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Case Code: MKTG356
Case Length: 9 Pages 
Period: 2015-2016   
Pub Date: 2017
Teaching Note: Available
Organization : Ola; Uber; Meru
Industry : Online cab aggregators
Countries : India 
Themes: Customer value propositions  
/Business Model 
/Marketplace Player
Case Studies  
Business Strategy
Human Resource Management
IT and Systems
Leadership & Entrepreneurship

Business Model of Online Cab Aggregators in India

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The online cab aggregators generated revenue through a pay¬-for¬-performance model. In terms of capital investment, online cab aggregator startups like Uber and Ola required little capital investment to set up the business. As they did not need to buy and maintain a fleet of cars, online cab aggregators partnered with private cab/taxi owners and provided them with modern technology like GPS devices and an internet calling device that facilitated cab booking, etc. In return, to provide access to the technology platform, aggregators levied a small token sum on the taxi owners. These aggregators charged the cab owners / drivers a fixed commission for the revenue they generated. Private taxi owners also found it a win-win game as they get benefitted by being able to get access to aggregated consumer demand across the city. The demand for cab booking usually included services like local pickup and drops, outstation travel, and full day/half day rentals. As of 2015, Uber and Ola were the leading online cab aggregator companies operating in India ....
Marketing Case Studies | Case Study in Management, Operations, Strategies, Business Environment, Case Studies
Marketing Case Studies | Case Study in Management, Operations, Strategies, Business Environment, Case Studies
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While Ola, Uber, and Meru were all aggregators, their approaches were different (Refer to Exhibit I for their market standing). They differed in some ways and were similar in others. While Ola and Uber were pure play app-­based services – i.e. customers could book a cab only through the mobile app – Meru allowed customers to book cabs through its mobile app and also through its website or call centers. To receive payments, in addition to cash, Ola and Meru cabs allowed their customers to make payments through debit cards, credit cards, net banking, and digital wallets. Uber, on the other hand, accepted payments only through the Paytm Wallet only and in cash in a few cities.

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