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Old 5th August 2015, 10:29   #1
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Default Ola: 7.5 lakh rides per day!

Recently, online taxi aggregator Ola, went the app only way. Now the company claims to have a market-share 80% of the online space by the number of registered vehicles (including autorickshaws). In November 2014, Ola commanded about 60% market-share.This figure includes the share of TaxiForSure as well. Ola acquired TaxiForSure earlier this year.

Ola: 7.5 lakh rides per day!-ola.jpg

There is no breakdown of the Ola-TaxiForSure share provided by Ola. The market share data was based on “available or estimated data of registered vehicles on respective platforms”. Meru claims that it had 20,000 registered vehicles across 7 cities. Uber did not to disclose its numbers.

Ola also claims that it does 7,50,000 rides every day and has over 250,000 vehicles. It is adding 1,500 vehicles daily.

Earlier this year, Ola mentioned that TaxiForSure had 24,000 cars on its platform and the total number of vehicles was about 1,50,000. Ola claimed to be doing around 2,00,000 rides every day in January 2015 with a month on month growth rate of 35%. Calculations show that the resulting number for July 2015 would be 15,13,358 - approximately twice as much as Ola is claiming at the moment.

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Other calculations reveals that if 2,00,000 cars make up 80%, Meru, which has a 12% market-share, has 30,000 vehicles in the 7 cities that it operates in. Uber, which has a 4% market-share and operates in 18 cities, has 10,000 vehicles.

Source: Medianama
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Old 5th August 2015, 10:53   #2
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Default re: Ola: 7.5 lakh rides per day!

That is a whopping market share. I wonder what it would be if they take autorickshaws out of the equation.
Uber has stranglehold on the Cochin app taxi biz that's for sure (of course it small compared to a mega market like Bangalore). I think it must be something like 90%. I understand (from the drivers) they have well over a thousand taxis in town here.
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Old 5th August 2015, 11:17   #3
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Default re: Ola: 7.5 lakh rides per day!

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Originally Posted by Aditya View Post
Now the company claims to have a market-share 80% of the online space by the number of registered vehicles (including autorickshaws).
Considering that many vehicles operate on multiple platforms, this is one terribly confusing metric. Often the same driver is registered on Uber and Ola and also has his own private business. So how do you distinguish the cars to calculate market share in terms of number of cars? The real measure would be number of rides on Ola vs. the overall market, and the revenue collected as proportion of market.
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Old 5th August 2015, 12:11   #4
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Default re: Ola: 7.5 lakh rides per day!

How do they determine the size of the market to claim how much share they have. Since this is an unorganized sector, no one can claim the exact market share I believe. May be they are using their own methods. Not sure how authentic it is though.
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Old 5th August 2015, 12:31   #5
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Default re: Ola: 7.5 lakh rides per day!

Yes, it is complete market domination.

But, I would be more interested in the percentage of satisfied customers among the 7.5L rides. Customer complaints are increasing at an exponential level and OLA has been turning a deaf ear to all of them.
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Old 5th August 2015, 12:32   #6
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Default re: Ola: 7.5 lakh rides per day!

I have seen more vehicles available on Ola compared to Uber in Pune (at any point of time, at any location).
Plus with the option that doesn't force to you use Paytm or other 3rd party dung, it just feels more convenient to me.
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Old 5th August 2015, 13:03   #7
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Default re: Ola: 7.5 lakh rides per day!

Wow and that is the one that I have never used. Let me get cracking on the app.

Seriously this is a huge market share and not ideal for the market also considering the schemes that Uber has been running and the early presence of Meru this is very surprising.
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Old 5th August 2015, 15:29   #8
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Default re: Ola: 7.5 lakh rides per day!

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Originally Posted by reverse_gear View Post
Considering that many vehicles operate on multiple platforms, this is one terribly confusing metric. Often the same driver is registered on Uber and Ola and also has his own private business. So how do you distinguish the cars to calculate market share in terms of number of cars? The real measure would be number of rides on Ola vs. the overall market, and the revenue collected as proportion of market.
Exactly my thoughts. Most of the drivers are enrolled on both Ola and Uber. It will be very difficult to gauge the true market share of either of these players. More so, if it is funded by either of them.
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Old 5th August 2015, 15:39   #9
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Default re: Ola: 7.5 lakh rides per day!

Most VC funded companies exaggerate their numbers. This is no different. Ola might have a higher market share than Uber, but according to the article it is 80% compared to 4% for Uber. Such a vast gap is ridiculous. Again, calculating market share based on number of registered vehicles is misleading.
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Old 5th August 2015, 18:30   #10
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Default re: Ola: 7.5 lakh rides per day!

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Originally Posted by Shadowspy View Post
Most VC funded companies exaggerate their numbers. This is no different. Ola might have a higher market share than Uber, but according to the article it is 80% compared to 4% for Uber. Such a vast gap is ridiculous. Again, calculating market share based on number of registered vehicles is misleading.
I second you on this.Not sure for the rest of the country but there were definitely more number of UBERs available in Kolkata than OLA during the heavy rains a week back.

Same at Hyderabad, somehow I always find a UberGO, when OLAMini are not available. The rate at UBER is also more competitive than OLA, service quality are more or less the same.

Even if OLA is leading the market share the gap will definitely be a lot lesser in the not so distant future going by the aggressive campaigning of UBER.(They are giving free rides worth 500 now on referral)
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Old 5th August 2015, 18:54   #11
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Default re: Ola: 7.5 lakh rides per day!

That is very strange because the Bangalore market looks to me to be dominated by Uber. In fact at work out of every 10 people using a cab, 6-7 would user Uber regularly. The only reason this gap might happen is because Uber as of now is limited to far lesser number of cities than Ola and hence a lot of markets Ola/TFS are gaining market share without any competition. Also the option to pay by cash in Ola also helps especially in smaller cities and for people who prefer to use cash.
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Old 20th October 2015, 17:00   #12
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Default Re: Ola: 7.5 lakh rides per day!

Man, the sheer size ! Ola gets 10 lakh ride requests per day and the company is targeting 30 lakh by April 2016. To put things in perspective, that's like 13% of what India's entire railway system carries per day - source.

Quote:
Taxi aggregator Ola is looking at a three-fold rise in the number of daily bookings through its platform to three million by April next year.

Currently, the Bengaluru-based company has operations in 102 cities with over 3.25 lakh vehicles are registered on its platform.

"The company Ola has grown three times its size over the last six months from April 2015. We expect to clock three million booking requests a day, by April 2016," it added.

Currently, Ola adds up to 1,500 vehicles on its platform on a daily basis.
Source & Full Article
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Old 20th October 2015, 17:52   #13
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Default Re: Ola: 7.5 lakh rides per day!

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Originally Posted by GTO View Post
Man, the sheer size ! Ola gets 10 lakh ride requests per day and the company is targeting 30 lakh by April 2016. To put things in perspective, that's like 13% of what India's entire railway system carries per day - source.



Source & Full Article
I think this is being set up for a perfect bubble rupture soon.

A large number of bookings are for the hatchback version:
  • Customer pays Rs 7/8 per km and often as low as Rs 50 for upto 4km.
  • Cabbie gets a minimum of Rs 235/10km or 14 Rs/km (source: recent driver conversation)
  • On top of it there are the incentives - upto Rs 3000/day or thereabouts.
Once the incentives end and the rates go to a long term sustainable rate of Rs 18-20/km (something many cabbies say), how many lakh rides per day will happen is anyone's guess.


let's not forget - According to the sources, Uber was losing at least Rs 500 per ride on an average, and Ola about Rs 420 per ride, including the incentives to passengers. (courtesy discounts and 3000 rs per day incentive)



Of course the early adopters would have emancipated themselves for good, moving from employees / daily hirers + wage earners to car/business owners but the absolutely last ones (or the spendthrift ones) may be caught in a debt trap of sorts.
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Old 20th October 2015, 17:54   #14
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Default Re: Ola: 7.5 lakh rides per day!

Quote:
Originally Posted by GTO View Post
Man, the sheer size ! Ola gets 10 lakh ride requests per day and the company is targeting 30 lakh by April 2016. To put things in perspective, that's like 13% of what India's entire railway system carries per day - source.



Source & Full Article
Haven't read the article completely, but the numbers do paint an interesting picture (I agree, these are over simplistic calculations)

3.25 lakh vehicles in 102 cities - roughly 3000 cabs per city.
10 lakh ride requests in 102 cities - roughly 10,000 trips in a city.
So, roughly, 3 rides for 1 cab in a day.

Add to that, 1500 new vehicles per day in 102 cities - roughly 15 per day in every city.

This target might also include expansion to some new cities. The metros are already getting overcrowded with Ola/Uber cabs and there might be less and less trips available for drivers soon.
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Old 20th October 2015, 23:40   #15
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Default Re: Ola: 7.5 lakh rides per day!

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Originally Posted by Dry Ice View Post
Haven't read the article completely, but the numbers do paint an interesting picture (I agree, these are over simplistic calculations)

3.25 lakh vehicles in 102 cities - roughly 3000 cabs per city.
10 lakh ride requests in 102 cities - roughly 10,000 trips in a city.
So, roughly, 3 rides for 1 cab in a day.

Add to that, 1500 new vehicles per day in 102 cities - roughly 15 per day in every city.

This target might also include expansion to some new cities. The metros are already getting overcrowded with Ola/Uber cabs and there might be less and less trips available for drivers soon.
That's clearly not the case in Chennai. Be it Ola or Uber , between 5-11 PM , there are no cabs available at most times . I have seen this at almost all parts of the city. What is even more sickening is that Ola raises the surge price to 2X,3X all the time during theevenings where as with Uber its quite rare and even if there is a surge price its usually 1.2X or 1.4 X.

This lack of availability has forced me to book Ola autos. The official auto fares in Chennai are more than UberGo .

Anyone who's been to Chennai will know that hailing an auto normally without Ola app is asking for extortion. Those rides will cost you more than Ola prime or Uber Black if you don't bargain with them and hence is not an option.

Last edited by Ragavsr : 20th October 2015 at 23:45.
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