On 3rd December 2010, Ola was established in Mumbai as an online taxi aggregator that is currently situated in Bengaluru. In 2019, the company has expanded a network of 1.t million drivers in around 250 cities. In November 2014, the company changed itself into auto-rickshaws in Bengaluru.
Market Penetration
It has been observed that in the past few years the automobile industry is experiencing rapid growth due to the entrance of new potential entrants in the market. Yet, there is a positive fact to accept that taxi-hailing stage Ola will zoom past others and keep on growing in the next upcoming years. Similar to its market competitors, Ola also provides a range of unlimited taxicabs for workers to look over, including prudent options like Micro and Mini taxis, yet its auto-rickshaw service makes it different from others. In 2016, OLA has introduced autorickshaw service in Delhi and now it has developed its business in seven states around the country. According to the ET report, 15% of the company’s revenue comes from the auto-rickshaw service. The OLA company has attained a competitive advantage over its three-wheelers because it offers different fares for different cities being omnipresent on roads. The average fare of the OLA taxi is less than 1.5rupees per km. Furthermore, the form is buoyant to develop its fleet size that is expected to cross 250000 in the next year.
Product Development
Ola has decided to make an association with other firms like Google, Airtel, and Zomato. The government of India is planning to change its country into 100% automobile nation by 2030 and it would be a great step towards the right direction to expand the business. The Ola has been creating strategic collaboration with different public sectors like the Airport Authority of India and Indian Railways to promote electric cars in India. Introduction of the first multi-model electric car in the Ola app with additional 200 motors around buses, cabs, and auto-rickshaws in Nagpur besides fast technological charging platforms is considered a vital achievement of a company in terms of sustainable mobility. The company is also planning to expand this program into other cities in India. Moreover, the Ola riding app is working on creating booking kiosks in 12 railways platforms and 6 airports of India. By using this app, passengers would be able to book a taxi directly through the Ola zone instead of wasting time on the app.
Market Development
People living in London mostly prefers to travel through ride-hailing services such as uber, grab and many other. Based on this fact, London is considered the world’s largest market in the automobile industry. Currently, Ola is offering its services only in India but now it has planned to expand its business by introducing its vehicle service in London. It has been confirmed by the management that, Ola has received a license from London ride-hailing service department, to start its operation in London. According to TechCrunch, TFL has granted a PHV license to Ola. Expansion of business in London would be greatly profitable for the Ola because London is the most iconic city across the globe as it provides a successful transport system. In 2018, Ola has launched its ride-hailing services in five big states of London that includes, South Wales (Cardiff, Newport, and Vale of Glamorgan), the South West (Bath, Bristol, Exeter, North Somerset, and South Gloucestershire), Merseyside (Knowsley, Liverpool, Sefton, St Helens, and The Wirral), West Midlands (Birmingham, Dudley, Sandwell, Solihull, Walsall, and Wolverhampton) and Reading. Moreover, the company has hinted to expand its business in Latin America soon.
Diversification
Recently, Ola has planned to introduce a non-banking finance organization to diversify its core business. The company has applied to get a license to establish a non-banking finance company to expand its growth in those areas where its business has not been operated yet. The key objective behind this plan is to diversify its services beyond the ride-hailing firm. The company is expecting to strengthen the limited credit services that it provides to its customers through the Ola app. The firm has planned to introduce a credit card system with a collaboration of the bank to provide insurance to both rider and driver as well. It has been reported by a few customers that, the company is already offering trip insurance amenities to the riders.