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“Effects of OLA’s Entry in the Cab Business on the

Traditional Taxi Drivers”

Dissertation Submitted to the


D.Y. Patil Deemed to be University School of Management
In partial fulfilment of the requirements for the award of the
Degree of
BACHELORS OF BUSINESS ADMINISTRATION
Submitted by:
Sudhanshu Chandra
(BBA017294)

Submitted To
DR. VIDHYA KSHIRSAGAR
Assistant Professor
D.Y. Patil University
School of Management
CBD Belapur, Navi Mumbai
March 2019

1
“Effects of OLA’s Entry in the Cab Business on the
Traditional Taxi Drivers”

Dissertation Submitted to the


D.Y. Patil Deemed to be University School of Management
In partial fulfilment of the requirements for the award of the
Degree of
BACHELORS OF BUSINESS ADMINISTRATION
Submitted by:
Sudhanshu Chandra
(BBA017294)

Submitted To
DR. VIDHYA KSHIRSAGAR
Assistant Professor
D.Y. Patil University
School of Management
CBD Belapur, Navi Mumbai
March 2019

2
DECLARATION

I hereby declare that the dissertation “Effects of OLA’s entry in the cab business on
the traditional taxi drivers” submitted for the Full time BBA Degree at D.Y. Patil
University School of Management is my original work and the dissertation has not
formed the basis for the award of any degree, associate ship, fellowship or any other
similar titles.

I hereby declare that this report is purely my personal work in every form.

I hereby also declare that I have checked the data through the plagiarism software and
it has been found to be pure and true. I am solely responsible for any plagiarism that is
found in this dissertation report.

SIGNATURE OF THE STUDENT

PLACE: Navi Mumbai

DATE:

3
CERTIFICATE

This is to certify that the dissertation entitled “Effects of OLA’s entry in the cab
business on the traditional taxi drivers”

is the bona fide research work carried out by name, student of Full Time BBA, at
D.Y. Patil University School of Management during the year 2017- 2020, in partial
fulfilment of the requirements for the award of the Degree of Bachelors in Business
Management and that the dissertation has not formed the basis for the award
previously of any degree, diploma, associate ship, fellowship or any other similar title.

Prof. Dr. R. Gopal Dr. Vidhya Kshirsagar

Director & HOD Assistant Professor


D.Y. Patil University D.Y. Patil University
School of Management School of Management

Place: Navi Mumbai

Date:

4
ACKNOWLEDGEMENT

In the first place, I thank the D. Y. Patil University, School of Management, Navi
Mumbai for giving me an opportunity to work on this project. I would also like to
thank Dr. R. Gopal (Director & HOD) & Dr. Vidhya Kshirsagar (Assistant Professor)
D.Y. Patil University School of Management, Navi Mumbai for having given me their
valuable guidance for the project. Without her help it would have been impossible for
me to complete the project. I would be failing in my duty if I do not acknowledge
with a deep sense of gratitude the sacrifices made by my parents and thus have helped
me in completing the project work successfully.

SIGNATURE OF THE STUDENT

PLACE: Navi Mumbai

DATE:

5
TABLE OF CONTENT

SR.NO. TOPIC PG.NO.


A. LIST OF FIGURES 07
EXECUTIVE SUMMARY 08
1. INTRODUCTION 09

2. OBJECTIVE OF THE STUDY 13


2.1 IMPORTANCE AND RELEVANCE OF THE STUDY 15
2.2 SCOPE OF THE STUDY 16
2.3 SCOPE OF OLA 17
3. REVIEW OF LITERATURE 18
4. RESEARCH METHODOLOGY 25
4.1 DATA COLLECTION METHODS 27

4.2 SAMPLING METHOD 28


4.3 LIMITATION OF THE STUDY 29
5 ABOUT INDUSTRY 31
5.1 ABOUT OLA CABS 39
6 DATA ANALYSIS AND INTERPRETATION 47
7 FINDINGS OF THE STUDY 64
8 RECOMMENDATIONS AND SUGGESTION 66
9 CONCLUSION 69
10 REFERENCE SECTION 71
10.1 WEBLIOGRAPHY 72
10.2 QUESTIONNAIRE 74

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A. LIST OF FIGURES

FIGURE NUMBER FIGURE TITLE PAGE NUMBER


1.1 OLA AD 10
1.2 OLA LOGO 11
1.3 OLA AUTO AD 12
5.1 KAALI-PEELI TAXIS 37
5.2 OLA CABS LINE UP 38
5.3 OLA APPLICATION 40
5.4 PROTEST AGAINST OLA 44

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EXECUTIVE SUMMARY

The vision behind Ola Cabs is to give bother free, solid and innovative and effective
vehicle rental support for Indian population. In a profoundly divided and exceedingly
eccentric market of taxi services, there is a noteworthy lack of simple and agreeable
on-ground choices for transportation, be it inside the city outside.

They run on a pay-for-performance model. OLA cabs charges a commission in


whatever business they make. They also get access to a innovative technology
platform. OLA charges taxi drivers a little fee.

Bhavish Agarwal, the co-founder and Chief Executive Officer of Ola cabs, portrays
Ola cabs as an innovation firm instead of a taxi service firm. One of his desire is to
almost certainly deliver a taxi within 20 minutes of the booking . For this, the
organization is making utilization of data analytics, with the goal that they can
estimate interest for its administrations consistently. In light of this information
examination they expect to be delivering taxis within 20 minutes of booking. At
present it is around 30-35 minutes.

The Indian radio taxi showcase alone is placed anyplace between $6-$9 billion dollars
by various estimates, and is anticipated to develop at 17-20% every year. All the more
significantly, the organised taxi business is as yet little when contrasted with rest of
the taxi business in India; it comprises just 4-5% of the market regarding sheer
number of vehicles. The rest is by administrators who own fleet of 2-50 vehicles and
ordinarily have a nearness in 1 or 2 urban areas.

Ola's market is sufficiently huge in light of the fact that India's rate of vehicle
proprietorship is low to 41 for every 1000 individuals and positions 128th worldwide
and along these lines Ola organization has a solid conviction that there is an open
door for populace to take a jump in car possession by and large and rather depend on
booking administrations like Ola taxis. The number of inhabitants in India is 1.2
billion which is sufficiently vast for Ola organization to catch the market. It is
evaluated that the radio taxi advertise in India is $6-9 billion dollars developing at 17-
20%. It is additionally assessed that the quantity of taxicabs in the sorted out area will
achieve 30,000 by 2017. The whole ground transportation industry in India is kept
running in a hazy, wasteful and specially appointed way.

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CHAPTER 1

INTRODUCTION

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The Transportation industry, Transport is be considered a significant part of India's
economy but it is not as good as compared with international standards. India has
comparatively low GDP per capita that means that the access to transport in India has
not been even, Also railways deliver a very important way of travelling across India,
commuting 18 million people every 24-hours.

Public transportation is still the main mode of transportation for most of the
population in India, And the public transportation systems of India are among the
maximum used transportation system across the globe and also the rail network of
India is the 4th longest, transporting 8,223 million travellers and more than 970
million tonnes of cargo yearly, as of 2012.

Vehicle population in India is comparatively low than the rest of the world, with only
24.86 million four wheelers on the nation's roads. The number of two-wheelers like
motorbikes and scooter is significantly higher at 132.45 million. In entirety, about 20
per cent families have two wheelers while only 4.8 percent of families in India have
cars/jeeps/vans as per 2011 Census. Despite this, the number of deaths caused by road
accidents is between the highest in the world and is still getting accumulated. The
automobile industry in India is quickly growing with an annual production of over 4.5
million vehicles right now, with an annual growth rate of 10.4% and car volume is
predictable to rise significantly in the future.

OLA MICRO ADVERTISMENT FIG 1.1

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Ola cabs:

OLA LOGO FIG 1.2

ANI Technologies Pvt. Ltd, is working under the brand name of Ola, which is an
Indian online taxi service network company. Ola was established as an online cab
service in Mumbai, but is now founded in Bengaluru. As of September 2014, Ola was
estimated at $5.3 billion.

It was established on 3rd December, 2010 by Bhavish Aggarwal who is the current
CEO of Ola and Ankit Bhati. As of 2014, Ola Cabs had long-drawn-out to a network
of more than 30,00,00 cars across 105 cities. In November 2014, the company
extended to introduce auto rickshaws on a trial basis in Bengaluru. After the
preliminary stage, Ola Auto stretched out to different urban areas like Delhi, Pune,
Mumbai, Chennai, Hyderabad and Kolkata beginning December, 2014. In Dec 2015,
Ola presented its auto benefits in Indore, Chandigarh, Guwahati and Jaipur
Visakhapatnam. Ola was esteemed at $5.1 billion as of Sept 2015.

Ola offers different types of taxi services ranging from economic to luxury travel. The
taxis are reserved through a smartphone application. This taxi service ropes in both
cash and even cashless payment options with Ola money. It receives a regular
booking of over 130,000 bookings every day and holds 61% of the market share in
India. In November, 2014, Ola also started the app-based booking of auto rickshaw in
Pune, Bengaluru and few other cities in India.

Ola Cabs has set goal of developing micro free enterprise and skilling 40 lakh drivers
by 2019. Ola said as part of this new step taken by them, they will work closely with
the State’s Ability Development Department in providing vital preparation for

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infrastructure, utilities and knowledge outline that will ensure an improved
employment situation for the youth of Madhya Pradesh.

Ola has considered increasing its ride-sharing idea to auto rickshaws and even kali-
peelis which run on streets of Mumbai. Ola Cabs also plans to add the feature of Ola
Subscriptions and outstation. Ola Rentals which was hurled in August of 2018 allows
people to rent cabs with hourly prices across Ola prime, Ola lux and Ola Mini. Ola
had introduced its cab sharing feature in 2017, which is alike to Uber Pool.

OLA AUTO ADVERTISMENT FIG 1.3

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CHAPTER 2

OBJECTIVE OF STUDY

13
 To study the effect of Ola’s entry into the cab business
 To study how Ola cabs, operate successfully
 To study how they are keeping their customers satisfied
 To study the consumer perception towards safety of Ola

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2.1 IMPORTANCE & RELEVANCE OF THE STUDY OVERVIEW

The results obtained though the project will show how Ola’s entry effected the
traditional taxi drivers. The study would show us why customers prefer using Ola
cabs over the kali-peeli taxis.

The study would help the consumers who are using or interested in using the taxi
service provided by the company. The study would help them to gain knowledge
about the company’s working culture.

The study would help the students, researchers as a piece for reference purpose for
their project or as a base for research.

The study would give us an idea of what step were taken by the company to capture
the market and gain maximum customer of the market.

The study would also help the company to get data that, what are the reasons that the
customers are using the cab services and what are the reasons that the non-user prefer
to use the other cab services.

The study would show that how traditional kali-peeli taxi drivers have lost their
business because of the entry of Ola cabs in the market with its attractive business
model.

The study would show the consumer’s perception towards safety of Ola cabs and how
much are they satisfied by the steps taken by Ola towards the safety of the consumers.

The outcome of the study will show how the kaali-peeli taxi drivers reacted to the
entry and progress of the companies (OLA).

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2.2 SCOPE OF STUDY

 All the data collected is only from the area of Navi Mumbai, this is due to the
short time frame and limited resources.
 All the data presented might not be accurate due to the lack of complete
information in hand and lack of knowledge.
 All the possible data is provided but still if anything is excluded is due to the
lack of complete information and knowledge.
 Information regarding the industry (Cab business), company (OLA) and the
customers is been included in the project report.

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1.3 SCOPE OF OLA

Not just has Ola been producing collusions with organizations like Google, Airtel and
Zomato, it has been going into key associations with different Government divisions,
including Airport Authority of India (AAI) and Indian Railways.

The dispatch of India's first multi-modular electric vehicle venture on the Ola
application, with 200 or more electric vehicles crosswise over taxis, transports and
auto rickshaws in Nagpur nearby a vigorous foundation of charging stations is a key
achievement in our voyage towards maintainable portability," an Ola representative
had told ET. The organization is relied upon to take off comparable projects in
different urban communities going ahead.

These application based private taxi organizations have developed as a convincing


option in contrast to the state-possessed 'kaali peeli' taxis. Their 24*7 administrations
are a major preferred standpoint for working experts, specifically. The part all in all,
today, is a multi-billion-dollar industry working in a few Indian urban communities,
yet not without a lot of hiccups. Such administrations have gone under expanding
examination and government guideline. This has made many inquiries their future in
the nation.

Ola intends to dispatch in 50 urban communities with prime spotlight on top of the
line European and Gulf markets. Before long it intends to dispatch in Netherlands. Its
capital, Amsterdam, is a focal area for taking into account the business sectors in
Central, Northern and Eastern Europe and even North Africa. Aside from Uber, Ola
will contend with Taxify which is Europe's driving ride-sharing stage and has
transport activities crosswise over 25 nations.

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CHAPTER 3

REVIEW OF LITERATURE

18
 Urmi Bhattacheryya in her article, with title “In the Times of Uber and Ola,
How Are the Kaali-Peeli Taxis Accountability!?” printed on May 26, 2015,
has labelled that Smart phones, an amazing device and which has brought the
world at our fingertips. Similar is the situation with the kali-peeli taxis at the
Nizamuddin station. The cab drivers are tired of waiting for their lost
customers. This is because of their rivals or better competitors the ‘Ola ‘cabs
who are taking away their loyal customers. The actual reason is the fare
difference Ola has, on one hand charges Rs.6/km whereas our traditional taxi
charge Rs.12 to Rs.14/km.

 Dipavali Hazra in her article, with title “Traditional taxis struggle in the time
of Uber, Ola” published on 23 April, 2016, has said regarding App based
aggregators such as Ola and Uber are taking over the transport business from
the kaali-peeli taxis and also many small-time business firms. They are
gathering and drawing attention of the consumers by their easy to call and
minimum fares. The Delhi government on the contrary were against the
aggregators rapidly hiking their base prices. Apart from that the local
businessmen are quite agitated as they (the aggregators) are taking away their
point to point cab service business.

 Aarefa Johari in her article, with title “Imperfect rivalry!? How the taxi
industry UBER and OLA are killing livelihoods of Mumbai's auto and taxi
drivers” published on 24 April 2016. Has described the conviction regarding
Ola and Uber are having an edge over the kali – peelis because of Ola’s more
comfort and cheaper services and also ready for providing long distance
booking. The kali peelis are having a hard time surviving on Mumbai roads.
They hike prices of the base fare to keep up with the inflation. But this year it
seems difficult as they are anxious of losing their already decreasing
customers. They are in a confusion whether to hike prices or not. Though the
hike is proclaimed to be Re.1 over the existing fare it’s difficult for the cab
drivers and businessmen to shake away the fear of losing more customers.

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 JUBIN MEHTA in his article, with title “What is the impact of Ola and Uber
on transport in urban Indian megalopolises?” Printed on 7September 2016,
consumes stated that Ola and Uber are having a monopoly in the
transportation industry. The kali peelis are having a tough time to actually firm
their root which are now slowly removed by this on finger counterparts. The
minimal distance business or private taxi fares are losing their position in the
industry thanks to the aggregators. The government driven vehicles on the
other hand are least affected as profit is not their main motive. The large
distance monopoly is thus with the aggregators or the government buses
relying on the destination chosen. The only ones heavily affected are the
private auto waalas or taxi drivers.

 Somit Sen in his article, with title“50% of Mumbai's kaali-peeli taxis may
migrate to Ola and Uber” published on Oct 19 2016 has mentioned that
aggregators are stealing the business from the taxis. Because of which 50 % of
the cab drivers are turning towards aggregators for driving options. As the
result of this migration the private businessmen and taxi driver community has
reduced. The aggregators are terribly affecting the business because of lower
fares. The migration is the outcome of less stability. This also helps the drivers
to sort fuel issues. In the year 2014 about 3000 taxi drivers migrated to
aggregators.

 Varun Chirrumammila in his article, with title “Kaali-peeli or radio cab?


Online survey checks what commuters prefer” published on August 29 2016,
as he perfectly wrote that Ola and Uber are now the leading business in
transportation industry. This led to the reduction in the existence of the very
‘kali peeli’ taxis which once ruled the roads in Mumbai. This in turn sparked
the outburst among the taxi drivers. They turned to their only resort that is
objection against the aggregators. The drivers claim that they are being
snatched away of their passengers. So, the petition for banning the aggregators
was proposed. The drivers or the private small-time time businessmen stated

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that the aggregators operate on an unrealistic base price and only possible
when they are backed up by any black money.

 Mohul Ghosh in his article, with title “35,000+ Mumbai Kaali-Peeli Cabs
Take on Uber/Ola With Their Own App Called 9211” published on January 9
2016, has mentioned that With Ola and Uber ahead in the course of cab
industry the oldie kali peeli owners thought of leading the brigade in their own
turf. In the world of technology-based industries there are two options left for
any business i.e. either adapt or perish. Adaption is good but another way of
surviving is being logger heads and going head on with the new era leaders.
The kaali-peeli taxi drivers did the same. Similar to that of Ola and Uber the
taxi drivers started their own app known as 9211 where the nearest taxi, online
payment and a lot of other features are added. The app organised taxi drivers
are about 35000 in number out which 2500 have migrated to the aggregator’s
scheme. The taxis now ply on the government approved fares. The fares are
Rs21 per 1.5 kilometre.

 Sanjay Nayak in his article, with title “Black and yellow taxi to go on strike
against Uber and Ola” published on January 21 2016, has said that A
drowning man catches the straw becomes a real time phrase for the kaali-peeli
taxi drivers. The so called “un realistic” fare of the aggregators has been a
major reason to strike a blow on the taxi drivers. Their business has decreased
drastically in the past few years and is supposed to decrease furthermore.
Therefore, as a step to remain in the race of transportation industry they have
decided to give 10% to 25% discount on the meter reading. This not only
grabs the attention of the clients but also helpful for bringing the kali peeli
back in business.

 Pradeep Patil on his article, with title “Black and yellow taxi to go on strike
against Uber and Ola” Published on September 20, 2016 has stated that “Old
is gold” as it says but it is not true for many of the present scenarios. Take for

21
example the black – yellow taxis or lovingly called as kaali- peeli, in recent
time they have lost majority of their business to the aggregators or on call cab
services. The people ask about change and the change is here. The kaali-peelis
which once ruled the metropolitan roads are nowhere to be seen now. The
reasons for kaali-peelis decline are many to mention. The base fare, the time
gap, the comfort and also safety.
 Sanjay Gosh on his article, with title “Ola, uber make hay minus yellow taxis”
published on Friday, June 12 2015 has mentioned that as the transport market
is varied so is the mode of transport. Ola and Uber are now leading the
business. The response the aggregators got is overwhelming as in a short
period of time they actually turned the tables from the kaali-peeli taxis to their
side. This led to the fall of kaali-peelis. Instead of striving hard for survival
and opt for changes in the field the taxi unions prefer holding strikes against
the on -call cabs. This in turn is leading to their loss as the aggregators does
not have any competitors then. The demands of the unions are to make the on -
call aggregators function like them. But this kaali-peelis according to surveys
when given opportunity tend to go for demanding more than usual fare in
order to make profits this on other hand has benefitted the aggregators.

 Omkar Patil on his article, with title “Ola, uber Cabs have a flourishing
occupational in Kolkata” Published on August 12, 2015 has stated that the
two loggerheads Ola, Uber and the once queen of the roads the kaali-peeli face
a turmoil in Kolkata. On one hand there is Ola which is punctual, has quality
drivers, has standard of comfort and most of all is cheaper than its counterparts
and on the other hand there is the “old queen” taxi which lacks quality drivers,
no comfort and nearly double base rates. They end up protesting, going on
strikes, ill behaving and meter tampering in order to gain upper edge over the
aggregators. They end up losing business to the better of AC cabs. The cab
drivers are therefore gearing up for migrating to their counterparts. The
genuine reasons are that on call cabs earn better, are safer, and also they don’t
suffer in the scorching heat because of AC’s available in each one of them.
This ends up lesser permits for regular taxis and more for that of the
aggregators.

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 FP Staff on their article, with title “Mumbai black and yellow taxis go off
roads again difficult ban on Uber, Ola” published on September 022015 there
are disturbances amongst the taxi union and the aggregators in recent time.
The taxi unions claim that the aggregators or Ola and Uber have stolen their
market. They also claim that it is not possible for any transporting body to
charge the base fare so below the par and also have gone to the extent of
claiming the use of black money to run this service. To curb this taxi unions,
tend to protest and go on strike. This on the other hand benefits the
aggregators as they does not have any competitors on the particular day. This
in turn also disrupts the transport system and is severely affecting everyday
commute. The layman is the one who suffers a lot in the end and end up losing
his cool at the end of the day.

 THE HANS INDIA on their article, with title “A dead-end for old-style taxi cab
drivers?” Printed on July 04, 2016 “Lack a ride book an Ola” this statement
has really caused the aggregators to rule the industry. Who could have
imagined that once a start-up idea can now lead the country’s transport
market? Low fare, well behaved drivers, safer for female customers, time
conscious what else does a transport company want to maintain the edge. This
time however is chaotic and troublesome for the kaali-peeli taxi drivers. They
are not getting any customer and can hardly satisfy their daily needs. They end
up selling their taxis for another option such as autos which gives better
stability than the in loss taxis. Many tend to link the aggregators as they
provide job security, and a decent monthly breakthrough.

 Omkar Phatak on his article, with title “Kaali-peelis want Ola, Uber out”
Published on JUNE 22, 2016Protests are the easiest way to ask the
government to fulfil the demands. This was the way chosen by the taxi union

23
of Mumbai to pressurize the government to satisfy their demands. The protest
was actually against their counterparts the Ola and Uber. As per the kaali-peeli
taxi drivers they are stolen of their daily bread by this online or on finger
aggregators. They demand to ban the very own existence of the aggregators.
Threats to intensify the protest are in talks. The Ola and Uber are by default
profited by this step of the taxi union. This has led to a huge disappointment in
the daily commuters.

 A review by Mumbai GrahakPanchayat (MGP) demonstrates that a huge 94%


of suburbanites feel irritated by refusal of conventional taxi and auto drivers,
while a walloping 80% are of the supposition that application based taxi
aggregators offer better and increasingly advantageous alternatives for
transportation. Given expanding traffic hardships, there is a huge client
fragment which has moved or will move towards taxi utilization because of
extra solace of escort driven vehicle without paying out for driver‟s pay. Out
of the 76,169 suburbanites who took part in this overview, 47% trust the
passages charged by Ola and Uber are less expensive than different methods
of transport. This really remains constant given the other recreation benefits
that join the administrations of these taxi aggregators.

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CHAPTER 4

RESEARCH METHODOLOGY

25
The study is done on the bases of descriptive research design. This is because the
subject is being observed in a completely natural and unaffected natural situation.

The research design used in this project is descriptive research design. Descriptive
research is a study considered to represent the participants in a precise way. In a
simpler manner, descriptive research is all about defining people who take part in the
study.

The reasons for choosing this research design are –

· One of the main advantages of descriptive research is that fact that it uses
quantitative as well as qualitative data in order to find the solution to whatever is
being studied.

· With this in mind, it enables a broader view of an issue as opposed to strict numbers
and figures which can only account on facts other than experiences.

· One of the major purposes of descriptive research is to look into every form of data
that is possible.

· While using descriptive research people are able to gather findings from all forms of
data such as personal accounts, case studies or observations.

SAMPLE SIZE: -

The Sample Size of the study is 35.

26
4.1 DATA COLLECTION METHOD

 The research includes both primary and secondary data, I have used
questionnaire to collect primary data from the samples. I have used newspaper
article, social media and magazines to collect secondary data.

 Primary data is been collected through a survey using a questionnaire. The


questionnaire asks questions to the samples about their preference, mobility
and competition against the traditional taxi drivers.

27
4.2 SAMPLING METHOD

Convenient sampling is followed because Convenience sampling is very easy to carry


out with few rules governing how the sample should be composed. This allows you to
attain the example size you want in a comparatively fast and cheap way.

With the suitability sampling method, the survey can be led in a short distance of
time.

The samples are selected through selective sampling method. The research is
conducted within the boundary of the Navi Mumbai region. Therefore, the samples
are picked up from the population available in the areas within Navi Mumbai.

The samples are not picked up on any attribute or characteristic basis instead there are
just on a selective basis. The people who are known and reachable are taken as
samples for the study.

28
4.3 LIMITATION OF THE STUDY

o All the data collected is only from the area of Navi Mumbai, this is due to the
short time frame and limited resources.

o All the data presented might not be accurate due to the lack of complete
information in hand and lack of knowledge.

o All the possible data is provided but still if anything is excluded is due to the lack
of complete information and knowledge.

o The respondent maybe casual while answering the questionnaire

o The samples are selected through selective sampling method. The research is
conducted within the boundary of the Navi Mumbai region. Therefore, the
samples are picked up from the population available in the areas within Navi
Mumbai.

o The samples are not picked up on any attribute or characteristic basis instead there
are just on a selective basis. The people who are known and reachable are taken as
samples for the study.

o This can lessen the amount of time required to search for appropriate samples that
is, those individuals that meet the selection criteria needed for your sample.

o The potential samples (individuals or organisations) are expected to be committed


to take part in the study, which can help in improving attendance, and greater
chances to provide more information about the topic being studied in the research.

o Selective sampling saves money and efforts. It is flexible and meets numerous
needs and interests. It allows researchers to select a sample based on the topic of
the study and knowledge of a people

29
o The primary objective is to produce a sample that is representative of a particular
available population. This is done by using the researcher’s proficient knowledge
of the population and choosing a sample of elements in a non-random order.

30
CHAPTER 5

ABOUT THE INDUSTRY

31
P-based taxicab aggregators are border out traditional taxi facilities and other small-
time companies from the commercial, especially decrease the point-to-point services
for which clienteles prefer the expediency of an Ola or Uber which is obtainable at the
click of a button at modest prices. Softbank Corp, an investor in Ola cabs, revealed in
its earnings performance for its economic year on 10 May 2015 that the joint market
share of Ola and Taxi for sure was 70%, while Meru was at 13% and Uber was at 5%.
The rest was busy by all other taxi companies.India saw the introduction of one of the
biggest problematic plan of action known as Taxi Aggregators with the dispatch of
Ola in 2010, Taxi For Sure in 2011 and Uber in 2013. Taxi Aggregators are those
organizations who configuration, claim and oversee Web-based programming
application, and by methods for such application and a smartphone, empower a client
needing a taxi to associate with people giving taxi administration under the brand
name of that aggregator. Starting at 2017, the Indian taxi showcase is a $13 – 15
Billion industry, with $1.4 Billion having a place with the composed taxi business.

The market volume is in excess of 2 million rides for each day however the
income/ride is among the most reduced on the planet. For instance, in 2017, Uber’s
India business was worth ~$2 Billion regarding booking value, which is under 5% of
its US business. In 2018, it is gauged that the on-request taxi service estimate in India
at $XX Million developing at YY% till 2023.

“Our business for the short drive has been diminished since the landing of radio
taxicabs like Meru taxis, which was shadowed by the opening of metro in Delhi and
now the passage of the taxi aggregators” says Balwan Singh, who runs Shubham taxi
cab services in Mayur Vihar. His cabs typically take travellers to the airport and
railway stations. For these and the occasional local travel bookings, the fare is
emotional on the basis of the number of times the car is hired for. The number of
kilometres voyaged decides the fare for terminuses out of station. A few of Balwan
Singh’s drivers too have infrequently switched over to the taxi aggregator services,
haggard by the higher pay and less hours. They may be able to hike their average
monthly salary of Rs 10,000-11,000 to Rs 24,000, rendering to Balwan Singh. Some
others have also accepted their own cars and are successively their own commercial,
“which is a good thing”, Singh says.

32
Business is not good, a taxi cab worker in North Delhi admits, due to the
overwhelming competition. He has joined two of his boys with Ola cabs because his
cabs were not doing business. Functioning on a non-commercial licence, his
commercial licence has also received a blow from the additional phase of the current
road regulatory system in Delhi. He has five cabs. In detail, he has to deny clients the
service although calls are weighty for outings. We don’t have the opposite number for
today, he says.

There are three types of minicabs plying on societies — creamy top “AC and non-
AC”, receiver cab, cheap radio cab, and aggregators like Ola and Uber. Separately
from these, there is a piece of operators who use clandestinely owned vehicles, which
is prohibited as per the Motor Vehicles Act. Other operatives have been luckier during
this phase. Hardeep Singh, who owns Chandigarh Taxicab service from GK 1 in New
Delhi, says there have been a better number of booking requirements for local travel
during the period. Though, for point-to-point services on a regular day, business has
taken a beating for this worker who owns a fleet of 14 cars. He has mainly company
clients with whom the fares are fixed on a one-on-one dealing and his motorists earn
an average of Rs. 16,000 to 20,000 per month.

Ola is, sue handouts to their transports to bait them away from our productions. But
once they have control, the enticements will also end. They will exploit the clienteles
the way they did recently, cumulative their prices at peak time once the odd and even
rule was realised. Says Hardeep. Ola and Uber had originated underneath fire from
the Delhi consecutively for climbing fares up to four-five times when the road
controlling scheme was executed. The company’s deferred surge pricing — alleging
higher fares when the petition is high and supply is low — briefly, while the odd-even
structure is underway.

While surge pricing itself is not illegal, the interrogation is which group of vehicles do
cabs allied with taxi aggregators come under. Presently, the government-regulated
charges for a non-AC yellow top cab is Rs 13 per km and for an air habituated cab it
is Rs 15 per km. Fares for radio taxis have been capped at Rs 24 per km, while for
reduced radio taxis, it is Rs 12 per km. Time and again, the Delhi government has
arrived into lawsuit with Uber and Ola, trying to get them to agree to a certain amount
of directive that taxi operators in this city are governed by. The corporations,

33
however, argue that they are knowledge companies, and the principles that the
management frames for them should not throttle the invention that their business
model brings in. Aggregators like Uber face problems in all nations since they are not
guided by the local Acts governing motorized vehicles.

Yet they embellishment because they attract people claiming a low base fare which
often increases due to other levies. Both the taxi greeting services’ bottommost
charges are about Rs 7-8 per km, but add to this the variable “ride time rate”, which
rendering to reports is an supplementary charge depending upon the travel time, and
other taxes (service tax, education cess), the operative charges even without surge
rates is sometimes similar to the fare charged by other public transport services. The
already present kaali-peeli cabs have not managed well either, but they too are
drawing through on income from ferrying customers to and from the airport or
railway positions. Some, like Jaswinder Singh give administration to five-star inns in
the city. Situated outside Crowner Plaza Guesthouse in Mayur Vihar, Jaswinder
derelucidates, “We get and drop organizations at the lodging and charge them
presenting to an fare chart that was prepared by the inn’s boss. We likewise ship the
staff and charge Rs 12/km.”

Six men who have their own vehicles manage the cost of administration to the hotel
here. The hotel puts them up in its rooms, has preparations for their meals and allows
them to park their cars in the garage immediate, but their income comes solely from
the customers, who are guests at the hotel, and irregularly from the hotel staff.
Traditional radio cabs have temporarily diversified their amenities. Carson rent chief
R.K. Vij says, “(Our Company) operates in Corporate, Limo and Airport services and
Myles is a self-drive provision, besides point-to-point taxi amenities which are
wrought under Easy Cabs brand. We are a profitable company established over the
last 15 spans with market leadership in the car rental business and are building a very
stirring self-drive/car sharing business which has huge growth potential in India.”
“Therefore, for greater part of our occupational, we do not compete with Ola/Uber,”
he adds.

He wasn’t proximately convinced, though. When Aggarwal first advanced Mittal in


2012, the angel depositor had dismissed the occupational plan, saying the odds were

34
stacked against the originators as the personal travel market in India was largely
conquered by the government and unions. And the prepared cab market was led by
radio taxi amenities like TAB cab, Easy Cabs, Meru and Mega Cabs, which had
company-owned and licensed fleet, unlike the marketplace model that was projected
by Ola. In spite of diminishing the application the first run through, Mittal and related
angel investor Rehan Yar Khan chose to investigate the business. Mittal met
Aggarwal a second time. Furthermore, this period, he was in. “For me, it was about
helping Bhavish. I knew he and Ankit would walk the talk. In the event that things
don’t work out, they will make something different yet they will thrive,” he says.
Mittal lingers to be invested in Ola and is sitting on “overpriced” returns (his peak so
far, though unrealised).

Ola’s creators know that gaining investor sureness is a by-product of comprehending


the vision of building movement for a billion Indians. But their business vision, so
clear now, did not evolve immediate. Neither did the investor dollars. In datum, for
the IIT Bombay graduates, it all ongoing with less than Rs 17,000 in Aggarwal’s bank
interpretation and a tight smack of let-down.

The business bug bit Aggarwal in 2010, when he was occupied as a coder for
Microsoft India in New Delhi. In August that year, steadied with savings of about Rs
1 lakh, he underway olatrip.com, a trip development firm offering weekend breakout
tours around Delhi. Over the next five months, Aggarwal could not sell a single trip.
Customers could arrange hotels for themselves but what they really needed was a
vehicle to take them to the limit, he realised. This petition was a hint of the possible
for cabs. But, says Aggarwal, “I had no money, no co-founder (Bhati, who was doing
his Masters, amalgamated in December) and I had no invention. Commonwealth
Games were on at that while and I would go and dispense brochures (for olatrip.com)
external the stadia. I had nothing to lose… it was not disheartening or demoralising.”
In the process, Aggarwal had bushed his savings and was left with less than Rs 15,000
in his bank account. In January 2012, he bit the cannonball.

35
Along with Bhati, heron-going Ola cabs, an online taxi combination firm, with
actions only in Mumbai. Moving to India’s economic capital was not a tough
conclusion for Aggarwal because he knew the city improved (both he and Bhati had
graduated from IIT Bombay); also his girlfriend lived there! Neither was starting a
new venture proximately after the failure of the first one a problem: They whispered
they had nothing to lose. I was 24 when I started. I had a girlfriend, but I wasn’t
nuptial. I had no money, so there was no jeopardy of losing it, he puns, sitting in his
plush discussion room in the Ola cranium office trendy Bengaluru. (They loosened
from Mumbai in 2011.)

Originally, Aggarwal survived on the three praise cards that he had from his
Microsoft days—he consumed two years with the IT giant. “For a year, I would spend
finished credit cards because cash was more imperative. The credit card guys kept
subsequent up with me… I have remunerated off all the subscriptions,” he explains,
amused. At first, Mumbai was threatening on the combine. They weren’t drawing
moneys for themselves and even had to plagiarize Rs 7,000 in February 2010 from a
friend to pay their house rent. With no cash in hand and ruthless plans in place, they
needed to raise funds and happening scouting for external reserves. The process was
riskier than they thought.

The greatest hazard to on-request taxi advertise in India is the examination it gets
from nearby state governments. The Gujarat government is the most recent expansion
to the rundown. The Gujarat government is thinking about a proposition to restrict the
quantity of taxis kept running by taxi aggregators at 20,000 each. The Karnataka
government has just driven the taxi aggregators to constrain the admission charged
according to the expense of the vehicle. There are dangers as well and the on-request
taxi administrators are utilizing tech to explain that. For instance, Ola has revealed an
ongoing ride checking framework to keep tab of any deviation in commute.

36
FIG 5.1 KAALI-PEELI TAXIS

Ola got its initial round of angel funding in 2010: Rs 2.6crore from Anupam Mittal
and Orios Scheme Fund’s Rehan Yar Khan, among others. Ola had crisscrossed the
first hurdle to becoming India’s largest cab aggregator. India’s cab market, which is
mainly unorganised, is about $7 billion and increasing at 25-35% year-on-year,
according to industry estimations. Aggarwal and Bhati comprehended that the growth
occasion was significant in this segment—they just desirable to scale fast.

Uber considers India to be an alluring business sector owing to its sheer volume and
development potential. It has 0.6 million driver accomplices on its stage and is
operational in 32 urban communities. Ola then again is operational in 113 India urban
cities.

The popularity of on-request taxis became all around quickly in light of the fact that
they had the capacity to connect gaps in the intra-city transportation, something the
municipal public transport proved unable. The simplicity of benefiting a cost efficient
ride through smartphone at a sensible expense fuelled the on-request taxi service in
India.

37
FIG 5.2 OLA CABS LINE UP

38
5.1 ABOUT OLA CABS

Ola is India’s first and main aggregator of cabs with over 18,900 cabs, crossways its
11 cities of operations. Originated in January 2011 by two IIT Bombay alumni,
Bhavish Aggarwal and Ankit Bhati, Ola mixes car transport within the city on to a
smartphone application, ensuring convenient, see-through and rapid service
completion for the clienteles and driver partners. Customers can access Ola on the
web, the mobile app or over the client service centre. Ola does not own or function its
own fleet, but totals small workers and single car owners. The list utilization among
small cab workers (ownership of 1-4 taxis) in India is 40-55%. Cab owners’
advantage from the Ola cabs system and skill platform and that helps them acquire
customers and improve their income through better inventory application. Ola is also
the first facility to offer android, IPhone and Windows application in India that not
only books a cab, but also helps clients track their cab on their mobile phone pending
it reaches them. Ola’s GPS allowed mobile application for the driver help sustain
booking requests from clienteles in the vicinity and navigate to the customer’s pickup
point with utmost ease. Such cutting-edge knowledge also enables us to crunch
complex analytics counting demand and traffic heat-maps, usage performance,
potholes and speed data for the entire city. Ola also works with top car producers and
financial institutions to help drivers to buy their own cars at huge discounts and access
to reasonable repayment schemes, thereby nurturing entrepreneurship.

39
OLA APPLICATION FIG 5.3
India is by all accounts experiencing a likely Taxi unrest. Each and every other day,
there is another start up offering proficient and prudent taxi administration to the
natives working urban and rustic ways of life. Going inside the city has dependably
been a revile for some people, particularly for those living in swarmed urban
communities like Delhi, Mumbai, Bangalore, and so on.
While the local trains develop as an option in contrast to spending money for fuel and
holding up in heavily congested rush hour gridlock in cosmopolitan Mumbai, the
threat of going by these trains is incalculable. The separations in Bangalore pulverize
the soul out of any individual who wants to drive while the traffic makes driving your
own vehicle in the city awful. Ola Cabs is a taxi administration that was begun in
2010 in Mumbai to fathom the city’s transport misfortune.

The Indian cab market is attached to be anywhere near $9-10bn and is predicted to
grow at an over 25% yearly. Most highly, barely 10% of this market is prearranged
and the rest of it is dispersed across small to average sized operators owning a car of

40
their own or a few cars over time with chosen drivers. India, yearly sells 2.67mn cars
and over 15mn two wheelers in the individual vehicle space segment. Car possession
in India is still very little and the only known public transport option at known scale
are the auto rickshaws. In spite of this, flexibility is an issue and a high quality,
dependable conveyance option a dream for most metropolises in the country. Look
around by hand on the roads and you’ll find most cars with one or at most, two
travellers. This is not just inefficient, but also expensive in the long run for separate
car owners as well as those availing of cab services. Using knowledge, particularly
mobile, at scale has been the plan adopted by Ola as a breadwinner of Transportation
as a Service. To put it in viewpoint over 8mn smartphones are accepted in India every
month. That means, there is an emerging medium to reach out to the Indian purchaser
and solve basic problems like transport for him, professionally.

Booking a cab with a famous business, in order to avoid any issues is common these
days. With the same supposed in mind of evading last minute subjects, Pradeep
Chopra, Co-founder & CEO of Digital Vidya reserved a cab for his wife and
descendants who were going to a birthday party. He made a booking with Ola Cabs,
which is a Mumbai based business and is careful to be one of the most general Indian
radio taxi service workers, by 12 AM for 5:30 PM departure. At 4:45 PM, his wife
called him saying that she has recieved a call from Ola Cabs personnel about the
cancellation of the cab due to inaccessibility. At this point when he was about to enter
a conference, he found himself in a state of searching for more options rather than
intent on his meeting and work. While he was irritated to look for different
alternatives, he got a message from Ola Cabs about the specifics of the driver of the
taxi. However, he before talking with the taxi driver that since the taxi was 30Kms far
from his home, so it would have been of no utilization. After a ton of endeavours for
finding different alternatives, he understood that his 5 years of age girl will be missing
for the much-anticipated birthday gathering of her friend.When he achieved his home,
he tuned in to the total story of his better half about Ola Cab's faculty and chose to
leave an itemized audit about his terrible conduct following day. While attempting to
keep his break and visit improvement business above water, Bhavish needed to
venture out from Bengaluru to Bandipur, for which he acquired a vehicle, which
turned out be a not all that good experience. The cab driver ceased the taxi amidst the
ride and asked for a renegotiation of what Bhavish was paying him.. After being

41
refused, he proceeded to leave him en route his destination. This is the point at which
he appreciated how his circumstance was most likely like a great deal of clients the
nation over who are sitting tight for a quality taxi administration, yet wound up with a
one that stood them up and dropped them off late, didn't adhere to their desires, and
accompanied drivers that were dangerous behind wheels.

Out of the blue, he saw the chance and plausibility that another taxi booking
administration could be presented, and subsequently, he adjusted his business from
his past start-up to the one we today know as – Ola taxis. This began in November
2010, where he was joined by his co-founder Ankit Bhati in his start-up, his parents
however, didn't concur with his concept of setting up Ola. They were thoroughly
annoyed with his choice to become a ‘travel agent’, but when Ola cabs completed it’s
first round by the backing of two angel investors, they went on to trust his idea and
understood the change he was trying to bring.
 As an alternative of purchasing and letting drive their own cabs, Ola cabs
joined with Taxi Drivers, and added a touch of modern technology to the
entire set up, where people could book cabs at a short notice through their
smartphones using the app. The reservations permitted half/full day fee and
even outstation taxis. They now have almost 3,000,000 cabs across the India,
offering variety of cab choices – Mini, Prime, and Luxury – which can be paid
for, through one of the various payment modes available. Bhavish who works
15 hours a day, promises slide in the prices, where Ola cabs gets a profit on
every sale that the taxi driver makes, which makes it a corporation that works
on pay-per-performance model. The cab drivers can also opt for the access to
the expertise platform benefits, by paying a negligible fee to Ola cabs. Since
its starting, Ola taxis has raised assets from Softbank Corp and different
financial specialists amid two rounds of VC finding. They likewise recently
thought of the arrangement of 'charging lesser than a customary auto rickshaw'
by offering taxis at modest costs of Rs.16/km. Ola cabs has now ventured into
co-operating with autos, with the presentation of Ola Auto. You can now find
an auto on request, using their application.

42
 While its best adversary has been involved in a social violation of social
norms since the turn of this current year, Ola has been crossing miles in the
online taxi collection space with new highlights reliably added to its stage.
Truth be told, according to a prior ET report, its valuation was increased by as
much as 12% by one of the world's biggest resource the executives
organization, Vanguard World Fund.

 Reasonable exchange controller, competition commission of India has


endorsed extra procurement of 6.72% stake which is being made through
Lazarus Holdings, consolidated in Singapore. It is an exceptional reason
vehicle which will be utilized as a venture holding organization. Merger and
acquisitions past a specific edge require the endorsement of the CCI.

 In spite of the fact that SoftBank needs Ola to converge with Ola is chasing for
a greater financial specialist who could buyout SoftBank's 26 percent offer in
the organization.

 Ola Cabs has arisen as the winner of the communal media share of consumer
minds among the radio taxi facility providers according to account by
Simplify360, a big information analytics tool provider focusing chiefly on
social media. Ola Cabs has 36% share of voice followed at a far distant
subsequent by Meru Cabs with 19% share. The social media has tag
movements which may be one of the reason for the higher share. But the brand
has more reliable buzz even without the hash tag campaign when related to
other players in the business. Uber India also despite having social
broadcasting movements were at a distant third in the social broadcasting
space. Other players like Meru Cabs, Easy cabs and TAB cabs managed
poorly with barely half a thousand references in a month.

 The study also shows up interesting comments like 23% of the users of Meru
cab users were displeased. They have a very high undesirable opinions

43
towards the brand. This has led to the formation of hate on Twitter. The list
does not end here. Easy cabs and Taxi for sure has 28% and 27% undesirable
opinions respectively. Ola Cabs and Uber India has high positive opinions of
25% positive opinions each while Mammoth Cabs has 22% positive opinions.
“Since the business is purely a service based industry the fraction of
unsatisfied customers may be more” remarks Gin Vangelis, head of
investigation at Simplify360. “The negative opinions are fairly high in other
service based sectors also. For example, the fraction of negative opinions in
the Telecom and investment sector also ranges from 25 to 30%”.

PROTEST AGAINST OLA CABS FIG 5.4


 Cab aggregator Ola has supposed it has employed MoU with Government of
Madhya Pradesh to create 24,000 businesspersons in the state. The MOU is
absorbed towards training, ability development and authorisation of 24,000
driver partners in the next two years, Ola said in an announcement. It said the
MoU has been employed with Madhya Pradesh State Ability Development
Mission (MPSSDM) and Executive of Ability Development (Practical
Education & Skill Growth Dept.).

 Ola cabs brings thousands of drivers together, who are well trained and their
priority is always the customer’s safety and satisfaction. They prioritise the
confidentiality of customer’s information like login details, ride details,

44
contacts and payment information by using Secure Network (SSL/TLS). This
means that no one can get the information without consumer’s permission and
all the data is safely encrypted and stored.

 Ola also focuses on the safety of consumer’s while they are travelling in their
cabs by hiring professional and well-trained drivers who have good record and
driving experience so no one’s life or safety is in danger. Every driver goes
through several tests and background checks so that the right drivers could be
hired.

 Ola taxis go about as a facilitator in giving cab booking organizations to


customers through various channels. Earlier, customers could book their taxis
through the site, call or the application. In any case later on Ola rethought their
technique and made arrangements directly through the application. The drivers
have a flexibility to pick their own specific time to login to OLA Application
and see requests for rides from customers. They may remain logged out of the
structure as shown by their need. The wellspring of pay for OLA is the
commission for each drive and the costs they understand are moreover low as
they basically need to contribute just on the mechanical progression.

 Ola has ended up being an amazing development organize for transportation


and offers straightforward options of booking a taxi through an application
and offers versatility to the driver to the extent preparation to work. The
people who work more get motivations. These organizations don’t possess
vehicles nor do they utilize the drivers, they basically interface with the
drivers through the application. They are the innovation driven commercial
centre. The organization in this way started to develop at a speed of light
because of achievement of comparatively radical techniques.

45
 Not just has Ola been manufacturing unions with organizations like Google,
Airtel and Zomato, it has been going into key associations with different
Government divisions, including Airport Authority of India (AAI) and Indian
Railways.

46
CHAPTER 6

DATA ANALYSIS AND INTERPREATION

47
Q1. AGE GROUP?

o 15-25
o 25-35
o 35-45
o 45 OR ABOVE

INTERPREATION

The above diagram shows us the age group of the respondents. In this diagram the
percentage of respondents between the age group of 15-25 is 85% of the total number
of respondents. The percentage of respondents between the age group of 25 to 35 is
15% of the total number of respondents. The numbers of respondents between the
age group of 35 to 45 and 45 or above are none because of the persons available for
the survey at the time were mostly students.

48
Q2. GENDER

o Male
o Female

INTERPREATION

The above diagram shows us the Gender of the respondents. In this diagram the
percentage of respondents whose gender is Male is 60% out of total number of
respondents. The percentage of respondents whose gender is female is 40% out of
total number of respondents.

49
Q3. YOUR PROFILE?

o STUDENT
o HOME MAKER
o SERVICE
o BUSINESSMAN

INTERPREATION

The above diagram shows us the profile of the respondents. In this diagram the
percentage of respondents who are students is 90% out of total number of
respondents. The percentage of respondents who are into Service is 10% out of total
number of respondents.

50
Q4. HOW OFTEN DO YOU USE TAXIS?

o DAILY
o WEEKLY
o MONTHLY
o RARE OCCASIONS

INTERPREATION

The above diagram shows us the respondents who are accustomed to use taxi
services. In this diagram the percentage of respondents using taxi service daily
is 5%. The percentage of respondents who are using taxi weekly is 55% out of
total number of respondents. The percentage of respondents who are using taxi
monthly is 25% out of total number of respondents. The percentage of
respondents who are not using taxi regularly is 15% out of total number
respondents.

51
Q5. WHICH ONE IS BETTER?

o OLA CABS
o KALI PEELI TAXIES
o OTHER

INTERPREATION

The above diagram shows us the frequency of the data proving that which cab
industry people prefer. In this diagram the percentage of respondents who
prefer OLA is 65% out of total number of respondents. The percentage of
respondents who use kali-peeli taxi rather than OLA is 5% out of the total
number of respondents. The percentage of respondents who use neither of the
services is 30% out of the total number of respondents.

52
Q6. HAVE YOU EVER USED OLA CAB SERVICES?

o YES
o NO

INTERPREATION

The above diagram shows us whether the respondents have ever used Ola
Cabs. In this diagram the percentage of respondents who use OLA is 100% of
the total number of respondents. The numbers of respondents who has never
used Ola were none which shows how popular it is that almost everyone who
uses taxis knows about it.

53
Q7. WHAT DO YOU EXPECT WHILE BOOKING A TAXI?

o LOW FARES
o QUICK SERVICE
o QUALITY SERVICE
o AVAILABILITY

INTERPREATION

The above diagram shows us the respondents that what people except while
booking a taxi. In this diagram the percentage of respondents who prefer low
fares is 40% out of the total number of respondents. The percentage of
respondents who prefer quick service is 25% out of the total number of
respondents. The percentage of respondents who prefer quality service is 20%
out of the total number of respondents. The percentage of respondents who
prefer availability is 15% out of the total number of respondents

54
Q8. DO YOU THINK OLA HAS CAPTURED THE TAXI BUSINESS?

o YES
o NO
o MAYBE

INTERPREATION

The above diagram shows us the respondents who thinks that OLA has
captured the taxi industry. In this diagram the percentage of respondents who
thinks that OLA has captured the industry is 45% out of the total number of
respondents. The percentage of respondents who thinks that OLA haven’t
captured the taxi business is 35% out of the total number of respondents. The
percentage of respondents who thinks neither from the above convictions is
20% out of the total number of respondents.

55
Q9. DO YOU THINK TRADITIONAL TAXI DRIVERS NEED TO USE SMART
DEVICES TO RENTER THE MARKET?

o YES
o NO
o MAYBE

INTERPREATION

The above diagram shows the respondents who thinks that traditional taxi drivers
needs to use smart devices to renter the market. In this diagram the percentage of
respondents who thinks that traditional taxi drivers should use smart devices is 85%
out of the total number of respondents. The percentage of respondents who thinks
that traditional taxi drivers should not use smart devices is 5% out of the total number
of respondents. The percentage of respondents who are not very sure about their
conviction is 10% out of the total number of respondents.

56
Q10.HOW MUCH DO YOU RATE OLA CAB SERVICES?

o1
o2
o3
o4
o5

INTERPREATION

The above graph shows us the respondent’s ratings of Ola. In this diagram the
percentage of respondents who have rated OLA in the grade of three are is 55% out of
the total number of respondents. The percentage of respondents who have rated OLA
in the grade of four is 25% out of the total number of respondents. The percentage of
respondents who have rated OLA in the grade of five is 20% out of the total number
of respondents.

57
Q11.DO YOU THINK OLA APPLICATION NEEDS MODIFICATION?

o YES
o NO
o MAYBE

INTERPREATION

The above diagram shows us the respondents that who all thinks the OLA
application should have a modification. In this diagram the percentage of
respondents thinks that the Ola application should be modify is 45% out of the
total number of respondents. The percentage of respondents who thinks Ola
application should be not be modified is 15% out of the total number of
respondents. The percentage of respondents who thinks neither is 40% out of
the total number of respondents.

58
Q12. DO YOU THINK TRADITIONAL TAXI DRIVERS SHOULD START
ACCEPTING PAYMENTS THROUGH E-WALLETS?

o YES
o NO
o MAYBE

INTERPREATION

The above diagram shows us the respondents who believes that traditional taxi
drivers should accept money via E-WALLETS. In this diagram the percentage
of respondents who thinks that payment should be online is 85% out of the
total number of respondents. The percentage of respondents who thinks the
payments should not be done online is 5% out of the total number of
respondents. The percentage of respondents who thinks neither is 10% out of
the total number of respondents.

59
Q13. FOR WHAT DISTANCE WILL YOU PREFER OLA CABS?

o 0-5 KM
o 5-10 KM
o 10-15 KM
o MORE THAN 15

INTERPREATION

The above diagram shows us the respondents who prefer OLA for various
distances. In this diagram the percentage of respondents who prefer Ola for 0-
5 Km is 5% out of the total number of respondents. The percentage of
respondents who prefer Ola for 5-10 kms is 30% out of the total number of
respondents. The percentage of respondents who prefer Ola for 10-15 kms is
45% out of the total number of respondents. The percentage of respondents
who prefer Ola for more than 15 kms is 20%.

60
Q14. IF NOT OLA THEN WHICH MODE OF TRAVEL WILL BE YOUR NEXT
PREFERENCE?

o KAALI PEELI TAXI


o UBER
o MERU
o OTHER

INTERPREATION

The above diagram shows us the respondents who will prefer other taxi source if Ola
is not available. In this diagram the percentage of respondents who will prefer Kaali-
peeli taxi is 10% out of the total number of respondents. The percentage of
respondents who prefer Uber is 75% out of the total number of respondents. The
percentage of respondents who prefer other mode is 15% out of the total number of
respondents.

61
Q15. WILL YOU PREFER KAALI PEELIS IF THEY START ON APP
COMMUTE?

o YES
o NO
o MAYBE

INTERPREATION

The above diagram shows us the respondents who will prefer kaali-peelis if
they start with App commute. In this diagram the percentage of respondents
who will use Kaali-peelis is 35% out of the total number of respondents. The
percentage of respondents who will not use Kaali-peelis is 20% out of the total
number of respondents. The percentage of respondents will think neither is
45% out of the total number of respondents.

62
Q16. DO YOU FEEL SAFE WHILE TRAVELLING IN OLA CABS, INCLUDING
NIGHT TRAVEL?

o YES
o NO
o MAYBE

The above diagram shows us the respondents who feels safe while travelling
in Ola cabs, including night travel. In this diagram who said they felt safe
while travelling in Ola is 35%. The percentage of respondents who said they
did feel safe while travelling in Ola is 20%. The percentage respondents who
felt maybe they felt safe is 45%.

63
CHAPTER 7

FINDINGS OF THE STUDY

64
Ola and Uber are the most anticipated online aggregators. A survey was conducted by
us to prove this fact. The survey basically deals with the layman’s everyday needs and
expectations from the transport industry. The questions mainly asked were travelling
frequency, distance of travel, safety regarding commuting etc. the questions was
distributed at a local level but the answer or the ratio was as expected. People in
today’s life prefer Ola and Uber over their counterparts the “kaali-peeli”. The survey
shouts affirmative response for the aggregators. The survey shows that the number of
students were asked more. There are about equal number of people who travel by cabs
on nearly daily basis. This gives away the preferences to Ola. The alternative for Ola
was chosen to be Uber. The major reason for Ola and Uber to dominate the travel
industry are as mentioned:

• Low fares
• Quality services
• Quick response and
• Safety
The survey actually rates Ola cabs in top notch than the kaali-peelis.

65
CHAPTER 8

RECOMMENDATION AND SUGGESTION

66
 Numerous suggestions were very dreary in nature which reverberated
contradicting both upper and lower confines on the fares this was the principle
securing against the OLA taxis which was roughly 12.Rs per Km. They were
additionally against the higher permit costs, uniform colour code of the
vehicles of taxi aggregators and setting the cutoff on the aggregators who
needed to keep running something like 50 percent of their vehicles over 1,400-
CC motor limit, and as a result of such conviction OLA was not ready to
accomplish their objectives when they entered in the market as fresher's.
 Whereas then again we got conventional cab drivers which additionally
presented their proposals were in support of the draft and rather requested
expanding the permit expenses of such vehicle proprietors. A ton of
consumers of the taxi aggregators had said that they are agreeable to the upper
top on the taxis however requested to remove the lower cap. The major
objection solely remains on bringing higher permit costs for the vehicle
owners who find it very expensive,” he added. And the main propaganda
which traditional drivers to look forward in the future that would be, they
descriptively need to star an app base service to their customers
 The first dimension of Brand Knowledge is Brand Awareness. It is related to
the strength of the brand node or trace in memory, as reflected by consumers’
ability to identify the brand under different conditions. This research paper is
an attempt to explore the brand awareness and customer satisfaction towards
OLA CABS with respect. As we all know that the user base of OLA cabs is
too high then also they got certain competition in the current market so as
considering the circumstances they need to emphasise on the fares of the cab
service and create mobility especially in the rural areas
 To see the current user situation of the OLA cabs we conducted a research
with respect to Convenient Data Specimen method is used for Data gathering.
The study custom squally primary data besides secondary data. The primary
data was collected by using a well-structured questionnaire from 20
respondents and are entered into the sub-tables by using the simple percentage
analysis, Ola cabs has positioned its brand and has created a good brand image
in the minds of customers concerned with personal transportation services
compare to Uber and Meru cabs but to attract more customers they need to

67
completely demolish the Traditional taxi and Rickshaw union from the root to
enter into this business completely and also needs many modifications in the
official app of OLA.

68
CHAPTER 9

CONCLUSION

69
 Most of the people of use taxis on weekly basis rather than using the cab
service on a daily basis because of the cost of travel which is a little more in
comparison to other mode of transportation like buses, trains, etc.
 Most of the people prefer Ola over other cab services which shows how much
consumers trust them and are happy with their service. Very few people
preferred kaali-peeli taxis which indicates that their market is getting scarce
day by day because of these new taxi services being introduced.
 Majority of customers while booking a cab looks for low fares which makes it
a major component of cab service because the customer will only book the cab
with lowest possible fare available.
 Ola has become the major player in cab business today which evident by the
data presented previously. This has made harder for the traditional taxi drivers
to earn their living and have no choice to join these new taxi services.
 Ola is also a safer option for a lot of people especially women who have travel
late at night and do not have to worry about booking a cab from Ola as the
drivers hired by them are professional and well trained, so the chance of
having any problems is near to impossible.
 It has also been found that people would travel in kaali-peeli taxis if the
application service is provided by them which also concludes that consumers
wants the ease of booking a taxi which traditional taxis does not provide right
now.

70
CHAPTER 10

REFERENCE SECTION

71
10.1 WEBLIOGRAPHY

 Neha Kulkarni. Mumbai city taxi scheme 2016: Suggestions to reach govt this
week, scheme in operation by next week. Retrieved November 17, 2016, from
http://indianexpress.com/article/cities/mumbai/mumbai-city-taxi-scheme-
2016-suggestions-to-reach-govt-this-week-scheme-in-operation-by-next-
week-4379623/

 Saurabh Jain. Uber, Ola Cabs have a booming business in Kolkata. Retrieved
August 12, 2016, from http://www.bgr.in/news/uber-ola-cabs-have-a-
booming-business-in-kolkata?/

 Omkar Phatak. Ola, Uber pushing traditional taxis to the brink Retrieved Sep
20, 2016 from http://www.in.techradar.com/news/A-British-Pakistani-boy-
becomes-worlds-youngest-computer-programmer/articleshow/54420802.cms

 Mohul Ghosh.35,000+ Mumbai Kaali-Peeli Cabs Take on Uber/Ola With


Their Own App Called 9211. Retrieved January 9, 2016 from
http://trak.in/tags/business/2016/01/09/mumbai-kaali-peeli-cabs-uberola-app-
9211/

 Nikhil Gor. Kaali-peeli or radio cab? Online survey checks what commuters
prefer Retrieved August 29, 2016 from
http://indianexpress.com/article/cities/mumbai/kaali-peeli-or-radio-cab-online-
survey-checks-what-commuters-prefer-3001057/

72
 Dipavali Hazra. Traditional taxis struggle in the time of Uber, Ola. Retrieved
23 April, 2016http://www.sundayguardianlive.com/investigation/4289-
traditional-taxis-struggle-time-uber-ola
 Aarefa Johari. Unfair competition? How Uber and Ola are killing livelihoods
of Mumbai's auto and taxi drivers. Retrieved May 09, 2016.
https://scroll.in/article/807342/unfair-competition-how-uber-and-ola-are-
killing-livelihoods-of-mumbais-auto-and-taxi-drivers

 Somit Sen.50% of Mumbai's kaali-peeli taxis may migrate to Ola and Uber.
Retrieved Oct 19, 2016.http://timesofindia.indiatimes.com/companies/50-of-
kaali-peeli-taxis-may-migrate-to-Ola-and-
Uber/articleshow/54933821.cms?from=mdr

 Nithya Nair. Black and yellow taxi to go on strike against Uber and Ola.
Retrieved Jun 21, 2016. http://www.freepressjournal.in/mumbai/black-and-
yellow-taxi-to-go-on-strike-against-uber-and-ola/875363

 Survey by Grahak Panchayat : https://www.openpr.com/news/1281556/On-


Demand-Taxi-Market-in-India-2018-2023.html

73
10.2 QUESTIONNAIRE

Q1. AGE GROUP?

o 15-25
o 25-35
o 35-45
o 45 OR ABOVE

Q2. GENDER?

o MALE
o FEMALE

Q3. YOU’RE PROFILE?

o STUDENT
o HOME MAKER
o SERVICE
o BUSINESSMAN

74
Q4. "HOW OFTEN DO YOU USE TAXIS"?

o DAILY
o WEEKLY
o MONTHLY
o NO RARE OCCASIONS

Q5. WHICH ONE IS BETTER?

o OLA CABS
o KALI PEELI TAXIES
o OTHER

Q6. HAVE YOU EVER USED OLA CAB SERVICES?

o YES
o NO

Q7. WHAT DO YOU EXPECT WHILE BOOKING A TAXI?

o LOW FARES
o QUICK SERVICE
o QUALITY SERVICE
o AVAILABILITY

75
Q8. DO YOU THINK OLA HAS CAPTURED THE TAXI BUSINESS?

o YES
o NO

Q9. DO YOU THINK TRADITIONAL TAXI DRIVERS NEED TO USE SMART


DEVICES TO RENTER THE MARKET?

o YES
o NO
o MAYBE

Q10. RATE OLA CAB SERVICES ?

o1
o2
o3
o4
o5
Q11. DO YOU THINK OLA APPLICATION NEEDS MODIFICATION?

o YES
o NO
o MAYBE

76
Q12. DO YOU THINK TRADITION TAXI DRIVERS SHOULD START
EXCEPTING PAYMENTS THROUGH E-WALLETS?

o YES
o NO
o MAYBE

Q13. FOR WHAT DISTANCE WILL YOU PREFER OLA CABS?

o 0-5 KM
o 5-10 KM
o 10-15 KM
o MORE THAN 15

Q14. IF NOT OLA THEN WHICH MODE OF TRAVEL WILL BE YOUR NEXT
PREFERENCE?

o KAALI PEELI TAXI


o UBER
o MERU
o OTHER

77
Q15. WILL YOU PREFER KAALI PEELIS IF THEY START ON APP
COMMUTE?

o YES
o NO
o MAYBE

78
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FIGURES EXECUTIVE SUMMARY The vision behind Ola Cabs is to give bother
free, solid and innovative and effective vehicle rental support for Indian
population. In a profoundly divided and exceedingly eccentric market of taxi
services, there is a noteworthy lack of simple and agreeable on-ground
choices for transportation, be it inside the city outside. They run on a pay-for-
performance model. OLA cabs charges a commission in whatever business
they make.

They also get access to a innovative technology platform. OLA charges taxi
drivers a little fee. Bhavish Agarwal, the co-founder and Chief Executive Officer
of Ola cabs, portrays Ola cabs as an innovation firm instead of a taxi service
firm. One of his desire is to almost certainly deliver a taxi within 20 minutes of
the booking .

For this, the organization is making utilization of data analytics, with the goal
that they can estimate interest for its administrations consistently. In light of
this information examination they expect to be delivering taxis within 20
minutes of booking. At present it is around 30-35 minutes. The Indian radio
taxi showcase alone is placed anyplace between $6-$9 billion dollars by
various estimates, and is anticipated to develop at 17-20% every year.

All the more significantly, the organised taxi business is as yet little when
contrasted with rest of the taxi business in India; it comprises just 4-5% of the
market regarding sheer number of vehicles. The rest is by administrators who
own fleet of 2-50 vehicles and ordinarily have a nearness in 1 or 2 urban areas.
Ola's market is sufficiently huge in light of the fact that India's rate of vehicle

79
proprietorship is low to 41 for every 1000 individuals and positions 128th
worldwide and along these lines Ola organization has a solid conviction that
there is an open door for populace to take a jump in car possession by and
large and rather depend on booking administrations like Ola taxis. The
number of inhabitants in India is 1.2 billion which is sufficiently vast for Ola
organization to catch the market.

80

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