Growth Strategies of Ola: To Diversify or Not

This case is about the growth strategies followed by Ola, one of the leading taxi aggregators in India, to expand its presence across the country. When the company started its operations in the year 2010, the taxi sector in India was mostly unorganized with individual taxi drivers owning and maintaining their cars. Ola pioneered a unique business model in India under which the company did not own its fleet of cars. Instead, it entered into tie-ups with independent taxi drivers and took a commission for every ride booked through the company.

The model was successful in the Indian market as customers were able to book cabs online easily or through the Ola apps. Customers were also happy that they did not have to argue with cab drivers on the cab fares as the rates were fixed beforehand by Ola and the fare to be charged for a ride was calculated remotely and communicated electronically to the driver at the end of the journey. In the years that followed, the company expanded its services by launching new services catering to different sections of society. It relied on making the best use of the latest technology like the Internet and smartphones to provide a good experience to its customers...