Ola - Transforming Ola to Consumer / User based Business Model

Today’s Brew is for Ola
Brew date: 9th August
Type: Served Hot, to be Consumed a.s.a.p. 

Transforming Ola to a Consumer Fulfillment company offering Complete Mobility enablement solutions

The intent of this brew to transform Ola to being a Platform based Complete Fulfillment player offering various mobility solutions, but also to extend its platform business model to further enable and encourage Consumer Mobility.

OlaCabs, popularly known as Ola, is a popular mobile app for personal transportation in India. Ola, now based of Bangalore, started as an online cab aggregator in Mumbai, is among the fastest growing businesses in India.

Ola provides different types of cab service ranging from economic to luxury travel. The cabs can be reserved through a web browser or a mobile app. This cab service supports both cash and cashless payment options with Ola money. It claims to clock an average of more than 150,000 bookings per day and commands 60 percent of the market share in India

To understand the business model of Ola, check out the following links:

The Brew will analyze Ola on the following parameters:
a) Business Analysis
1) Transforming OLA to a Complete Mobility Solutions Company:
Currently, Ola provides transport and rental services to the consumers for the needs of mobility, the thought is to expand Ola’s horizon to a Mobility solutions company rather than limiting itself to being a service provider. A Mobility solutions not only Enablement Solution to Users with the aspects of the mobility needs like Routes, density, ETA, Cost of Travel but as well marries it with Fulfillment Solution needs of Consumer behaviors of Convenience, Urgency to reach, Economy (effectively in the dimensions of Time, Money, and Experience) effectively different options of its aggregation services – Cabs, Buses, Car Pools, Taxi Pools, Autos etc.

By offering the mobility solutions, Ola can effectively increase its reach and consumption to Users and Consumers having Mobility Needs, along with the Capability of its fulfillment by offering an a Complete physical solution of Cabs, Buses, Car Pools, Cab Pools, Autos etc (by being an open aggregated platform for the fulfillment services).

The point here being, that essentially, Ola is a technology company solving the mobility needs of the Consumers, incidentally offering the Cab services for a better Consumer behaviours affecting Convenience, Economy and time factors vis a vis other mobility solutions offered by it.

In the existing scenario, Ola’s role is more of a Lifestyle solutions firm offering Convenience as a primary solution (with existing transport solution), however by being a Mobility Solutions Company, along with offering Lifestyle solutions, Ola plays an active role in altering behavior, by integrating and understanding the mobility needs of Consumers and giving them effective solutions to optimize on Consumer’s personal metrics.

2) Unlocking the existing capacities in the system:
In the current scenario, every player catering to fulfillment solution of mobility needs (the cab segment) is building new capacities and offering the solution of convenience and/or price, effectively leading to a zero sum game which will eventually lead to a structural disequilibrium (and not just economic), due to excessive building of capacities and the zero sum equations.

Ola, by being offering a complete mobility solutions to the Consumers, focuses less on adding new capacities, and using the existing resource pool to optimality, though in its initial phase is largely driven by a complete new solution for the entire market to benchmark and baseline the consumer parameters with. However, post such scaling and indexing, Ola should ideally focus on leveraging the existing resources by optimizing the service parameters to Ola’s benchmarks. The due benefits apart from building an ecosystem offering complete solutions to consumer are minimal time scalability, growth hack and a platform enablement player.

3) Transforming OLA to a Consumer Fulfillment Company by being an intra – city platform of mobility solutions.
For Ola, being a tech company offering mobility solutions to the Consumers and Users, its very essential to understand Consumer & User Behaviours with respect to desires, needs and factors which trigger the need of mobility (anything outside home classifies for a Mobility need and hence a solution).

Effectively, Ola should ideally focus on enabling Users and Consumers with an aggregated platform (enabled by 3rd party platform players and direct service providers), which motivates, and triggers the needs of Mobility (both ways, Consumer getting to needs or needs being delivered Consumers) by offering Consumer Centric solutions as per Consumer’s needs and behaviours.

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