Mpr

MINOR PROJECT ON

“A COMPARATIVE STUDY OF CUSTOMER

SATISFACTION TOWARDS THE TRANSPORTATION SERVICE WITH SPECIAL REFERENCE TO TAXI

COMPANIES – OLA CABS AND UBER CABS”

SUBMITTED BY: TANYA GANDHI BBA (B&I-2nd _{shift) (III} rd _Semester)

ENROLLMENT NO.

MAHARAJA SURAJMAL INSTITUTE SESSION (2014-2017)

Affiliated to Guru Gobind Singh Indraprastha University (GGSIPU), Dwarka, Delhi.

ACKNOWLEDGEMENT

I take this opportunity to express my

profound gratitude and deep regards to

my guide and supporter DR. PREETI

MALIK for her exemplary guidance,

monitoring and constant encouragement

throughout the course of this thesis. The

blessing, help and guidance given by her

time to time shall carry me a long way in

the journey of life on which I am about to

embark. I am obliged to the faculty

members of MAHARAJA SURAJMAL

INSTITUTE, for the valuable information

provided by them in their respective

fields. I am grateful to their cooperation

during the period of my assignment.

Lastly, I thank my almighty, my parents,

and brother for their constant

encouragement without which this

assignment would not be possible.

STUDENT

DECLARATION

I declare that the whole information of

this minor project report is totally pure,

true and based on organization site,

place, customer information and website

information.

I hereby declare that the project report

entitled “COMPARITIVE ANALYSIS OF

OLA CABS AND UBER CABS” has been

completed and submitted by me and is

original and is the outcome of my own

efforts and the guidance and suggestion

received by DR.PREETI MALIK.

MRS. PREETI MALIK (BBA III SEMESTER)

S.N O 1. PARTICULARS CHAPTER-1 *INTRODUCTION  Objective  Research Methodology PAGE NO. 2. CHAPTER-2

*

*COMPARISON BETWEEN OLA CABS AND UBER CABS

3.

4.

CHAPTER-3

*ANALYSIS AND INTERPRETATION OF THE DATA *CONCLUSIONS AND RECOMMENDATIONS

.

CONTENTS

CHAPTER-1

This project is all about the customer satisfaction towards the transportation industries- Ola cabs and uber cabs. Also, research has been done and questionnaire has been made to find positive and negative aspects of the two. The qualities of entrepreneurship, growth and the services provided have helped both the companies to survive in the market. Both are using their war chest to offer incentives to drivers and a discounted fare to

riders.Ola has emerged as the clear leader in terms of market share. Ola, the company had a 60 per cent share in November 2014.Uber, which is now the world's most valued technology start-up at $50 billion, just had five per cent of the market.

They differ in some cases and converge in many. Uber is a pure play app-based service and has a westernised template. One can book a cab only through the app. No cash payments are accepted globally though the

company recently made a significant exception in India. Customers can pay through the Paytm wallet, credit

cards, debit cards, as also cash in a few cities. Whereas, Ola cabs provides other services also. Ola introduced Ola Cafe, a food delivery service - customers can order

through the app and Ola cabs will deliver the order in quick time.



To conduct survey analysis on the

consumer preference on Ola cabs and

Uber cabs in India.



To find out which factors are more

preferred by the customers while

choosing among the two.



To analyze the reasons behind

their success, especially among the

youth of the country.



To compare their market share in

the transportation industry.



To shed light on different aspects

that a service based transportation

industry must follow in order to

increase its market share for being on

a continuous growth path.

RESEARCH

METHODOLOGY

Research methodology is a way to solve

the research problem in a systematic

manner. It may understand as a science

of studying how the research is done

significantly. The methodology may

differ from problem to problem, yet the

basic approach towards the research

remains the same.

There are two types of

data:-Primary data – primary data is that

data which is collected for the first time

and is also called “first hand data”

These data are basically observed and

collected by the researcher for the first

time. Examples are – questionnaires,

surveys etc.

Secondary data – secondary data are

those data which are collected by the

other persons for his/her own purpose

and when others use that data for

solving their purpose, it becomes

secondary data , i.e., data collected by

one person becomes secondary data for

the other.

DATA COLLECTION:



Secondary data was collected from

media publishing and internet.



Primary data was collected with

the help of questionnaire and friends,

relatives were contacted personally

for collecting the primary data.



A sample of 50 respondents has

CHAPTER –

2

COMPANY

PROFILE: OLA

CABS

Ola Cabs, popularly known as Ola, is a mobile application for

personal transportation in India. Ola started as an online cab aggregator in Mumbai, now based out of Bangalore and is

among the fastest growing businesses in India consumer space has sparked a new market opportunity.

SERVICES PROVIDED

Ola provides different types of cab service ranging from

economic to luxury travel. The cabs are reserved through a web browser or a mobile app. This cab service supports both cash

and cashless payment options with Ola money. It claims to clock an average of more than 150,000 bookings per day and

commands 60 percent of the market share in India.

VISION OF OLA CABS:-

The vision behind Ola cabs is to provide hassle-free, reliable and technology-efficient car rental service to Indians. In a deeply fragmented and highly unpredictable market of car/taxi services, there is a significant shortage of easy and comfortable on-ground options for transportation be it within a city or outside. Also, the inventory utilization among small cab operators (ownership of 2-5 cabs) in India is an abysmal 40-2-50%. Cab owners benefit from the Ola Cabs network and technology platform and that in turn helps them procure customers and enhance their income through better inventory utilization.In Mumbai, inventory utilization levels have gone up to 70% for cars that are on the Ola cabs platform. Ola cabs provide convenient, transparent and quick cab services, both car rental and point-to-point, by leveraging technology to provide a uniform and highly customer-centric experience.

EMPLOYEE RELATION

Ola Cabs has tied up with Avanti Learning Centers for a good cause. The drivers who are associated with Ola can get their children studying in the ninth and tenth standard to the learning centre and avail free education.

We only select cars which meet our defined standards to be a part of our fleet. We also conduct regular service audits, train and certify drivers and do thorough background checks of both

Ola Gurukul will start off with a batch of 500 students in Mumbai. The initiative will be extended to provide free stationary, books and other apparatus for the top performing students. The

student’s program will be held after school so that the students get the much needed attention while also saving on tuition classes costs.

TECHNOLOGICAL STABILITY

The aim is to use technology to bring efficiency and superior customer experience to the car rental industry. The company Endeavour to bring convenience, price transparency and standardization to consumers booking car rentals and cab services. There is also a freely downloadable mobile app using which customers can book cabs and monitor their position by the built-in GPS system. Ola cabs have a dedicated customer care centre to address all queries of our customers. Technology has enabled us to adhere to the 10 minute service level agreement (SLA) which the company provides to all our customers.

The company also uses ‘heat maps’ to efficiently manage the demand and supply of cabs in various parts of a city at different points in time. The traffic alerts using information from various sources including social media help in guiding the drivers to reach the destination in the shortest possible time. Both these help in effective inventory management for Ola cabs. The company plans to scale quickly as we have an asset-light and technology-focused business model. Also, with the capital raised from Tiger Global, Ola cabs plans to significantly ramp up our technology infrastructure.

It raised $330k in its initial round of funding on April 21, 2011. The company received Series A funding of $5 million from Tiger

Global Management; Series B funding of USD 20 million

from Matrix Partners and Tiger Global; Series C funding of $41.5 million from Stead view Capital, Sequoia Capital and its existing investors. In Series D round of funding on Oct 25, 2014, it raised $210 million from Soft Bank Internet and Media Inc. and its

existing investors.

Despite failing to break even in 5 years, Ola Cabs managed to attract new investment on the back of expanding top line and balance sheet.

Ola's growth in India has been massive, skyrocketing and exemplary for many startups. Taxi app Ola has become the third-most valuable

venture-backed company in India after snagging funding of $400

million, or Rs 2,500 crore, from a consortium of investors. From being a basic taxi hailing app to becoming third-most valuable venture-backed company in India, Ola's growth trajectory involves many fold of an untold story.

Ola Cabs

Parent Company ANI Technologies Pvt Ltd

Category Service provider for taxi hiring (Aggregator)

Sector Transport & Logistics

Tagline/ Slogan Chalo Niklo

USP Standardized customer experience & Price transparency

STP

Segment People who mobile from one place to another for any purpose

Target Group Customers who are in need of cabs instantly

SWOT ANALYSIS

*A SWOT analysis is a structured planning method used to evaluate the strengths, weaknesses, opportunities and threats involved in a project or in a business venture.

*A SWOT analysis can be carried out for a product, place, industry or person. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieve that objective.

*Identification of SWOTs is important because they

can inform later steps in planning to achieve the

objective.

 Strength : characteristics of the business or project that give it an advantage over others.

 Weaknesses: characteristics that place the business or project at a disadvantage relative to others.

 Opportunities: elements that the project could exploit to its advantage.

 Threats : elements in the environment that could cause trouble for the business or project

SWOT Analysis

Strength

1. First mover advantage as a taxi aggregator in India 2. Acquisition of Taxi For Sure made it No. 1 in India 3. Top of the mind service

4. High awareness due to aggressive TV, online and print media marketing 5.Huge customer base & due to network effect it is increasing

6. Rapid expansion and online application

7. Multiple rounds of VC investments have made the brand financially strong

Weakness

1. Drivers are the face of the company and hence their misbehavior directly affects the brand image

2. While the demand is huge, amount of cash burning is huge and monetization is very difficult

Opportunit

y

1. Unorganized market is huge (~90%) and hence potential is high 2.Increasing internet penetration & smart phone users

3. Rising disposable income

4. Shifting of consumers towards convenience creates huge demand 5. Acquisition of smaller players

Threats

1. Rising competition

2. Uber has deep pocket and hence can burn cash heavily 3. Presence of many national players

4. Absence of clear government regulations in developing countries

5. Future is unclear due to lack of regulations and Customer loyalty is less in this industry

Competition

Competito

2. Meru cabs (India) 3. Easy cabs

rs

Uber Technologies Inc. is an American

international transportation network

company headquartered in San Francisco, California. The company develops, markets and operates the Uber mobile app, which allows consumers with smart phones to submit a trip request which is then routed to Uber drivers who use their own cars. Since Uber's launch, several other companies have copied its business model, a trend that has come to be referred to as "Uberification".

Uber was founded as "UberCab" by Travis

Kalanick and Garrett Camp in 2009 and the app was released the following June. Beginning in 2012, Uber expanded internationally. In 2014, it experimented with carpooling features and made other updates. By mid-2015, Uber was estimated to be worth $50B. The legality of Uber has been challenged by governments and taxi companies, who allege that its use of drivers who are not licensed to drive taxicabs is unsafe and illegal.

DEVELOPMENT HISTORY

During the initial development of the Uber app, the company created a think tank consisting of a nuclear physicist, a computational neurosurgeon, and a

machinery expert who worked on predicting demand for private hire car drivers and where demand is

highest. Later in 2012, Uber launched its Uber Garage initiative in Chicago. The experimental program allowed Uber to partner with local taxi cab drivers, alerting them when an app user requested a ride. The company also introduced uberX in 2012, a service option which allows

local drivers to respond to notifications on the Uber app by driving customers in their own non-luxury cars. During 2013, Uber offered its first non-car option when it

launched UBERChopper rides from New York City to the Hamptons for $3000 each. In August 2014, Uber

launched UberPOOL, a carpooling service, in San

Francisco and UberFRESH, a lunch delivery service, in Santa Monica.

Uber CEO Travis Kalanick has spoken about his desire to eventually move to using self-driving cars for Uber

vehicles. By May 2015 the company had hired a large number of CMU researchers from the vehicle autonomy department, to work at Uber's Advanced Technologies Center in Pittsburgh.

PRICING AND PAYMENTS

Uber's pricing is similar to that of metered taxis, although all hiring and payment is handled exclusively through Uber and not with the driver personally. In some cities, if the Uber car is travelling at a speed greater than 11 mph (18 km/h), the price is calculated on a distance basis; otherwise, the price is calculated on a time basis. At the end of a ride, the complete fare is automatically billed to the customer's credit card. Uber has said its prices are the premium that the customers pay for a cab service that is not only reliable, but also punctual and comfortable. In May 2015, Uber started testing cash payments in India. The pilot project was started in the Indian city Hyderabad. In September 2015, Uber tied up with Airtel India to allow

cab users to pay using Airtel mobile wallet service. It also allows users to use Airtel 4G data at no charges.

RECEPTION

Uber faces competition from lower-cost real-time ridesharing startups such as Lyft, Sidecar, Ola

Cabs and Taxi. To compete at lower price levels, Uber introduced UberGo on Nov 19, 2014, UberTaxi

(partnerships with local taxi commissions) and UberX

(non-luxury cars such as Toyota Prius hybrids). This move led to dissatisfaction among existing Uber limo drivers who saw their earnings decrease.

In 2011 Marc Andreessen expressed interest in investing in Uber. He told CNET, "Uber is software eats taxis. [...] It's a killer experience. You watch the car on the map on your phone as it makes its way to you." The same year, the New York Times called Uber "clever but costly", noting the cars are "particularly nice by livery standards" and pickup times were slow compared with traditional New York City taxis and black cars. In 2013 USA Today named Uber its tech company of the year.

However, it has also received negative reception. In

October 2014, Uber received an "F" rating from the Better Business Bureau (BBB), which cited complaints over

unexpectedly high charges.

Uber gives consumers a choice between regulated taxi cab companies and other forms of transportation and can potentially provide drivers with "flexible and independent jobs”. Users can track the car picking them up on their smart phone, which allows them to know when it will arrive. A receipt will be automatically sent to their email. As Uber does not require cars to be hailed, this means that it can more easily pick up customers in less built up neighborhoods. For this reason, it has been said that Uber helps the poor by making it easier for them to get a taxi. It also helps reduce congestion as "because Ubers can’t accept street hails, they do much less unnecessary driving-around than either yellow cabs (who are cruising for hails) or individuals (who are looking for a parking spot)." This assumes that there is no extra traffic created by people who would otherwise have used public

transport or walked.

SAFETY

On August 4, 2014, the company announced the

scheduled removal of a driver from the service pending a

medical review, after the driver suffered an epileptic

seizure while driving that resulted in an accident with a pedestrian in San Francisco. The 56-year-old driver was hospitalized after hitting three parked cars and then a man on the sidewalk; an Uber spokesperson said in the announcement that the driver "has an outstanding record of service and safety with no prior incidents." In

December 2014, the New York Times reported on

concerns regarding the manner in which the Uber's app notifies drivers about new requests for pick-up from

customers. When a customer makes a request, drivers

are notified on an official Uber mobile app and provided

information about where the customer is. In order to accept the request, the driver has approximately 15

seconds to tap their phone to accept the request. An Uber

driver reported that drivers can be temporarily suspended

for ignoring these requests. Deborah Hersman of

the National Transportation Safety Board criticized the 15-second system, saying that it presents a significant

distraction to drivers, as drivers are financially motivated to respond to fares while driving. In response, Uber has stated that the app "was designed with safety in mind," and that drivers are not required to physically look at the device to accept a fare.

*The uber makes cities more accessible for

people by seamlessly connecting to drivers.

*Launched in 2009 it operates in more than 130

cities across 40 countries.

Uber’s revenue is doubling every six months

*According to its last round of funding , it is valued

at $18 billions.

Uber

Parent Company Uber Cab

Category Service provider for taxi hiring(aggregator)

Sector Transport & Logistics

Tagline/ Slogan Where lifestyle meets logistics

USP

Offering seamless travel with the rider walking away after arriving at his destination

STP

Segment People who mobile from one place to another for any purpose

Target Group

Customers who are in need of cabs instantly & Early and late majority of business professionals

Positioning

Evolving the way the world moves; Making cities more accessible; Bringing people and their cities closer

SWOT Analysis

Strength

1. Global player with presence in over 50 countries and 200 cities 2. Serves as a market place and hence fixed investment is less 3. Gained a premium brand image especially in developing countries 4. Enhanced user experience & higher customer satisfaction

5. First mover advantage globally

6. Supreme technology with less bugs compared to its competitors 7. High awareness due to excellent advertising and marketing

8. Deep pockets & hence can burn cash heavily to acquire market share

Weakness

1. Drivers are the face of the company and hence their misbehavior directly affects the brand image

2. While the demand is huge, amount of cash burning is huge and monetization is very difficult currently

Opportunit

y

1. Unorganized market is huge in developing countries and hence huge potential is there

2. Increasing internet penetration & smart phone users 3. Rising disposable income

4. Shifting of consumers towards convenience creates huge demand

Threats

1. Rising competition

2. Presence of many national players

3. Absence of clear government regulations in developing countries 4. Future is unclear due to lack of regulations

5. Customer loyalty is less in this industry

SWOT ANALYSIS

Competito

rs

INDIA’S

INDIA’S

TAXI WAR

TAXI WAR

UBER v/s OLA

UBER v/s OLA

MARKET OVERVIEW

MARKET OVERVIEW

INDIA’S POPULATION:

INDIA’S POPULATION:

1.311 BILLION RESIDENTS

1.311 BILLION RESIDENTS

FOUNDERS:

FOUNDERS:

TRAVIS KALANICK

TRAVIS KALANICK

BHAVISH

BHAVISH

AGGARWAL

AGGARWAL

BUSINESS

BUSINESS

NUMBER OF RIDES NUMBER OF

NUMBER OF RIDES NUMBER OF

RIDES

RIDES

2, 00,000

2, 00,000 7,

50,000

Operates in India with Operates in India with More More than 2, 00,000 daily rides. Than 7, 50,000 daily rides.

Computer science drop out from university of California,

Computer science engineering from Indian institute of technology, Mumbai.

SERVICES

SERVICES

Personal transport foofooff

Personal transport foofooff

EXPANSION

EXPANSION

Food

delivery

Person

al

transpo

Grocery

ordering

18

18

100

100

FUNDING

FUNDING

Raised US$1 billion for Raised US$676 million

in India. in India.

STRENGTHS

STRENGTHS

*Customizes offering to *Good understanding of

Suit local Indians. Local market.

*Huge spending power. *Ubiquitous branding.

*Early transaction.

WEAKNESS

WEAKNESS

Brand is late mover in Human Resource

heavy

India. Model.

POPULARITY

MOST FOLLOWED ON TWITTER

FAN BASED ON FACEBOOK

SHARED CHALLENGES

SHARED CHALLENGES

Regulatory challenges like ban or

taxi- hailing in some cities. Drivers don’t know the way

around the city.

In light of a sexual assault incident involving a driver, both start ups must

work extra hard to ensure

passenger safety in India.

Drivers either not turning up or cancelling booking

Ola and Uber are the two most popular, apps based cab services in India. But the issue is that as a consumer this question is imminent to arise in your mind that which out of the two is best. Below I have tried my best to compare the services of both on various scales. Let’s find out which one is scoring better.

1. Ola cabs were founded in 2010 whereas Uber cab

services started its operations in India from Bangalore in 2013. So as compared to Ola, Uber is new for the Indian roads. Uber is a US based company-operating in many countries of the world.

2. The main strategy of Ola lies in the fact that it

provides three different kinds of cab services for different kinds of pockets. Ola provides- luxury sedans for premium segments. It also provides services in medium and mini range. It is said that Ola’s mini range is almost equivalent to the fares of autos. On the contrary, Uber plays in only two

levels-one is for premium segment and the other one is Uber X Ride for lower segments. But Uber X Ride is expensive when you will compare with Ola’s lower range services.

3. With Ola you have lot of options while making

payments-even you can pay by cash whereas payment terms are entirely cashless with Uber cab services.

4. With Ola you have lots of booking options- you

can book their cab services either through website, mobile apps or through telephonic conversation whereas Uber booking options is limited only till Android and iOS devices.

5. You can book Ola cabs in advance prior to your

ride whereas Uber provides on the spot booking. 6. There is a general perception in the market that

Uber cab drivers follow specific rules and strict code of conduct while interacting with the customers, whereas Ola’s cab drivers lack such kind of courtesy and mannerisms.

7. The entire concept, mechanism and operations of

Ola cabs services are localized as it is entirely Indian whereas Uber follows global model.

So if your primary target is simply to reach your destination then under such situations Ola cabs are the best, as their drivers are very well informed about the local places- they can locate easily even some of the most difficult addresses in India. On the other hand if your priority is good and enjoyable experience- smooth talking drivers then you can go with Uber cabs. They will make you feel like king!

They both are good and great in their own way-they care enough about their customers’ needs. They both have a great reputation in the market. Now it’s up to you- which one you want to choose depending upon your preferences and taste.

CHAPTER-4

CONCLUSIONS

After the completion of project I have seen the different aspects of this Project

Also I hav e gained some ne w e xperience about the consumer research . While surv eying I hav e

met a large number people, with di fferent perception s, wi th different nature, and as a result of this I have

learnt a lot of things like how to talk with the different people with different behavior. We have benefited a lot and this will

definitely help me a lot in the future.

Also the outcome that came out from this research work

was:-Also the outcome that came out

from this research work

was:- MORE PEOPLE PREFER OLA CABS THAN UBER CABS.  OLA CABS IS A MARKET LEADER WITH 54.04%

MARKET SHARE.

 WHEREAS, UBER CABS ONLY 40.54% OF THE MARKET SHARE.

 REVENUES OF OLA CABS HAVE GROWN MORE THAN 10 TIMES OVER THE PAST 4 YEARS AND NOW ARE THE BIGGEST CAB BOOKING SERVICE PROVIDER IN THE COMPANY.

 IT IS TARGETING TO HAVE ON BOARD A MILLION DRIVING PARTNERS IN THREE YEARS. CURENTLY. IT HAS 35 ,000 CABS ON ITS PLATFORM.

THROUGH THIS RESEARCH, I ALSO CAME

TO KNOW –

 1st preference will go to FACILITIES  2nd preference will go to PRICE

 3rd preference will go to TIME TAKEN

Bibliography

 www.olacabs.com

 www.wikipedia.com

ANNEXURE

QUESTIONNAIRE

GENDER: PROFESSION:

(NOTE: Your information will be kept confidential and will not be disclosed to any entity.)

1. Are you a regular customer of App/Net based Taxi booking services?

YES NO

2. Which cab service you opted for? OLA CABS

UBER CABS OTHER

2. How often do you use these services? WEEKLY

MONTHLY

ONCE IN A YEAR

3. What is the most important aspect you look for when you select a cab service?

CAB AVAILABILITY (timely presence of cab at the time of booking)

QUALITY CARS BEING PROVIDED

EXTRA SERVICES TO CUSTOMERS( Wi-Fi, offers on booking etc)

5. What is the easiest way to pay for ride? CASH

NET BANKING CREDIT CARDS

6. What is the Fare bracket most feasible for general commuters? 150-200

200-350 350-500

7. Would you prefer giving an extra charge to the driver if you are happy with the service?

YES, I would pay extra charge.

NO, I would not pay any extra charge.

7. In recent times, there have been cases of Security for the commuters. According to you has there been any safety upgrade that took place in these services.

YES (safety up gradation took place ) NO ( no steps have been taken)

8. Ola Cabs offer a base charge of 100. Is it justified according to you?

YES. It is justified. NO. it is not justified.

9. Has the recent case of Uber can driver molesting a woman hampered

its reputation ? Would you be hesitant to go for Uber again? YES

NO

10.How long do you think ideally a cab should take in reaching you after

you hire it online? 5-10 minutes

More than 10 mints. Not more than 30 mints.

11. Will you go for the same cab service next time?

NO

Thank you so much for your time!

If you have any comments or queries, please email me on

[email protected]