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Marketing Plan Term Paper


Submitted to -: Prof. R.P Sharma

Submitted by-:
Manan Chaudhary - 73
Prateek Singh Tak - 80
Rupam Jhanwar - 90
Siddhanth Dubey - 92
Siddhartha Kulkarni 93


Parent Company: ANI Technologies Pvt. Ltd
Category: Service provider for taxi hiring (Aggregator)
Sector: Transport & Logistics
Tagline/ Slogan: Chalo Niklo, Its the smartest way to travel
USP: Standardized customer experience & Price transparency
OlaCabs, popularly known as Ola, is a mobile app for personal transportation in India. Ola
started as an online cab aggregator in Mumbai, now based out of Bangalore and is among the
fastest growing businesses in India. It was founded on 3 December 2010 by Bhavish Aggarwal
(currently CEO) and Ankit Bhati. As of 2015, taxi app Ola has become the third-most valuable
venture-backed company in India after snagging funding of $400 million, or Rs. 2,500 crore,
from a consortium of investors. It is valued at $2.4 billion (Rs 15,600 crore).
It raised $330k in its initial round of funding on April 21, 2011. The company received Series A
funding of $5 million from Tiger Global Management; Series B funding of USD 20 million
from Matrix Partners and Tiger Global; Series C funding of $41.5 million from Steadview
Capital, Sequoia Capital and its existing investors. In Series D round of funding on Oct 25, 2014,
it raised $210 million from SoftBank Internet and Media Inc. and its existing investors.
OLA bought TaxiForSure or TFS on 1 March 2015, for about $200 million. From the 25th of
June 2015, Ola users have gained access to TFS cabs via the Ola mobile application.

5 Cs of Marketing for OlaCabs



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Mission: a marketplace for all types of cabs and car rentals.
Vision: We are a young and energetic company based in Mumbai. Nothing excites us more than
using technology to bring the same efficiency and customer experience to the car rental
industry that you expect from flights!
Goals: short-term goals include improving the rental cabs system in India.
OlaCabs, popularly known as Ola, is a mobile app for personal transportation in India. Ola
started as an online cab aggregator in Mumbai, now based out of Bangalore and is among the
fastest growing businesses in India.
It was founded on 3 December 2010 by Bhavish Aggarwal (currently CEO) and Ankit Bhati. In
November 2014, Ola expanded to incorporate autos on-trial basis in Bengaluru. Post the trial
phase, Ola Auto expanded to other cities like Delhi, Pune and Chennai starting December 2014.
Ola provides different types of cab service ranging from economic to luxury travel. The cabs are
reserved through a mobile app. OLA provides three different tiers of car service to suit different
budgets: luxury sedan models, mid-range, and its Ola Mini range which it claims is priced on the
same level as the humble auto rickshaw.
OLA lets passengers pay in a variety of ways, including cash. It claims to clock an average of
more than 150,000 bookings per day and commands 60 percent of the market share in India.
OLA aims to bring convenience, price transparency and standardization to consumers booking
car rentals and cab services. Initially they used to offer instant confirmation for car rental
bookings, either online or over the phone but now they have adopted an app-only strategy
wherein the users will be able to book the taxi only through the mobile app.
OLA provided a lot of promo codes on their website to give huge discounts in various segments.
They also started the trends of providing fixed rate drops to the airport when they launch in a
city. OLA provides cabs at INR 13 per kilometer whenever Auto Unions call a strike.
By 2014, the company has expanded to a network of more than 18000 cars across more than 65
cities. In November 2014, Ola expanded to incorporate autos on-trial basis in Bengaluru. Post the
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trial phase, Ola Auto expanded to other cities like Delhi, Pune and Chennai starting December
2014. In April 2015, over 40000 cabs are registered & successfully running across 22 cities of

Meru Cabs
Meru Cabs (V-link Travel Solutions) is one of the largest taxi operators in India and is third
largest taxi operators in the world in Assets Ownership space. The company was earlier
following Asset-ownership Model and now started focusing on Aggregation model aggressively.
The company has launched different brand MeruFlexi (Aggregator model), MeruGenie
(Economy) and MeruEve (Women Only). The company is growing at annual growth of 30%,
reported a turnover of INR4.2 billion (US$70 million) for 2014 and we expect to touch INR10
billion (US$160 million) by 2016.
Uber officially launched in India in October 2013. Currently, the company is operating in 21
cities. The concept is gaining lots of popularity around the world. It is posing real challenge to
traditional taxi market. The company is signing up around 20,000 drivers every month around
the world. It is not only serving the existing market but expanding it. Uber does not own cars,
uses state-of-the-art technology to connect drivers with passengers within minutes through a
mobile app for a fee. Uber is ahead in marketing as they did campaigns during elections
(providing Uber at a discounted rate for voting), UberStud (to encourage referral) and free
credits while introducing a new customer. Recently they launched Uber Chopper, by which you
can ride a chopper and have a view of your citys skyline
Taxi For Sure (TFS)
Taxi For Sure was founded in 2011 by Aprameya Radhakrishna and Raghunandhan G to tap
Indian Taxi Market. However, it was acquired by M/s ANI Technologies Pvt. Ltd. (OlaCabs) for
$200 million in March 2015 (Cash and stock deal). The company is one of leading Cab
Aggregators in India and majorly works with the operators to provide cab service. TaxiForSure
will continue to remain independent entity and will complement to the strength of parent
company. As an aggregator of car/cab rentals, its offerings include local point-to-point pick-up
and drop, airport transfer, local packages (for four or eight hours) and outstation packages.
Besides regular rentals, it provides economy cars to the commuters.

Ola has been affected by recent controversies such as the alleged rape of a 27-year-old woman
executive in a cab booked through Uber on 5th Dec 2014. This led to a ban on aggregators which
impacted investor sentiment and customer experience negatively. Owner players like Meru
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benefited from the ban. Drivers of these app based taxi companies became jobless, on paper. Ban
led to high uncertainty in investors who had poured millions into these start-ups. The customer
convenience took a hit in the high volume festive season, leading to customer dissatisfaction
Ola responded to the safety issue of women by undertaking innovative initiatives like womenonly cabs and panic buttons to highlight their focus on customer safety. It launched a pink cabs
service, driven by women drivers and which will only allow female passengers to board them.
The premium service will help Ola compete in a niche segment of the taxi market, dominated by
regional players like SheTaxi etc. Complying with Government regulations, Ola also launched an
emergency contact.
Ola has also been taken to court in Mumbai for not being a licensed operator. There could also be
other hindrances in India. Like their counterparts in other emerging markets, cities in India are
hobbled by poor roads and crippling traffic, but Ola is relying on its technology and the data it
collects to overcome these problems.

The 'driver' is a critical part of the game. As taxi aggregators compete for the same customer pie,
the aggregators are making good customer service the key differentiator. If the drivers are happy,
it leads to better customer service. Ola is planning to rapidly increase its supply chain that
means more staff for nationwide expansions, and more drivers. Beyond simply signing drivers
up with lucrative offers, the OLA CEO Bhavish Aggarwal says that the company is
empowering drivers to become entrepreneurs themselves.
The company works with leading financial institutions that provide loans to help prospective
drivers buy their cars outright, and it also offers training to ensure drivers are equipped to deliver
a quality and safe experience for passengers. Ola trains drivers on health and hygiene, customer
service, good driving practices and vehicle maintenance, among other things. It provides free
education for up to a year for children of drivers who have been rated the best in a three-month
When it comes to Ola Auto, Ola claims to have seen rapid adoption for their platform amongst
auto drivers with about 40,000 autos having signed up. The app helps drivers receive booking
requests from customers around them and also helps them with turn-by-turn navigation to reach

The target audience of OLA is every Tier 1 & 2 city resident, employee and visitor over 16,
female and male who is interested in professional, valued and safe transport services and wants
to enjoy their ride with OlaCabs. Every person in Tier 1 & 2 cities is a potential customer and
should be satisfied by the taxi service of Ola. The prior need of a customer is to get from point A
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to point B. Every customer expects good service for a fair charge. It claims to clock an average
of more than 150,000 bookings per day and commands 60 percent of the market share in India.
Ola has been trying to woo customers by offering huge discounts and better service. Still, brand
loyalty presents itself as a big challenge. High customer acquisition costs along with high
customer migration are burning fast through the finances of Ola. Customers, especially in small
cities prefer cheap autos to cabs. To counter such a phenomenon Ola has started partnering with
autos for its Ola Auto service.
Ola also places special focus on the safety of female passengers. Ola has started giving its drivers
with specific training on how to safely drive unaccompanied women passengers. It has
introduced novel features such as women-only cabs and panic buttons.


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First mover advantage as

a taxi aggregator in India
Top of the mind service
High awareness due to
aggressive TV, online and
print media marketing
Huge customer base &
due to network effect it is
online application

Drivers are the face of the

company and hence their
affects the brand image
While the demand is
huge, amount of cash
burning is huge and



Unorganized market is
huge (~90%) and hence
potential is high
phone users
Rising disposable income
Shifting of consumers
creates huge demand
Acquisition of smaller

Rising competition
Uber has deep pocket and
hence can burn cash
national players
government regulations
in developing countries
Future is unclear due to
lack of regulations and
Customer loyalty is less in
this industry

STP Analysis

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STP stands for Segmentation, Targeting, and Positioning. STP analysis will be carried out to
determine how OLA can become a more influential player in the market.

Segmentation is the process of understanding why people by certain products and services,
which of those can best satisfy the customer, and what the company can do to make its products
and services simply irresistible.
Segmentation for OLA involves segregating the market on factors such as
1. Demographic

IncomeCabs will be accessed mostly by people from the middle class and upper
middle class strata of society, who seek affordable point to point transport.

Family SizeOla provides 3 service options for its customers. The OLA Mini, OLA
Sedan, OLA Auto (in select cities), & its luxury segment (in select cities) enable
customers to choose a ride of their choice depending upon the number of passengers.

Geographical LocationOla is currently operating in at least 50 cities, all tier1 or

tier 2. These cities have been targeted keeping in mind the high frequency at which
the masses commute from one place to another in urban and semi urban areas.

Social StatusOla targets population that is placed higher up the social ladder. It
confers a certain feel good factor on people for choosing to travel by car instead of
taking local transport such as rickshaw or buses.

OccupationOLA are used by students and working professionals alike and anyone
else who had a need for rapid commuting from one place to another.

2. Psychographic

Price SensitivityOla is probably the cheapest option for those who want to hire a
cab. At Rs. 9/km, Ola has the lowest fare rate among all its competitors. Cheap prices
also help to draw the student crowd which forms a substantial part of its revenue. It
has provided 4 choices (Mini, Sedan, Auto, and Luxury) for its users to pick from
depending upon their need and affordability.
Ola also provides its registered users with coupons and discounts (promo codes) in
order to propagate usage of its app.

ServicesOla app lets users book a cab for immediate use or for another time in the
future. Ola thus provides customers with spontaneous service. OLA is also preferred
by those who own no transport of their own because it provides comfort and sound
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Features such as Ola Money allow people the convenience of cashless travel which is
otherwise not possible in local transport. There is also provision to pay by cash if the
customer prefers that.
3. Behavioural

Internet Usage one of the most important factors in determining usage of cab
services is the ability to procure one. Ola cab booking is available through its app
only. It has discontinued the use of its website and does not book cabs via phone calls.
Smartphone users thus form the largest chunk of Ola customers.

OLA targets people from the middle class, upper middle class and rich strata of society who want
to have access to affordable and good quality conveyance facilities. It also seeks to provide a
transport option for masses not possessing four wheelers. Ola aims to provide an alternative for
people who are hesitant in using public transport due to various reasons.
5 criteria are critical to decide whether or not the company has selected a viable target market.
These are -:

Sizethere is huge demand for quality transport facilities in a developing country

like India. The Indian cab market has seen a lot of traction, with over INR 600 crores
being raised by the leading players in the sector. While this has been a very
competitive market, the organized sector forms a small percentage of the overall
market. It is estimated that the radio taxi market in India is $6-9 billion dollars
growing at 17-20%. It is also estimated that the number of taxis in the organized
sector will reach 30,000 by 2017.

Expected Growth as of 2014, Ola had a fleet of roughly 9000 rented cars. It is said
to be adding about 1000 vehicles (both taxis and autos) to its fleet every month. Ola
currently has 60% of the market share in the cabs sector. It is expected to grow

Competitive PositionOla has relatively lower fares. It started off at Rs. 10/km.
Currently it operates at rates between Rs. 9/km to Rs. 13/km. Ola has devised a
strategy wherein it provides special service at Rs.13/km in absence of local public
transport due to union strikes etc. Ola is a market leader in every city that it operates.
It has a fleet of luxury vehicles, sedans, and hatchbacks for intra-city transport. None
of its competitors provide such variation. It also provides taxis for intercity travel.

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An important step before developing the marketing mix is deciding on how to create an identity
or image of the product in the mind of the customer. Every segment is different from the others,
so different customers with different ideas of what they expect from the product. It answers the
question How do you want to be perceived?
OLA positions itself as a company that will Use technology to bring higher efficiency and
customer experience.
Ola has 2 taglines that help to convey its positioning.
Chalo Niklo
Its the smartest way to travel
Through its Chalo Niklo campaign, OLA wanted customers to perceive its cabs as their own
cars. The customers could call a cab anytime, anywhere as if they had a personal chauffer. Earlier
customers used to find it very difficult to book a cab but through this campaign OLA positioned
itself as a service that is always available, is cheap and affordable.
Later on, it came up with Its the smartest way to travel campaign where it focused on its
additional services. Ola positioned itself to an Experience provider where it provides various
services like music, phone battery charging, snacks, water bottle to make the journey more
comfortable and an enjoyable. Moreover, it simplified the process of boking a cab by moving to
app only platform. Thus, it repositioned itself to an Experience provider rather than just a
transport or cab company.

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Marketing Mix
OlaCabs, also known as Ola, is a mobile app. It was Indias first cab aggregator. It is Indias
largest cab and Auto aggregator, with a fleet of above 18,000 cars across 85 cities.




The service is a GPS enabled mobile app based personal transportation Service.
It is a 24*7 service
The service is divided into 3 types
Ola Sedan: It is a service that provides the customers a transportation in a Sedan
with more space to accommodate more people (3-4)
Ola Mini: It is a service that provides the customers transportation in a Mini car
with less space usually preferred for solo travel.
Ola Prime: It is a service that provides customers a Business class experience
with high end cars such as Skoda Rapid, Honda Civic etc.
Ola Auto: It is a service that provides the customers transportation in an auto
rickshaw and is preferred for short distances and for people who want affordable
Kaali Peeli Taxi: This service is only for people from Mumbai and brings the
famous kaali peeli taxis under Olas ambit.

Ola Cabs has a dynamic pricing system. Services targeting different consumer needs are priced
accordingly. The Ola Mini Cabs which targets consumers who merely want to get from place A
to B are priced at a lower rate than Ola Sedan Cabs which offer more comfort in terms of
legroom and boot space. This is also the case because Ola Mini Cabs give a better fuel mileage
than their Sedan counterparts. A premium service of OlaCabs is Ola Prime Cabs which is on an
average priced around twice of that of Ola Sedan Cabs; they include the luxury segment of the
cars. The price of Ola Cabs also differs across the country. This is due to various factors such as
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tax laws of the state, demand from consumer, competition and ease of functionality in the
respective city. The service tax is calculated on the total price indicated on the meter and is added
after completion of journey.
General Pricing Strategy
1. Standardized rate
The standardized rate of Ola Cabs is the minimum price that a customer has to pay per journey.
This varies from the type of cab you book to the city you book the cab in. The standardized rate
is applied for the first x number of kilometers of travel. Ola has not kept the number of
kilometers a constant throughout the country due to variation in distance in the city to various
levels of congestion of the cities.
For example: In Mumbai the standardized rate of Ola Mini Cabs is Rs100 for the first 4km
whereas in Mysore it is Rs 49 for the first 2km. It is priced so keeping in mind that Mumbai is a
Tier 1 city which is heavily congested. Keeping a standardized rate for 4km encourages the
consumer to choose Ola for longer distances thereby increasing the chances of a higher wait time
2. Rate per km
The rate per km of Ola Cabs is the rate at which the journey is calculated per km after the
standardized rate for the first x number of kilometers. This rate not only factors in the above
elements which affect the local price of standardized rate but it additionally includes the average
journey length. This means that the rate is strategically implemented according to OlaCabs
needs in that specific geographical market.
For example: In Delhi, the Ola Sedan is priced at Rs11 per km as opposed to Goas Rs15 per km
as OlaCabs correctly perceives Goa as a tourist destination where demand of means of transport
is high.
3. Ride time Charges
In additional to standardized rate and rate per km, Ola also charges an additional ride time charge
which includes both travel time as well as wait time. The charge ranges from Rs1 to Rs2 per min
depending on city. This price additionally factors in the average duration of travel of a customer.
Also the first few minutes of the ride (ranging from 5-10 minutes) are free.
For example: Ride time charges for Mathura is Rs1 per minute whereas ride time of Haridwar is
Rs2 a minute as the distances travelled in Haridwar are generally shorter than Mathura but take a
longer period of time due to infrastructure.
4. Peak time charges

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Peak time charges are generally applied across all segments of Ola. Under peak time charge a
multiplier is calculated depending on the demand of vehicles. This multiplier ranges from 1.2x to
4x. This charge is purely demand based and is calculated by their systems using an algorithm.
The customer is notified of the multiplier before he books the Cab.
For example: At peak hours such as 6pm to 8pm when there is a dearth of Ola vehicles but an
excess of customers a factor of 2x may be applied to the Ola rates. This ensures that Ola is taking
advantage of the higher demand and also making up for the duration of day which has less
Method of payment
To offer the consumer a greater sense of comfort during payment, Ola includes multiple avenues
through which they can pay. The consumer can choose to pay through cash, OlaMoney, Coupon
Codes or even part payment
The customer can choose to pay through cash. This transaction is done on completion of the ride
and is made directly to the cab driver
OlaMoney is another product by Ola which till recently was used exclusively to pay for OlaCabs
(it can now be used as an e-wallet for other e-commerce websites as well). To pay through the inapp wallet, the customer has to inform the taxi driver that the payment will be made with Ola
Money. On completion of the ride, the driver shall enter the fare displayed on the meter, followed
by the four-digit OTP that the customer will receive through an SMS. Ola money is then
automatically deducted from the customers account. Drivers can withdraw their payments
anytime from the prepaid ATM card that is linked to their Ola account. Cash-less rides are of
great benefit to the customer as there is no hassle for change.
Coupon codes
Another popular way of payment is using coupons. These coupons are obtained through various
Ola promotion activities such as the referral system.
Part Payment
Consumers have the option of paying for Ola rides through part payment as well. Where the ride
can partly be paid using a coupon or OlaMoney and the rest can be paid in cash. This ensures
that the customer does not face the uncertainty of his money in the e-wallet going to waste and is
also convenient if he is low on cash.

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OlaCabs are currently available only in India. Olas distribution throughout the country is wide
and varied. OlaCabs are available in over 87 cities across India. In these 87 cities, you can book
an Ola Cab as long as you have a working internet connection. The most popular cars which are
generally booked through Ola are Toyota Innova Taxi Cab, Tata Indica Taxi Cab, Tata Indigo
Taxi Cab, Chevrolet Tavera Taxi Cab and Mercedes Benz Taxi Cab. The luxury cars such as
Mercedes and BMWs are few and limited to a few cities. This is because OlaPrime is currently
functional only in 6 Tier 1 cities as of now.
Till recently Ola could be booked through the mobile app, the website as well as through phone
calls but as of August 2015, OlaCabs has gone app only. The Ola app is available on Android,
IOS and Windows operating systems which cover over 99% of global smartphone users. This is
because users preferred the seamless app experience to any other mode of booking. This strategic
move allows Ola to deliver a consistent one-touch booking experience as well as improved ride
experience across all aspects like navigation, payments, safety and feedback. It also avoids all
the problems and confusion created due to various channels of booking. This had led to a number
of bad user experiences with Ola.
They have also recently implemented 2G enhancements in the app will also allow users in
smaller towns and low network areas to access Ola without compromising on speed and ease of
access. These enhancements allow swift loading of the app on 2G networks. This is an important
move as it provides a strong foundation to their app only strategy.
The phone booking number is now the support line for feedback and complaints.

Ola cabs have been promoting there brand with the campaign called Roti, Kapda, Makaan and
Transport campaign. They are on an aggressive promotion spree through:

1st Ride free Campaign- through this it gave free first ride to people who downloaded the
app. It was promoted through banners, hoardings and text messages.(1)

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Weekly offers and Coupon codes(2)

Through Referral Codes people who already are Ola users can refer Ola to new
customers and avail exciting offers


Multi-Channel Campaign called #Chalo Niklo which aimed to position Ola as the goto
transport platform of choice for immediate and transport travel(3)

Through Cup Shup Campaign Ola aimed to launch its new platform for booking KaaliPeeli Taxi in Mumbai. A total of 10 lacs Ola branded cups were distributed at several
premium tea locations, offices and colleges across various locations of Mumbai. Also Ola
branded trays and t-shirts were provided to a few premium tea vendors who were in a
business of delivering tea in nearby offices. Delivery boys were given t-shirts and carried
a tray to increase awareness(4)

Other Methods

Through affiliate marketing by tying up with other companies for e.g. Freecharge(5)

Through its mobile wallet Ola Money it tied up with Oyo Rooms, Lenskart, Saavn,
Zopper, BusIndia and Zoomin
Celebrity endorsements: Ola used celebrities like Soha Ali Khan and Yami Gautam
as brand ambassadors for their brand.

Public relations
Ola uses social networking sites such as Facebook and Twitter to engage its customers. It uses
these sites to communicate the events they are sponsoring, wishing their customers on various
occasions and also any activity they are planning. For e.g. they provided 40 people free cab ride
for registering for their initiative Under the Stars. They also popularized their #Chalo Niklo
campaign through Twitter and Facebook.

The People in Ola include the employees and the Management. The Management includes the
founders Bhavish Agarwal and Ankit Bhati both being IIT Bombay alumni. Ola introduced and
pioneered the concept of driver entrepreneurship. They help the driver buying his own car. Hence
the driver in case of Ola is an entrepreneur. The behavior of the driver is of utmost importance as

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it helps in customer retention and also in word of mouth publicity. Since the driver in case of Ola
is the owner, generally he is polite, professional and friendly.

Consumer side
The consumer books the OlaCab through Ola app. Until recently Ola bookings were also
possible through their website or a phone line but Ola has decided to go app-only. To do this, the
consumer must have an Ola account. When he logs in through the Ola account, his location is
shown on the map and he is allowed to choose the kind of ride he wants. He can choose between
OlaMini and OlaSedan. OlaPrime which is targeted at the premium segment is available only in
a few larger cities such as Delhi. According to the customers needs he can choose Ride Now or
Ride Later. The Ride Now options show how far the cab is in minutes. The Ride Later option is
used for advanced bookings.
The customer can also get a ride estimate if he enters his destination. The customer then applies
any coupons that he has and proceeds to confirm his booking. The driver of the cab is intimated
and is given the name and number of the customer. Once he arrives at the point of pick-up, the
customer receives a text message regarding the same.
Post ride the customer has to rate the ride and the driver out of five stars and provide suggestions
to improve Olas service.
Cab Owner side
The Ola Cab owner has to register himself as well as his driver with Ola. The driver must have a
valid license for commercial vehicles and the car must be registered as a commercial vehicle.
They both undergo 3 days of separate training of what Ola represents. The owners training is
more inclusive of the pricing model and profit sharing basis of Ola whereas the drivers training
is about basic etiquette. The driver is then given a clean shirt and trouser according to his size.
He is also provided with a tablet like device which is used as a meter as well as to find
customers. An Ambipur fragrance is also given to be kept in the car.
Ola charges the cab owners for the first service - about 12 of the billing that come through the
app. The second service is free and then the profit sharing is more in the Cab owners favor as
the more cab seeking customers Ola has, the more the number of cab owners would be willing to
register with them and currently Ola is not looking for profits but for higher market share.
Ola cabs are tracked in real time. When the customer books a cab. The driver is notified through
his device. He will only be notified if he is logged in. The driver has the right to reject the
customer but if he does so he has to pay a penalty of Rs200. Therefore according to protocol
whenever he is on break, no matter how short a break it is, or is not available to take customers,
he is supposed to log out.
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Ola maintains the Owners account by recording the fares collected by him. If the customer pays
the driver in cash then the account would show a negative balance as the Owner owes Ola money
whereas if the customer pays through coupons or OlaMoney then the balance would be in
positive as now it is Ola who owes the cab owner money.

Physical Evidence
The service can be verified on the spot in the case of Ola. If the driver turns up late the customer
gets to know immediately and can complain to the customer care representative. He can also rate
the driver with the help of the mandatory rating feedback mechanism. The ambience inside the
car which includes air conditioning, cleanliness, music etc. can also be verified on the spot.

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