondent

Very Often

4/50

Often

12/50

Sometimes

22/50

Rarely

12/50

Data Source: Primary Data Since there is no way to cross-check whether the consumers rating is genuine or not many a times consumers randomly give the rating depending upon their mood says

24% of the drivers and partners associated with Ola/Uber. Also, 44% of the drivers have similar problems with the current rating system. Because of this feature, there

are many drivers suffering as their overall rating is affected.

77

Hypothesis Testing This research is focused on Ola and Uber users in Mumbai area and specifically targeted to working professionals. After literature review gaps have been identified and questionnaire has been designed to collect the data. Primary data for the study

was collected through online survey method, using a structured questionnaire which

was designed based on literature review. All the responded were from Mumbai and data was collected from December 2018 to March 2019. To full fill the Objectives

based on literature review following hypothesis and sub hypothesis have been

designed.

Testing Hypothesis 1: To understand the impact of age on choice of cab we did a chi square test, on the collected sample data. The data was collected from all the age group from Mumbai

working in different profession to avoid uncertainty or irregularities in data. The chi

square test was performed with 5% level of significance. From the result of the test we came to know that α is greater than 0.05, hence, the null hypothesis is accepted.

H01 -Age of customer does not have impact on Choice of cab  

Services

17-21 22-30 31-45

Age 45 & above Total

Total

Ola

Uber

Count

33

26

59

Expected Count

30.1

28.9

59.0

Count

13

12

25

Expected Count

12.7

12.3

25.0

Count

5

4

9

Expected Count

4.6

4.4

9.0

Count

1

8

9

Expected Count

4.6

4.4

9.0

Count

52

50

102

Expected Count

52.0

50.0

102.0

Note: The source of the data is primary information

Chi-Square Tests  

Value

df 78

Asymptotic Significance

(2-sided) Pearson Chi-

6.389a

3

.094

Likelihood Ratio

7.142

3

.067

N of Valid Cases

102

 

 

Square

a. 4 cells (50.0%) have expected count less than 5. The minimum

expected count is 4.41.

Testing Hypothesis 2: Along with age we also wanted to know that whether gender has impact on choice of cab service, i.e. whether male or female prefer ola/uber. As per the results from the testing we came to know that since the α value is less than

0.05, therefore we reject the null hypothesis and accept the alternative hypothesis and can conclude that gender does have significant impact on choice of cab

H12 -gender of customer does have impact on Choice of cab Gender

Services

Ola

Total

f

m

Count

33

19

52

Expected

27.0

25.0

52.0

Count

20

30

50

Expected

26.0

24.0

50.0

Count

53

49

102

Expected

53.0

49.0

102.0

Count

Uber

Count

Total

Count

Note: The source of the data is primary information 79

Chi-Square Tests  

Value

df

Asymptotic

Exact Sig.

Exact Sig.

Significance

(2-sided)

(1-sided)

(2-sided) Pearson Chi-Square

5.621a 1

.018

 

 

Continuity Correctionb

4.720

1

.030

 

 

Likelihood Ratio

5.673

1

.017

 

 

Fisher's Exact Test

 

 

 

.029

.015

N of Valid Cases

102

 

 

 

 

a. 0 cells (0.0%) have expected count less than 5. The minimum expected

count is 24.02.

b. Computed only for a 2x2 table

Testing Hypothesis 3: Here in the third Hypothesis we assumed that the Quality offered by these services is independent of the prices charged. Here also, we conducted Chi-Square test to verify the hypothesis. After, having a look at the results we can say that the value of alpha is

less than 0.05 therefore we reject the Null hypothesis.

H13 - quality of service does have impact on pricing of the cab

 

Pricing of cab preferred

Total

by customer Ola

Uber

Count

34

16

50

Service

Expected

27.9

22.1

50.0

preferred by

Count

23

29

52

29.1

22.9

52.0

57

45

102

57.0

45.0

102.0

Quality of

customer

Ola

Uber Count Expected

Count

Total

Count

80

Expected

Count

Note: Data collected is Primary Data

Chi-Square Tests  

Value

df Asymptotic

Exact Sig.

Significance (2-sided)

Exact Sig. (

1-sided)

(2-sided) Pearson Chi-Square

5.841a

1

.016

 

 

Continuity Correctionb

4.917

1

.027

 

 

Likelihood Ratio

5.907

1

.015

 

 

Fisher's Exact Test

 

 

 

.018

.013

N of Valid Cases

102

 

 

 

 

a. 0 cells (0.0%) have expected count less than 5. The minimum expected

count is 22.06.

b. Computed only for a 2x2 table

Testing Hypothesis 4: In the fourth Hypothesis we have tested the how independent is the frequency of getting coupons to the frequency of rides the customer takes. Here the value of alpha is greater than 0.05, hence we accept the null hypothesis

which states that frequency of getting the coupons is an independent event, which was quite surprising.

H04 -frequency of traveling via. these cabs do not have impact on frequency of

coupons How Often User get the coupons Often daily

Count

Rarely

Someti

Very

mes

Often

Total

2

4

3

3

12

2.0

4.5

3.8

1.8

12.0

81

Expected

Count

once a

Count

3

19

11

6

39

month

Expected

6.5

14.5

12.2

5.7

39.0

Count

once in

Count

5

2

5

3

15

How

three

Expected

2.5

5.6

4.7

2.2

15.0

Often

months

Count

User

Once/T

Count

6

7

7

1

21

uses

wice a

Expected

3.5

7.8

6.6

3.1

21.0

these

week

Count

services

rarely

Count

1

6

6

2

15

Expected

2.5

5.6

4.7

2.2

15.0

Count

17

38

32

15

102

Expected

17.0

38.0

32.0

15.0

102.0

Count

Total

Count

Note: Data collected is Primary Data

Chi-Square Tests

df

Value

Asymptotic Significance

(2-sided) Pearson Chi-

14.191a

12

.289

Likelihood Ratio

15.007

12

.241

N of Valid Cases

102

Square

a. 12 cells (60.0%) have expected count less than 5. The minimum expected count is 1

.76.

82

5. Conclusion As before, in olden time how taxi use to rule the market and had a monopoly after aggregator came they are getting to change their business or getting joined in this cab

aggregators model. Aggregator taxi services are having bright future in India and specifically in metropolitan cities where parking and long distance are big challenges

Ola or Uber are very useful to them as their half tension flews away and they travel tension free as this taxis are available at anytime and anywhere. This study tried to

identify the difference between consumers of two major organized taxi service players in India. This study may help the taxi service industry to design their marketing

strategies and design their customer relationship plans and improve their services and

pricing techniques as per given data analysis. Companies need to constantly be on

their toes and keep designing new packages and offers to allure the customers for long which at times result in a lot of cash burn. Therefore, it would not be that easy for

both the companies Ola and Uber to operate in such an environment. The company

need to improve where they are lacking such as in case of customer’s perception about safety and pricing. Most of the customers were pissed about the price hike

during rush hours and it is a deal breaker for them. Basically, the companies should convert the feedback into feed-forward to survive the competition. More detailed study may give a more authentic conclusion and can increase its impact on managerial

decisions. Also drivers feedback states they even don’t have much benefits, they want to raise their income as well as standard of living. From this research project we can conclude this aggregators already are doing success and in future will be doing much

more great business.

83

References Bibliography Bhalla, Mona; Rallan, Pallavi; Jain, Surya and Aman Chhajed (2018), “An Empirical

Study of the Indian Taxi Market-With a Brief Analysis of the Emerging Taxi

Aggregator Sector”, Shanlax International Journal of Commerce, Volume 6, Issue 1,

pp. 01-09. Bhowmik, Shuvayan (2017), “A Study on Feasibility and Impact of Radio Taxi and

App-Based Vehicle Model in Mumbai and Bangalore Market”, AADYA Journal of

Management and Technology, Volume 7, Issue 2, pp. 01-08.

Kumar, Kishore P. and Kumar, Ramesh N., (2016), “A Study on Factors influencing the Consumers in Selection of Cab Services”, International Journal of Social Science

and Humanities Research, Volume 4, Issue 3, pp. 557-561 Lu, C., Geng, W., & Wang, I. (2015). The Role of Self-Service Mobile Technologies in the Creation of Customer Travel Experiences. Technology Innovation Management Review, 24-32.

Pajaree Ackaradejruangsri (2015). “Insights on GrabTaxi: An Alternative Ride Service in Thailand”. Review of integrative business and economics research 4.3: 49-

61. Rahman, T. (2014). Organized sector radio taxi operator in Guwahati - A case study

on "Prime cab". International Journal of Advance and Innovative Research, 1 (1), 19-

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Ruchi Shukla, Ashish Chandra and Himanshu Jain (2017), OLA VS UBER: The Battle of Dominance. IOSR Journal of Business and Management (IOSR-JBM). e-

ISSN: 2278-487X. p-ISSN: 2319-7668 PP 73-78.

Sarita Prava Das, Dhaval Bhatt, Sailaja Path (2017), Transformation of Urban Transportation Strategic Perspective: A case of Uber technologies Inc. International

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Venkatesh, G. and Easaw, George (2015), “Measuring the Performance of Taxi Aggregator Service Supply Chain, SIBM Pune Research Journal, Volume 10,

December 2015, pp. 26-36.

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Appendix

Consumer Survey Name *

_________________________

Age * o 17-21 o 22-30 o 31-45 o 45 & above How do you come to know about Ola/Uber? *

o Friends and Family o Newspaper & television o Out of home Advertisement (Stickers on the cars / hording) o Other:____________________ Cab services like Ola and Uber have disrupted the local transport system in India,

how far do you agree? * o Strongly disagree o Disagree o Neutral o Agree o Strongly agree What is there reason that cabs like Ola/Uber are commonly preferred over local taxis?

 * 86

o Ease of booking o Well behaved drivers o Cost effectiveness o variety of payment methods o Other: For what purpose(s) do you use cabs services like Ola/Uber? * o travelling to and fro from parties o airport transfers o Festive occasions o Work/College o Other: _____________________

How often do you use cabs like Ola/Uber? *

o daily o Once/Twice a week o once a month o once in three months o rarely Which application do you open first, when you want to book a cab? *

o Ola o Uber o Meru o Other: _____________________ On the basis of pricing, what do you prefer? *

o Ola o Uber On the basis quality of service, what do you prefer? * 87

o Ola o Uber Have you had any bad experience with any of these companies? *

o Ola o Uber o Both o Never Which companies advertising/marketing campaigns do you like more *

o Ola o Uber o Both o None

In the longer run, which of the two do you think will flourish in Indian markets? *

o The global giant: Uber o The made in India: Ola o Can't say What do you feel about price hike/surge price during rush hours? *

_____________________

What do you feel about Uber eats / Ola foodpanda? *

_____________________ How often do you get coupons? *

o Very Often o Often o Sometimes o Rarely 88

Do you find the design of the Ola/ Uber app Confusing? *

o Yes o No Have you ever used Refer & Earn in Ola/Uber? *

o Yes o No Any Suggestion to improve the services of Ola/Uber

_____________________

Partner Driver Survey How did you come to know about this kind of business opportunity? *

o Company Offer o Through frieds & family o Previous employer o Newspaper/television ads Other: _____________________ How far do you think, that these companies have raised the standard of living of

partners/ drivers? *

o Strongly agree o Agree o Neutral o Disagree o Strongly disagree What is the most significant reason that the customers prefer cabs like Ola/Uber over normal taxis ? *

o Convenience /door-to-door service o Affordable pricing 89

o Well behaved drivers o Variety of cars available Which company's incentive structure is better?

o Ola (Trip based incentives) o Uber (Hourly based incentives) o Both are almost equal What kind of payment method do you preffer from customers? *

o Cash o payment via mobile wallets/credit cards

Do you benefit from the price hike/surge pricing during rush hours? *

o Yes o No Do you feel new feature of rating customer is important? *

o yes o No How often you get false rating from the customers? *

o Very Often o Often o Sometimes o Rarely Any Suggestion to improve the services of Ola/Uber?

_____________________

90

• BIBLOGRAPHY • WWW.GOOGLE.COM • WWW.QUICKINFO.COM • http://www.businessdictionary. com/definition/information.html • https://searchsqlserver.techtarget.com • https://en.oxforddictionaries.com • https://www.thesaurus.com