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Business Model of Online Cab Aggregators in India |
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| To succeed, the online cab aggregators had to create value for both their retail customers (i.e. cab riders) and their cab chauffeurs / drivers. Amit Jain, Vice-president, Uber India, said, “We want to make transportation available for everyone and cabs may not always be the most affordable option for all segments.” The primary target market for the online cab aggregators were value-conscious customers. On the launch of Ola Micro , Pranay Jivrajka, Chief Operating Officer at Ola, said, “(It) will be the most pocket friendly mode of intra-city cab travel.”14 |
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| The emergence of the aggregator business model heralded the rise of an on-¬demand economy, also known as “Gig Economy”, according to industry observers. A gig economy represented flexible employment where the worker was more of a contractor than an employee. The gig economy model was highly scalable because it was cost efficient, they said. The burden of owning, licensing, insuring, and maintaining a car rested with the driver, not the aggregators. Bhavish Aggarwal, CEO of Ola Cabs, said, .. |
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| To tackle supply chain issues, cut production costs, and cater to the fast growing demand for its products in India, OnePlus decided to manufacture its devices locally in India. .. |
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Exhibit I:Standing of Online Cab Aggregators in India (as of Year 2015)
Exhibit II: Economic Battle: Should You Buy A Car or Should You Hire A Car?
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