The Untold Story of a Startup Giant: ; Ola 

1. The SPARK: How It All Started:

Bhavish Aggarwal

Bhavish was born in Ludhiana, Punjab, and is an alumnus of IIT Bombay having received his B.Tech in Computer Science in 2008. After his graduation, Bhavish spent two years working for Microsoft Research in Bangalore. 

On a cab ride to Bandipur, where there were no cabs available in Delhi, Bhavish’s idea of Ola emerged. 

Bhavish is the Co-founder and CEO of Ola. He has been central in forming the company’s vision and strategy.

2. Ankit Bhati

•  Ankit is from Rajasthan, India and is also an IIT Bombay alumnus, where he met Bhavish.
•  Ankit was briefly employed in the corporate world before he joined forces with Bhavish on his startup project.
•  Ankit is the Co-Founder and CTO of Ola. He has been key in building out the technology and the processes that power all of Ola’s services.
•  The inception of Ola was fueled by frustration in finding transport options that are convenient and trustworthy in India. That led Bhavish and Ankit to decide on building an alternate way of reliable commuting.
• A trip planning company was established in December 2010 called Olatrip.com. It was officially transformed to Ola Cabs in January 2011.
• Bhavish and Ankit are still in charge of Innovation at Ola and are working towards furthering the company’s services.

They aspire to create mobility for a billion residents of India and make transportation for every citizen of India easy and cheap. 

2. INCEPTION PHASE:

Funding Trouble

Just like several other startups, Ola encountered a problem when it came to arranging initial funds. The potential investors exhibited disbelief in the taxi agglomeration in India.

Bhavish and Ankit started the company with their own savings, thus the company was bootstrapped at the very beginning.

They made an investment when they received their first investment from Rehan Yar Khan of Orios Venture Partners in 2011.

Day to Day Business Challenges

Ola had to overcome a myriad of hurdles in terms of legal rules and policies. They had difficulties with government policies and local taxi associations.

Recruitment of Drivers: Several Drivers were not familiar with the registering onto the platform which became a huge issue Convincing drivers to become onboard with app-based solutions faded away from modeling bricks-and- mortar norms.

Constructing a powerful and scalable technological platform was especially important but demanding. He was excellent – working round the clock on the application and backend systems. 

Market Rivalry

Ola grapples with fierce competition from the already established Meru Cabs and recent startups like Uber.

Distinction: Focusing itself in providing good customer services + based on technology that now included being able to notify up to 10 clients wanting to be picked.

Pivotal Points

The purchase of TaxiForSure in 2015 was a deciding event that aided Ola in strengthening its foothold in the market.

Rounds of Financing: Receiving support from investors such as SoftBank, Tiger Global, and Sequoia Capital enabled Ola to raise sufficient funds to increase operations.

Technical Innovations: Apart from that, Ola also made an edge over its peers through tech advancements and innovations such as Ola Kiosk (in-cabin entertainment), and Ola Money (electronic wallet).

Without a doubt, the road to success was not smooth, nevertheless, their commitment and unique ideology enabled them to tackle those hurdles and position Ola as one of the key player in Indian context of ride-hailing market.

3. Scaling up: Startup to Market Leader

Emphasis On Technology Right From The Start

Mobile Application: Ola tweaked its strategy in June 2012 by unveiling its mobile application that allowed users to conveniently book cabs at the touch of a few buttons. This easy experience in an era where getting a cab from a taxi operator was a hassle was revolutionary

Ola progressively rolled out features such as live route maps, estimates of how much the journey would cost and a mode to pay by all means, which greatly improved the overall experience to the customer.

Securing Funding

• Investors Interest: Ola benefitted from the interest of experienced venture capitalists. A series of initial rounds by Tiger Global, Matrix Partners India, and SoftBank provided the funds necessary for quick scaling and expansion.
• Adaptation and Innovation- Ola Electric: With the awareness of the increasing global demand for sustainable transportation, Ola Electric started with electric vehicles and remaining infrastructure.
• Ola Money: They started with a digital wallet Ola Money which allowed them to perform cashless transactions together with offering other financial services. 
• Adapting to Market Conditions Regulatory Compliance: Ola was able to deal with the challenges in the regulations by complying with the local authorities and the regulations.
• COVID-19 Response: In the case of the pandemic, Ola was able to pivot through by using safety measures that were in line with government regulations for instance providing protective kits to their drivers as well as delivery of groceries.
• Current Position and Vision- Market Leadership: Presently, Ola is a market leader in India’s ride hailing industry with an innovative approach to service delivery while making the customers the central focus.
• Future Vision: The focus of Ola is to change the way how Indian cities are mobile in a sustainable way while using the skills of technology and satisfaction of their customers. Ola has indeed come this far thanks to the support of its founders as well as its team that has constantly put in both strategic moves.

4. Ola versus Uber in India

In India, the ride-hailing industry is dominated by Ola and Uber who are in constant competition with one another. With over 100 million users, Ola has 59% of the market share while Uber has 41% with 93 million users. Both companies provide a number of services such as bike and car rental, food deliveries, etc. Electric vehicles and digital wallets are the new services Ola offers, with Uber still only focusing on offering premium and expanding internationally. Ola and Uber have their own social media marketing strategies allowing them to diversify their provided services. 

Olas strong fusion with kab drivers, expansion through acquisitions, and notable war room marketing have supported the company throughout the years. While Uber is touted as an international powerhouse with a great deal of glitz, captivating commercials, and savvy marketing. Both companies made substantial changes to the Indian Ride-sharing market, despite numerous hurdles including regulations, driver recruitment, and other issues.

5.Electric Revolution:

• The co-founder of ola cabs, Bhavish Aggarwal has established Ola Electric in 2017.
• The aim of the company is to create a more green and sustainable future for transport in India through electrification of the vehicle and reduction of emissions.
• In Tamil Nadu, an electric scooter manufacturing facility called the Future Factory was built and was claimed to be the largest in the world by Ola electrics.
• Ola Electric appliances introduced a wider variety of electric scooters such as the S1, S1 Air, S1 Pro which caters to customer needs and preferences.
• Ola Electric Service hasopened 4000 stores across the Indian sub continent, earlier, it was not as easier to purchase an EV. Because it was not easily available in 3,4 stores. Now reaching 4000 stores ensures, easy availability across the Indian subcontinent making economic transactions seamless. 
• The community of Ola S1 followed by the further investment in technology ringed up a staggering 5.5 billion green kilometers. As a result enabling a commulative saving of over 130 crore in the span. Working towards the commitment of reducing the carbon emission and pollution.
• Ola Electric is the third largest company in India with a share of 35, in the electric, two wheeler market, after capturing  Netsmart and tools, with its collaborated strategy reached over 35% of the market share. 
• EVs and other Electric vehicles, are always in demand and thanks to Ola Electric as they have integrated and developed string technology verticals when it comes to electric batteries and automobile manufacturing.
• Ola Electric decided to expand their tools and services with the introduction of durable and cost-effective Ola Gig and the Ola S1 carrier series, enabling simple and easy solutions for commercial and personal use.
• Ola Electric decided to expand their research and development  facilities across the globe, beginning with the UK and US.

There is a clear gap between the pollution and carbon emissions in India and around the World thanks to OLA Electric’s dedication  towards sustainable transport, they will rank up and help in contributing towards a greener and cleaner future of India and assist the World in the EV revolution. 

6.Impact on driver and riders

Impact on Riders

• Cost Savings: Compared to when a rider uses a traditional petrol car, it has been noted that the operating costs go down for an EV. This in returns reduced the trip cost. 
• Environmental Benefits: Switching to EV’s means reducing the carbon emissions and air pollution, which is improving the environment and is the responsibility of a rider.
• Comfort and Technology: Ola Electric has certainly outdone themselves with the Ola S1 Electric Scooter, Soft Dry Technology, Bluetooth, and fast-charging capabilities; it sure makes the ride better.

Impact on the Drivers 

• Lower Operation Costs: Much like petrol vehicles, electric vehicles are cheaper in maintenance as well as fuel costs, nett increase to the earnings of the drivers.
• Incentives and Support: Financial support along with electric vehicle training is offered to the drivers making the shift by Ola Electric as an Incentive.
• Sustainable Income: With the wave of eco sensitive vehicles increasing, drivers get access to a more reliable and sustainable income source.

Moving forward, Rides and drivers have seemed to have been benefited when speaking about the promotion of electric mobility by Ola Electric, hence meaning cost efficient and eco friendly and or long-term portable solutions.

7.Challenges & Criticism

The securities and Exchange Board of India (SEBI) had focused their regulatory Sorge on Ola Electric instead of trying to settle the issues among the shareholders. The main cause of concern was when the founder, Bhavish Aggarwal, announced all there was to know about the expansion plans and got on a social media platform without the stock exchange having all of the information.

Such behaviour led to a violation of SEBI’s disclosure regulations and brought a notice from the regulator. SEBI emphasized Ola Electric not to take this violation lightly and asked Ola Electric to enhance their compliance in a way that these kinds of issues are never faced again.

Management and Executive Changes

Ola Electric has been facing a loss of senior executives which has made the filling adminstrative tasks more difficult. Additionally, Suvonil Chatterjee (Chief Technology and Product Officer) and Anshul Khandelwal (Chief Marketing Officer) have been key exits.

Such high profile exits have indirectly led to dislocation in strategic management processes such as planning and implementation and made issues such as structural unity and operational competitiveness more difficult to achieve.

Consumer Complaints

Ola Electric has also had its share of customers complaints ranging from the subpar quality of vehicles to a poor after sales service. With complaints relating to vehicle use and maintenance, many customers reported having a bad experience. These issues were also noticed by the Central Consumer Protection Authority (CCPA) and a show cause notice was issued to Ola Electric for violating the customary rights of the consumers, through an unlawful advertisement and trade practices.

Market Competition

Ola Electric faces stiff competition from Bajaj Auto and TVS Motors, despite having an early lead in the two wheeler market early on. This has posed a threat to them in the Indian electric market. The competitive landscape remains a challenge for them.

Ola Electric was unable to retain its market share due to the emergence of its competitors, such as the Chetak by Bajaj. Alongside this, expansionary growth tactics they engaged with such as increasing the number of service centers by 3200 were unable to help address the issues persistently raised by consumers, forcing their operations and finances under duress.

In response to SEBI’s Warning, Ola Electric has also engaged in significant measures to protect and help them build a culture of compliance, further preventing any potential future risks. Implementing internal controls and protocols so that sensitive information remains undisclosed to the stock exchanges, the company is conducting training sessions for employees and executives on compliance.

Strengthening Management

To address the instability caused by the recent executive exits, Ola Electric is actively engaged in restructuring its leadership team. The company is in the process of hiring experienced industry professionals to fill the vacant positions and bring fresh perspectives. They are also investing in leadership development programs to nurture internal talent and ensure a robust succession plan. Additionally, Ola Electric is focusing on improving employee engagement and retention through initiatives like enhanced career development opportunities, employee wellness programs, and a positive work culture.

Improving Consumer Experience

Recognizing the critical importance of consumer satisfaction, Ola Electric has undertaken several measures to address the complaints and improve the overall consumer experience. They have ramped up their quality control processes to ensure that their vehicles meet high standards of performance and reliability. To enhance after-sales support, Ola Electric has expanded its network of service centers and launched a 24/7 customer support helpline. They are also offering extended warranties and maintenance packages to build customer trust and loyalty.

Revamping Market Strategy

To regain their competitive edge, Ola Electric is focusing on continuous product innovation. They are investing in research and development to introduce new models with advanced features and improved performance. The company is also forming strategic partnerships with other industry players, technology firms, and research institutions to drive innovation and expand their market reach. Ola Electric’s emphasis on sustainable and eco-friendly transportation is a key component of their market positioning, aimed at attracting environmentally conscious consumers.

Sustainability and Brand Building

Ola Electric strives hard to position itself as a sustainability advocate through electric vehicles and their marketing campaigns. Their tagline ‘Let’s Go Electric’ appeals to the green perception of consumers.

A direct outcome of Ola Electric’s strategy has been the sustained investment in the brand such as interaction with consumers on social media, implementing inventive marketing campaigns and engaging in public relations efforts to increase brand awareness.

Towards the end of the year, investors began to reassess Ola Electric’s growth potential, blaming it for the problems encountered in 2020. The company’s proactive support and intensive engagement culminated effectively in reversing that perception over the following year as verticals were developed and expansion was prioritized especially considering regulatory compliance, managing hiring and a strong focus on the electric vehicle market.Implemented branding strategy is expected to help reposition the Ola Electric brand.

Such complex situations regard high competition in the industry and consumer preferences fitting perfectly with Ola’s determination to reach the highest possible standards in customer satisfaction and brand loyalty. The future of urban transportation solutions, especially in India, is going to be propelled by the technological transformation and sustainability focus that Ola Electric has taken and is consistently refining.

9. Ola’s vision for future

Needless to say, India has its fair share of headscratching challenges, some in the form of politics, bureaucratic red tape, and even social forms of hurdles to businesses that are functional in nature. This, however, unfortunately, had all been the case for many years now. Nonetheless, a 500-acre “future factory” located three hours away from the hustle and from the horrendous traffic of Bengaluru, does provide a glimpse into the Indian manufacturing realm if for some reason everything does end up working as it should.

This is the Ola FutureFactory which is located in the Krishnagiri district of Tamil Nadu which is just south of Bengaluru been, a hub for tech firms that have helped send big players into the global marketplace.

Ola e – scooters which are futuristic and India’s goal to become a superpower in being a leader in e-mobility, are produced at the future factory. In this light, they are not particularly innovators as they were among the finalists, many Indian companies moved in slightly before.

But, what gives the Ola undertaking its exceptional character is the scope, level, concept, need- and the fact that the entire project has a workforce that is almost exclusively women. The goal of the factory is to produce an e-scooter in every two seconds which will be its maximum capacity.

AI & female workforce combine of great EV aims of the Ola FutureFactory thus deeming the future to be present.

What makes Ola FutureFactory in TN stands out is While being its size, scale, ambition, demand — the most astonishing part is the almost complete provision of women workers On the site of the company.

This is the Ola FutureFactory in the Krishnagiri district of Tamil Nadu, just across the border from Bengaluru district in neighbouring Karnataka where technology companies have for decades now helped global giants march into the future.

The Ola FutureFactory manufactures e-scooters or electric scooters, a mobility solution of the future that is fast becoming our present. In that sense, it isn’t exactly a pioneer, as other Indian companies hopped on to ride this wave a little earlier.

But what makes the Ola project unique is its size, scale, ambition, demand — and the fact that it is almost entirely staffed by women workers. At full capacity, this facility aims to manufacture one e-scooter every two seconds.

It all started only in January this year when the Ola Group, more famous for its ridesharing services across Indian cities, bought the land from the Tamil Nadu government. Last week, just 11 months down the line, the company rolled out the first 100 Ola S1 e-scooters.

To call it a race against time for Ola’s Group CEO and Chairman Bhavish Aggarwal and his team would be a gross understatement.

‘Over a million bookings’

Such is the response for Ola’s e-scooters that despite existing options in the market, Ola’s S1 and S1 Pro already have over a million reservations, according to Aggarwal. The option to reserve an Ola e-scooter is still open on its app and website.

The response, as Aggarwal described, was overwhelming for India’s own homegrown mobility giant. Ola..