Future of Ola and Uber cabs in India- Perish or Change

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Uber and Ola comparison
Cab services comparison

Ola and Uber made the dream of calling and hailing cabs from the preferred location of the customers come true.

India is a fast growing developing country. New technologies have evolved around the time. Smartphones have made it easier to access smart apps. And smart apps have made our daily routines easier.

But, there has always been a problem with commutation and transport with unavailability of taxis, denial of drivers and hard access to avail one.

Bhavish Agarwal, founder of Ola cab saw the opportunity of merging technology with transport and deliver good value to a segment of customers.

Easy “pick up and drop” feature enabled them to swipe an ample amount of customer base to form a new market. But, recent trends are not falling into places and creating a turmoil in the industry

Founded by Bhavish Agarwal in the year 2010, ola has seen much appreciation from its customers and acquired 44% of the Indian market with Uber pertaining to 50%.

Ola vs Uber
Ola Market Share

The reason behind the giant chunk of the pie is “Happy customers”.

Who wouldn’t like to avail a cab with just a tap on the screen or calling them up and cab will pick them up from their location and drop to specified location?

Everything was going well for them as Ola and Uber fought among each other to capture market but now the scene has changed. Ola and Uber are not fighting with each other but among themselves.

Ola and Uber in their vision of making their customers happy and acquire a better market left some of their own people dissatisfied. Those are the real stakeholders. The People because of whom Ola and Uber are on Road

But, are the major stake holders – the drivers, the cab owners happy with them? May be not.

On 17 March 2018, Ola and Uber drivers have threatened to go on an indefinite strike in key cities like Mumbai, New Delhi, Bengaluru, Hyderabad, Pune among other cities.

Now the question is why are the Ola drivers upset?

  • Unable to meet the daily quota –  Daily quota of minimum 14 rides is not met.Also, increased competition among the cabs and stagnant customer base, the number of rides per cab fell short.
  • Huge investment low returns – The hype of Ola and Uber made many purchase cars. Cab Owners’ expected return of 1.5 lakh per month being a distant dream.
  • Bias towards company cars than driver owned cars – It is alleged that the companies give more priorities to the company owned cars thus making the driver-owned cars short of the daily quotas”.
  • Slump in business – There has been a fall of more than 30% in the business

“If our demands are not met, we will go on an indefinite strike” says Sanjay Naik, Maharashtra Navnirman Vahatuk Sena.

He also added, “Other unions of Ola and Uber nodded to the strike”

Is this news authentic or speculative?

Ola
Ola Cabs

As per Times of India interview with Sanjay Naik attributes to the authenticity of the indefinite strike. Though there are no comments from the companies.

Uber spokesperson remarked this to be speculative.

Howsoever, the future of these companies are truly in danger. They have to find what to do in retain the business.

What might be the changes to be adopted?

Change is most important aspect of any business. Management gurus have themselves said and targeted on improving

Ola and Uber are going through tough times. So it is advisable to the management to look out for the aspects of business.

It is not conclusive if these app-based cab companies will thrive or perish. But if they do not change the environment, optimal for both drivers and customers the future will be in danger.

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Future of Ola and Uber cabs in India | Perish or Change |
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Future of Ola and Uber cabs in India | Perish or Change |
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Ola and Uber made the dream of calling and hailing cabs from the preferred location of the customers come true.India is a fast growing developing country. New technologies have evolved around the time. Smartphones have made it easier to access smart apps. And smart apps have made our daily routines easier.But, there has always been a problem with commutation and transport with unavailability of taxis, denial of drivers and hard access to avail one.
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