Do you ever wonder how about what is the history of Ola?
And what is the success story of Ola?
Because we do!!!
And we also have the answer.
We have created this blog to answer all of your questions!
In this blog, you will get to know some interesting facts, business and revenue models, marketing strategies, and OLA app features.
So if you want to know how you can create a successful app like OLA, go through this article.
Let’s dive right in…
Click here: To check out this complete step-by-step guide on how to build a taxi Booking App in 2023?
History of Ola Cab
It is the world’s leading cab-hailing Services Company started in 2011, headquartered in Bangalore.
The founders of the Ola cab mobile app are Ankit Bhati and Bhavish Aggarwal.
Aside from on-demand taxi services or car rental services, Ola also provides auto services that we can book within the same mobile app used to book cars.
The company got Startup of the year award in Economic Times Startup Awards 2015. In 2016, Ola introduced Ola play.
It has partnered with Microsoft, Apple Music, and Sony liv to give the topmost experience to its users. The business estimate is around $6 Million.
Ola has two different apps for one procedure; one is for a traveler to select a ride, and the other is for cabbies to take the requested ride.
Once a passenger picks the passage from their neighborhood, drivers nearby would get a notification on their app.
The driver accepts the ride, picks the passenger up from his location, and pays for the ride through cash or cashless alternatives at the end of the ride.
Ola encourages both cash and cashless payment opportunities with Ola money, credit, and debit cards.
Let’s have a look at the below statistics to know the worldwide market share of Ola Cab.
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Some Less Known Facts About Ola
- Ola originally began as Olatrip.com, a website that advanced package weekend trips. Bhavish Aggarwal, the CEO, used to give tour/travel packages to visitors at the Commonwealth Games in Delhi. The founders soon turned to personal transportation as it was a significant pain point and decided to start Ola Cabs (now Ola). Thus was born India’s first mobile app for transportation!
- Initially, OLA had a small office space of just 10 x 12 feet in Mumbai and since then it has grown tremendously.
- Bhavish did everything from shooting drivers to providing customer support, and Ankit handled to code for 48 hours straight. In Ola’s initial days, Bhavish had driven a car to drop a customer because the driver didn’t show up!
- Zero Cars – Bhavish, the company’s CEO, had pledged along with his wife never to own a car, and they have kept the promise to date. What can be a more reliable way to show loyalty towards your business concept?
- Fleet Of Cabs – Over past years, the number of cabs and drivers has increased substantially. Last updated in 2018, the total number of cabs on the Ola platform was 450,000. As of Feb ’20, the number of drivers enlisted on the forum is 1.5 million. This should give an idea of how extensive a fleet the company has.
- Logo – Ola’s first logo was not so simple that it is today. The old logo read ‘ Ola Cabs – Book Cabs and Car Rentals Online!’.
- Religion Is Not A Criteria- When hiring drivers, the company never questions the religion of drivers, and customers don’t have the liberty to inquire about the driver’s religion as well.
- Distance Covered – As published by Business Today, Ola measured 6 billion km of distance in 2019. The break-up of distance traveled by various travel options the company gave unveiled that Ola Outstation covered 366 million km across 10,000 destinations in the country. In comparison, Ola Bike covered 166 million km, and Ola Autos covered another 1200 million km. The company’s top bike partner traveled 38,289 km.
- Ola is recognized as India’s fastest startup to be on the list of unicorn clubs.
- The most common drivers registered on OLA are Sanjay, Suresh, Ramesh, Rajesh, and Santosh.
Business Model of Ola: How does Ola work?
- Firstly customers open the OLA app, which detects their current location via GPS.
- Then app shows numerous cabs available near them like mini, sedan, prime & other.
- Then customers are needed to enter their destination. Customers are shown various price estimations as per the cabs available.
- Customers can select the cabs as per their preferences.
- A request is then forwarded to the driver, and s/he is en route to the customer’s location.
- If the driver accepts the ride request, a confirmation notification is sent to the customer with the driver’s detail.
- The driver reaches the destination, picks up the customer from the meeting point, completes the trip, and collects the payment via various methods.
- Post-ride completion customer is asked to rate the driver by their ride experience, and the driver is asked to rate the customer.
Revenue Model: How does Ola make money?
Online cab booking service is an essential part of the Ola Business Model. So, this becomes the primary revenue-generating exercise of the company.
It charges X% commission, which ranges from 15-20%, on the total fare of the trip, which is based on multiple circumstances noted below:
- Base price: It is the flat charge that’s charged initially.
- The entire time of the trip: Total time starting from pick up to drop off is estimated while calculating the total fare. Calculation of the whole ride time is done in minutes.
- Waiting time: If you made the driver wait, then the waiting charges will be charged.
- Charge based on distance per km: It is imposed kilometer-wise and ranges from city to city based on the kind of cab booked.
- Demand for cabs: Demand for the cab also influences the fare imposed throughout that time. Ola raises the rate per km traveled. It’s done to boost revenue while the high demand for cabs.
- Booking fee: An advance fee is levied in case a cab is booked for later use.
- Amenity Fee: It is charged for the cabs that provide in-cab entertainment.
- Airport fee: Airport fee may be imposed in case of pickup or drop to the airport.
- Toll and parking fee: Toll and parking fees are also charged based on the toll junctions crossed and car parking, respectively.
- Cancellation Fee: Ola charges a reliable amount of cancellation fee if you cancel the ride.
- Service Tax: Service tax and other taxes are charged on the total cost of the trip.
Various advertisement instruments, such as pamphlets, brochures, etc., are distributed to travelers to promote multiple brands and products.
Live ads are also played for promotional objectives.
Ola imposes a commission from companies for such advertisements.
All those help the business in generating good returns.
Lately, Ola has launched the Ola credit card, which offers several awards to the customers. This step has been taken in cooperation with the State Bank of India and VISA.
It is also crucial in enabling the business to make good money by expanding its customer base via more personalized and profitable bonuses.
In an effort to expand, Ola started into the food delivery industry. Ola acquired FoodPanda to give competition with Swiggy, UberEats, and Zomato and enhance its profits.
This is, again, a very assuring attempt taken by the Ola team, which is also contributing to good ROI.
Just like Mobikwik, PayTM, phone, etc. Ola has further launched its wallet through which payments can easily be made to merchants or its cab services.
Noticing the increased dominance of digital payments, Ola money is doing a game-changer for the business model of Ola.
Ola purchases cars and rents them to the drivers. It is done to increase the loyalty of drivers towards Ola that also performs a crucial role in expanding the company’s revenues.
Ola has tied up with multiple companies for their business travels.
Ola imposes reduced rates on these corporates and benefits from the improved sales volume, which helps Old make a handsome amount of money in the long run.
Ola prime play
Ola provides personalized entertainment to the passengers, for which it imposes a convenience fee.
While traveling, Ola Prime Play ensures a more peaceful and funfilled experience for travelers who are willing to spend some extra amount. Hence it plays a crucial role in expanding the incomes of the company.
Marketing strategy of Ola
Let’s look at the marketing strategy selected by Ola to accomplish its purposes.
Treat the customer as a king
The client is the principal character of marketing.
Building consumer loyalty is the sole aim of any company because it leads to high revenues and a company’s growth.
Ola has arranged everything to sustain and enhance its customer base, from attending calls to providing desired services to the customers.
Providing personalized services has always been the core to the success of the business model.
This business design is the most profitable marketing approach selected by Ola.
The cost of Ola Minicabs is approximately similar to the auto fares. This concept was well-received by the clients and led to an improved consumer base.
These incorporate online means of advertisement. Ola started its first campaign on Facebook, remembered as the #chaloniklo battle.
This campaign was a tremendous breakthrough and led to its popularity. The amount of Ola app downloads significantly improved after this campaign.
Ola Boats during Chennai floods
Ola launched its ferry service throughout the Chennai floods. These were used both to transport relief material and saving people.
This action gave much praise on social networks and provided a boost to the company’s success.
Partnership with TVF
The Viral Fever (TVF) is one of the Indian online web series platforms with a considerable fan base.
This partnership has been profitable for both businesses because, now, they can acquire new clients from each other’s existing consumer base.
You have seen that Ola has used creative campaigns and actions to promote its marketing approach.
Check out: This informative step-by-step guide to find out about the features included in an app like Uber.
These policies are necessary because they lend assistance to the Business Model of Ola to grasp and expand its consumer base, eventually leading to its success.
Features Of Different Apps
There are mainly 3 types of apps
- Customer app
- Driver app
- Admin app
Customer App Features
The sign-in process needs to be like any other application. You can simply join in utilizing your email id/phone number along with a password of your choice.
Track a Ride
Ola offers its customers an option to track rides as soon as the booking by a driver is accepted.
Ola gives customers an estimate of fare once the pick-up and drop-off points have been entered on the app.
This button allows the client to connect with the driver if they wish to provide additional information about Ola cabs other than the pick-up location already entered in the application.
The passenger can add up to two locations additional than the end destination while booking the ride.
The passenger has the benefit of canceling the ride even after booking within a stipulated timeline.
Multiple Modes of Payment
The passengers can select from their dedicated offerings like Ola Money and Post-paid services and other regular channels like GPay, e-Wallet, Debit and Credit Cards, or even cash.
Driver Service History
Whenever passengers book a cab on the app, they can review the driver’s past services.
Track Service History
Passengers who use the app regularly can easily keep track of their ride history using this dedicated section.
Book Now Ride Later
Ola passengers have the option to schedule rides that can be booked for a future date.
To ensure safety while ride, all online cab booking apps must have a dedicated Panic Button.
Passengers can distinguish their regularly traveled destinations and label them according to their comfort.
It is a regular app feature that sends periodic updates to its users.
Drivers App Features
Editing Personal Profile
The driver version of the app must have a segment dedicated to entering their personal information and photographs.
Scheduling Their Driving Times
The driver application gives a feature that allows them to pick their service times.
The app should have an alert system every time an on-duty driver gets picked for a ride.
Connecting With The Customer
The app enables the chauffeur to call the prospective passenger through the app.
Once the driver gets informed of their next ride, the map itself determines the fastest and most economical route available to reach the pick-up location.
As a driver is alerted of a ride, there is a window to cancel the trip.
As the driver arrives at the customer’s location, the first 3 minutes are non-chargeable.
In this functionality, drivers are permitted during an ongoing trip to accept another ride request.
Drivers can get a basic overview of the request through a map view and reach that particular destination.
The app also enables the driver to accept a ride request towards a particular destination.
Admin Panel Features
The app’s Admin dashboard is the centralized platform by which customers receive real-time notifications of the availability of cabs in any specific area.
Cost & Surge Management
Admins can themself calculate surge pricing or takes into discounts, if applicable, on the passenger account throughout a particular time period.
Document Processing Tool
Driver data can be edited, updated, or even deleted on the admin panel.
The company requires a robust Driver Management system, which can be used through the admin panel dashboard.
The data creates through the millions of bookings getting through the app can be examined using the Analytics system
Over To You
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