How Does Ola Make Money?

Index:

Prelude:

Ola is India’s first ride-hailing company that provides peer-to-peer ridesharing and ride-hailing services. Ola was founded by Bhavish Aggarwal and Ankit Bhati in 2010 about nine years back. Currently, Ola is used across 150+ cities across India, Australia, UK, and New Zealand and connects over 1.5 million drivers.

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How Ola Works?

Ola works in the same way as other cab aggregator companies like Uber, Lyft, etc. You can book the cab either via their Mobile App or website.

Firstly, the user selects their location or can be detected automatically. After that one has to select their destination, vehicle type, and their payment mode, soon after that user’s desired vehicle type which is closest to him/her will be booked. Later, the booked driver will pick the user from the pickup location at approximately the shown time on the Ola App/website.

Revenue Streams of Ola:

Ola works on a commission basis they take the commission from the total fare of the trip which ranges from about 15-20% depending on the type of vehicle and the region. Apart from this Ola also provide incentives to drivers as per their driving hours, their year of joining, and ratings.

In recent years, Ola also tried to open up some other sources of revenue like:

Ola Money:

Ola Money was introduced to make payments across travel easier and cashless. Ola introduced Ola Money along with Zipcash, where you can transfer any amount to your Ola Money wallet from your debit/credit cards and can transfer any credit to anyone with an Ola Money wallet. 

With the introduction of Ola Corporate, Ola is trying to make a place in the B2B market. This help Business to easily manage their employees travels expenses. Also, it helps Ola to acquire a consistent amount of customer base from its corporate clients.

 

 

 

Ola Electric Mobility:

Ola Electric Mobility was started in 2017 as a movement to electrify mobility in India by introducing electric vehicles. Ola electric was started on a pilot-scale in Nagpur(India). 

Ola Pedal:

Ola launches the Ola pedal(dockless bike-sharing service) at a pilot scale at IIT Kanpur and IIT Madras. Ola Pedal is an App-based cycle enables with GPS which makes them safe and secure.

Ola Prime Play:

Ola has partnered with Sony Liv, Microsoft, and Apple Music for providing in-cab entertainment services and charge money as per that.

Ola Electric Scooter:

Valuation and Funding:

Ola has raised about $3.8 billion in funding in about 23 rounds from about 21 lead investors. Currently, Ola has a valuation of about $6.2 billion.

Source: Crunchbase

Ola Competitors:

As Ola has expanded to multiple countries so they have several local and international competitors:

• Uber
• Gett
• Didi
• Lyft
• Grab
• BlaBlaCar
• Go-Jek

Ola Statistics:

• Ola has more than 200 million customers.
• Ola provides about 1 billion rides every year.
• Ola has more than 24million monthly active users in India.
• In 2020 Ola has about 2.5 million driver-partners.
• Ola gives more than a 1.5million riders on a daily basis.
• By 2020 Ola has given more than 3million rides in the U.K.
• In 2020 Ola has about 11000 driver-partners in the U.K.
• In 2020 Ola has about 7000 driver-partners in Sydney Australia.
• Ola Electric reported a valuation of about $1 billion.
• By 2020 Ola has raised more than $3.8 billion.
• About 500 merchants accept Ola Money.
• About 40 million people use Ola Wallet.
• Ola owns about 80% market share of Indian ride services.

Facts and Updates:

• In 2021 Ola Electric is looking to raise $300 million for marketing and distribution ahead of its launch.
• Ola is looking to expand Ola Corporate in U.K, Australia, and New Zealand.

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