Ola Consumer, formerly Ola Cabs, is an Indian
transportation company that provides
ride-hailing services and operates other business verticals such as financial services and
cloud kitchens. It is headquartered in
Bangalore
Bengaluru, also known as Bangalore (List of renamed places in India#Karnataka, its official name until 1 November 2014), is the Capital city, capital and largest city of the southern States and union territories of India, Indian state of Kar ...
, and operates in 250+ Indian cities.
A variety of
venture capitalists
Venture capital (VC) is a form of private equity financing provided by firms or funds to start-up company, startup, early-stage, and emerging companies, that have been deemed to have high growth potential or that have demonstrated high growth in ...
including
Softbank
is a Japanese multinational Investment company, investment holding company headquartered in Minato, Tokyo, that focuses on investment management. The group primarily invests in companies operating in technology that offer goods and services ...
have large stakes in the company.
In January 2018, Ola extended into its first overseas market,
Australia
Australia, officially the Commonwealth of Australia, is a country comprising mainland Australia, the mainland of the Australia (continent), Australian continent, the island of Tasmania and list of islands of Australia, numerous smaller isl ...
, and launched in
New Zealand
New Zealand () is an island country in the southwestern Pacific Ocean. It consists of two main landmasses—the North Island () and the South Island ()—and List of islands of New Zealand, over 600 smaller islands. It is the List of isla ...
in September 2018. In March 2019, Ola began its operations in the
UK. In April 2024, the company announced that it is exiting all of its international markets to focus on the Indian market. In August 2024, the company rebranded itself to Ola Consumer.
History
In 2010, Bhavish Aggarwal established Olatrip.com, a trip planning company operating in the Delhi region. In January 2011, recognizing a growing demand for on-demand cab services, Aggarwal and co-founder Ankit Bhati launched Ola Cabs, a taxi aggregation firm.
It originally allowed users to make bookings via phone call, before introducing its
mobile app
A mobile application or app is a computer program or software application designed to run on a mobile device such as a smartphone, phone, tablet computer, tablet, or smartwatch, watch. Mobile applications often stand in contrast to desktop appli ...
in June 2012. By early 2015, Ola reportedly had the biggest market share, followed by TaxiForSure,
Meru Cabs, and
Uber
Uber Technologies, Inc. is an American multinational transportation company that provides Ridesharing company, ride-hailing services, courier services, food delivery, and freight transport. It is headquartered in San Francisco, California, a ...
, which was launched in 2013.
In March 2015, Ola Cabs acquired rival TaxiForSure for 1,237 crore (US$200 million). In June 2015, Ola integrated TaxiForSure services on the Ola mobile application. In August 2015, Ola was reported to be operating in over 100 cities and became an app-only service. Later in the year in November, Ola acquired Geotagg, a trip-planning applications company, for an undisclosed sum.
In a move to expand beyond cab aggregation, Ola acquired the struggling foodtech company
Foodpanda India with an eye on leveraging the growing food delivery segment business in December 2017. In April 2018, Ola acquired
Ridlr (formerly Traffline), a public transport ticketing app. Later in August 2018, Ola financed Series A funding of the scooter rent startup Vogo, and again in December, invested another $100 million.
In 2019, more than 10,000 drivers applied both in online and offline mode, ahead of its launch in
London
London is the Capital city, capital and List of urban areas in the United Kingdom, largest city of both England and the United Kingdom, with a population of in . London metropolitan area, Its wider metropolitan area is the largest in Wester ...
. In February 2020, Ola launched its taxi-hailing services in London with over 25,000 drivers registered.
Ola posted its first-ever operating profit of in the financial year 2020–21.
In April 2024, Ola announced it was pulling out of all international markets – UK, Australia and New Zealand markets with only a few days notice.
In May 2024, Ola migrated from
Microsoft Azure
Microsoft Azure, or just Azure ( /ˈæʒər, ˈeɪʒər/ ''AZH-ər, AY-zhər'', UK also /ˈæzjʊər, ˈeɪzjʊər/ ''AZ-ure, AY-zure''), is the cloud computing platform developed by Microsoft. It has management, access and development of ...
to its own cloud platform Krutrim. In July 2024, Ola shifted from
Google Maps
Google Maps is a web mapping platform and consumer application offered by Google. It offers satellite imagery, aerial photography, street maps, 360° interactive panorama, interactive panoramic views of streets (Google Street View, Street View ...
to a new in-house mapping tool, Ola Maps.
On 18 August 2024, Ola Cabs was rebranded as Ola Consumer.
Subsidiaries and services
Apart from the ride-hailing business Ola Cabs, the holding company ANI Technologies operates Ola Fleet, Ola Financial Services, and Ola Foods.
As of September 2019, it also owns a 6% stake in the electric scooter manufacturing company
Ola Electric
Ola Electric Mobility Limited is an Indian electric vehicle manufacturer headquartered in Bengaluru. Founded in 2017 by Bhavish Aggarwal, the company designs and manufactures Electric motorcycles and scooters, electric two-wheelers, including the ...
.
Ride hailing
Ola Cabs offers different levels of service, ranging from economic to luxury travel. The cabs are reserved through a
mobile app
A mobile application or app is a computer program or software application designed to run on a mobile device such as a smartphone, phone, tablet computer, tablet, or smartwatch, watch. Mobile applications often stand in contrast to desktop appli ...
and also through their website, and the service accepts both cash and online payments. It claims to clock an average of more than 150,000 bookings per day and commands 60% of the market share in
India
India, officially the Republic of India, is a country in South Asia. It is the List of countries and dependencies by area, seventh-largest country by area; the List of countries by population (United Nations), most populous country since ...
as of 2014. As of 2019, the company has expanded to a network of more than 1.5 million drivers across 250 cities.
In November 2014, Ola diversified to incorporate
auto rickshaw
An auto rickshaw is a motorized version of the pulled rickshaw or cycle rickshaw. Most have three wheels and do not tilt. They are known by many other terms in various countries, including three-wheeler, Adaidaita Sahu, Keke-napep, Maruwa, auto, ...
s on a trial basis in
Bengaluru
Bengaluru, also known as Bangalore (List of renamed places in India#Karnataka, its official name until 1 November 2014), is the Capital city, capital and largest city of the southern States and union territories of India, Indian state of Kar ...
. After the trial phase, Ola Auto expanded to other cities like
Delhi
Delhi, officially the National Capital Territory (NCT) of Delhi, is a city and a union territory of India containing New Delhi, the capital of India. Straddling the Yamuna river, but spread chiefly to the west, or beyond its Bank (geography ...
,
Pune
Pune ( ; , ISO 15919, ISO: ), previously spelled in English as Poona (List of renamed Indian cities and states#Maharashtra, the official name until 1978), is a city in the state of Maharashtra in the Deccan Plateau, Deccan plateau in Western ...
and
Chennai
Chennai, also known as Madras (List of renamed places in India#Tamil Nadu, its official name until 1996), is the capital city, capital and List of cities in Tamil Nadu by population, largest city of Tamil Nadu, the southernmost states and ...
, starting in December 2014, and also in
Hyderabad
Hyderabad is the capital and largest city of the Indian state of Telangana. It occupies on the Deccan Plateau along the banks of the Musi River (India), Musi River, in the northern part of Southern India. With an average altitude of , much ...
.
In March 2016, it introduced
bike taxi service on its platform. Ola has faced legal troubles in many states where operating bike taxis is illegal.
Ola Fleet
In January 2015, Ola acquired radio taxi company GCabs for an undisclosed amount and renamed it as Ola Fleet Technologies. Ola Fleet is engaged in leasing of cabs to partnered drivers.
Ola Foods
Ola entered
food delivery segment in March 2015 under the name Ola Cafe, but stopped the services in March 2016.
It began offering food delivery services again in December 2017 with the acquisition of
Foodpanda's Indian subsidiary for an undisclosed sum. Ola also announced that it would infuse up to $200 million in the food delivery unit.
While the number of users and orders went up in 2018 due to discounts and offers, the numbers dropped sharply in early 2019. In June 2019, it stopped food delivery service and laid off most of its 1,500 delivery executives. However, it continued to operate Foodpanda's
cloud kitchen business.
As of 2021, Ola Foods operates more than 50 cloud kitchens, including its flagship brand called Khichdi Experiment, in six cities.
Ola Financial Services
In November 2015, Ola launched its
mobile payment
Mobile payment, also referred to as mobile money, mobile money transfer and mobile wallet, is any of various payment processing services operated under financial regulations and performed from or via a mobile device. Instead of paying with cas ...
s and
wallet
A wallet is a flat case or pouch, often used to carry small personal items such as physical currency, debit cards, and credit cards; identification documents such as driving licence, identification card, club card; photographs, transit pass, b ...
product called OlaMoney. OlaMoney is owned by Ola Financial Services, which also offers other financial products such as
buy now pay later, insurance,
co-branded credit cards and vehicle loans in partnership with other financial institutions.
Ola Maps
In October 2021, Ola acquired GeoSpoc, a Pune-based
geospatial technology company. Founder
Bhavish Aggarwal wrote in a blogpost that the acquisition would help the company convert
satellite imagery
Satellite images (also Earth observation imagery, spaceborne photography, or simply satellite photo) are images of Earth collected by imaging satellites operated by governments and businesses around the world. Satellite imaging companies sell im ...
into
web maps. In July 2024, Ola launched Ola Maps as alternative to
Google Maps
Google Maps is a web mapping platform and consumer application offered by Google. It offers satellite imagery, aerial photography, street maps, 360° interactive panorama, interactive panoramic views of streets (Google Street View, Street View ...
API, with Aggarwal urging Indian developers to use India-based solutions.
Defunct services
Ola Dash
In July 2015, Ola launched Ola Store, a
grocery delivery service in Bangalore, before shutting it down in March 2016.
[ In November 2021, Ola Store returned with quick delivery of grocery and essentials, starting with a pilot launch in Bangalore. By January 2022, Ola set up 200 dark stores across 9 cities, and rebranded the service as Ola Dash. In April 2022, Ola Dash scaled down its operations from 9 cities to 3 cities and dismissed over 2,100 contract workers. In June 2022, it shut down Ola Dash in all cities.]
Ola Cars
In October 2021, Ola launched its new and pre-owned car marketplace called Ola Cars in 30 cities, which was also expected to sell new vehicles of Ola Electric and other brands. By May 2022, the company had scaled down operations to 17 cities. In June 2022, it closed Ola Cars across all cities and stated that Ola Cars' "infrastructure, technology and capabilities will now be repurposed towards growing Ola Electric’s sales and service network." In August 2024 Ola Electric a subsidiary of Ola that manufactures electric powered two wheelers (scooter) went public through and IPO in India. Shares of the company surged 20% on opening day.
Ola Pedal
Ola launched a bike sharing service in December 2017.
Criticism
Technology
Ola Cabs' technology came under criticism regarding the security of its mobile app. The API calls could be replayed to top up its wallet.
In August 2016, a privacy breach occurred when customers' details such as names, phone numbers and addresses, in Bangalore
Bengaluru, also known as Bangalore (List of renamed places in India#Karnataka, its official name until 1 November 2014), is the Capital city, capital and largest city of the southern States and union territories of India, Indian state of Kar ...
, were received as SMS messages by an individual in Chennai
Chennai, also known as Madras (List of renamed places in India#Tamil Nadu, its official name until 1996), is the capital city, capital and List of cities in Tamil Nadu by population, largest city of Tamil Nadu, the southernmost states and ...
. Although these unanticipated messages were reported to Ola, the company ignored them, even under the threat of being reported to the TRAI. The issue was reportedly fixed three weeks later after receiving considerable media coverage and social media attention.
On 19 January 2020, a technical glitch caused multiple users to receive notifications such as "Your ride is on the way" or "Your ride is here" despite them not even attempting to book through the platform. In some cases, cancelling the ride even attempted to automatically book another ride.
Billing and payment issues
The refund policy of Ola Cabs has been criticised because of charging errors caused by technical glitches in their system. Surge pricing has been an issue with customers, as Ola is said to initially eliminate competition by lowering prices, and then hiking up prices through what it calls surge pricing
Dynamic pricing, also referred to as surge pricing, demand pricing, or time-based pricing, and variable pricing, is a revenue management Pricing strategies, pricing strategy in which businesses set flexible prices for Product (business), products ...
. The fact that the same ride can cost different amounts depending on the time, day and the profiles, history and rating of the driver as well as passenger has also attracted criticism.
Charges comprise:
* Base fare (fixed amount)
* Distance fare (charged per kilometre)
* Ride time fare (charged per time taken to travel)
* Peak pricing (direct ratio depending on demand for cabs)
* GST (5%)
* Toll charges (toll collection if crossing a toll junction)
Driver concerns
In December 2016, drivers protested outside the Kukatpally, Hyderabad
Hyderabad is the capital and largest city of the Indian state of Telangana. It occupies on the Deccan Plateau along the banks of the Musi River (India), Musi River, in the northern part of Southern India. With an average altitude of , much ...
office of Ola, demanding more transparency over payments. From January 2017, Ola was criticised for continuously dropping the driver incentives which in turn was affecting driver-partner's monthly income.
Ola and Uber have also been criticised due to their practice of baiting drivers and passengers, initially with discounts and bonuses, and then hiking up fares without passing the proceeds to drivers. Their practice of taking large signing up amounts from drivers and not considering them employees has also been criticised. Both companies contractually treat drivers as " contractors" thus excusing themselves from any legal obligations.
Assaults on and Murders of Ola cab drivers
There have been 11 cases of murders, and over 90 cases of kidnapping and robbery of drivers working for app-based cab aggregators including Ola, by criminals posing as passengers using fake profiles. The most recent case happened in the city of Pune
Pune ( ; , ISO 15919, ISO: ), previously spelled in English as Poona (List of renamed Indian cities and states#Maharashtra, the official name until 1978), is a city in the state of Maharashtra in the Deccan Plateau, Deccan plateau in Western ...
in June 2019 when a passenger killed the driver to steal his car. Two other murders of Ola drivers by robbers took place in New Delhi
New Delhi (; ) is the Capital city, capital of India and a part of the Delhi, National Capital Territory of Delhi (NCT). New Delhi is the seat of all three branches of the Government of India, hosting the Rashtrapati Bhavan, New Parliament ...
and Agra
Agra ( ) is a city on the banks of the Yamuna river in the Indian state of Uttar Pradesh, about south-east of the national capital Delhi and 330 km west of the state capital Lucknow. With a population of roughly 1.6 million, Agra is the ...
respectively.
Congestion externalities
A recent study has shown that Ola may be contributing significantly to congestion in three major Indian cities – Mumbai, Bangalore and New Delhi. The adverse congestion effects were found to be the highest in the busiest areas of each city during peak hours. The study also reported that many who use these services would have otherwise used more efficient forms of public transport, such as the Delhi Metro.
Driver credibility
Delhi
Delhi, officially the National Capital Territory (NCT) of Delhi, is a city and a union territory of India containing New Delhi, the capital of India. Straddling the Yamuna river, but spread chiefly to the west, or beyond its Bank (geography ...
Transport authority in early 2015 questioned the credibility and required verification of drivers working for Ola, along with other competitors such as Uber. The inquiry revealed that approximately 80% of drivers amongst all services did not possess permits to ply commercial transport services in Delhi.
License suspension
In March 2019, the Karnataka
Karnataka ( ) is a States and union territories of India, state in the southwestern region of India. It was Unification of Karnataka, formed as Mysore State on 1 November 1956, with the passage of the States Reorganisation Act, 1956, States Re ...
state transport department suspended Ola's operating license for six months for violation of license conditions and violation of Karnataka On-Demand Transportation Technology Aggregator Rules, 2016, on account of Ola running bike taxi services though it only had license for four wheeler taxi operations. The company stated that it was working with driving partners to continue functioning and was in touch with authorities to sort things out.
Sexist Ad controversy
In 2016, Ola advertised an ad which created controversy for its sexist portrayal of women. It created protest from the social media, following which the ad was removed.
References
External links
*
{{SoftBank
Ridesharing companies of India
Online companies of India
Transport companies established in 2010
Taxis of India
Companies based in Bengaluru
Softbank portfolio companies
Indian companies established in 2010
2010 establishments in Karnataka
Multinational companies headquartered in India
Transport Network Companies