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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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Krishna, a full time bank-clerk, turned into a part-time taxi driver and earned more than Rs. 50,000 per month. Krishna, who had worked as a bank clerk for five years, left his job as he did not like having to work 8-10 hours and or to follow others’ instructions. Instead, he chose to work on his own terms. So, in 2015, he purchased a sedan through bank finance, and joined the bandwagon of drivers opting to work for an India-based cab aggregator company, Ola Cabs, owned by ANI Technologies Pvt. Ltd. (ANI). In the first month itself, he earned around Rs. 35,000 which was more than double his pay in the bank. Soon, he understood the dynamics of the online cab industry. So, as of 2016, on an average, he took around Rs. 50,000 back home. Ola, according to Krishna, also topped up with an additional incentive of Rs. 250 per completed trip during peak hours. And if the drivers maintained excellent ratings, they also earned incentives. Krishna said, “I am doing services for Ola customers. If our relationship doesn’t work out, I will switch to Uber or Meru. I am getting calls from them every day.” ...
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There were millions of cab drivers like Krishna in India, who preferred to work for online cab aggregators. The online cab aggregator industry in India was led by a few technological start-ups like Ola, TaxiForSure (which later merged with Ola), Uber, and Meru. Online cab aggregators provided a technological platform through a mobile app which connected the drivers with the customers. They were not the same as radio taxi companies. For instance, online cab aggregators generally did not own any vehicles or pay a salary to the drivers