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. Date:TANYA GANDHI
MRS. PREETI MALIK (BBA III SEMESTER)
CERITIFICATE
S.N O 1.
PARTICULARS CHAPTER-1 *INTRODUCTION Objective Research Methodology
2.
CHAPTER-2 *PROFILE OF OLA CABS *PROFILE OF UBER CABS *COMPARISON BETWEEN OLA CABS AND UBER CABS
3.
CHAPTER-3 *ANALYSIS AND INTERPRETATION OF THE DATA *CONCLUSIONS AND RECOMMENDATIONS.
4. CHAPTER-4 *BIBLIOGRAPHY *APPENDIX questionnaire
CONTENTS
PAGE NO.
CHAPTER-1
INTRODUCTION
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.
OBJECTIVES
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 been taken for this project.
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 25 cabs) in India is an abysmal 40-50%. 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. 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 operators and drivers before partnering with them.
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.
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.
FUNDING
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
Positioning
Using technology to bring the higher efficiency and customer experience
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 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
Strength Weakness
6. Rapid expansion and online application 7. Multiple rounds of VC investments have made the brand financially strong 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 1. Unorganized market is huge (~90%) and hence potential is high
Opportunit y
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 1. Rising competition 2. Uber has deep pocket and hence can burn cash heavily 3. Presence of many national players
Threats
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
1. Uber Cabs 2. Meru cabs (India) 3. Easy cabs
rs
4. Unorganized players (Auto rickshaws/Taxis) 5. Carpooling services
UBER CABS
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 mid2015, 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.
BENEFITS OF UBER
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 15second 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 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
Strength Weakness
7. High awareness due to excellent advertising and marketing 8. Deep pockets & hence can burn cash heavily to acquire market share 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 1. Rising competition 2. Presence of many national players 3. Absence of clear government regulations in developing countries
Threats
4. Future is unclear due to lack of regulations 5. Customer loyalty is less in this industry
SWOT ANALYSIS Competition 1. Lyft 2. Curb 3. Sidecar
Competito rs
4. Kuaidi Dache 5. Didi Dache 6. Ola cabs 7. Meru cabs
INDIA’S TAXI WAR UBER v/s OLA
MARKET OVERVIEW INDIA’S POPULATION: 1.311 BILLION RESIDENTS
FOUNDERS: TRAVIS KALANICK AGGARWAL
BHAVISH
Computer science drop out from university of California,
Computer science engineering from Indian institute of technology, Mumbai.
BUSINESS NUMBER OF RIDES RIDES
2, 00,000 50,000 Operates in India with More than 2, 00,000 daily rides.
NUMBER OF
7, Operates in India with More Than 7, 50,000 daily rides.
SERVICES
Personal transport
foofooff Food
delivery
Person al transpo
Grocery ordering
EXPANSION
18
CITIES IN INDIA
100
CITIES IN INDIA
FUNDING Raised US$1 billion for in India.
Raised US$676 million in India.
STRENGTHS *Customizes offering to
*Good understanding of
Suit local Indians.
Local market.
*Huge spending power.
*Ubiquitous branding. *Early transaction.
WEAKNESS Brand is late mover in heavy
Human Resource
India.
Model.
POPULARITY
MOST FOLLOWED ON
TWITTER
FAN BASED ON FACEBOOK
SHARED CHALLENGES Drivers either not turning up or cancelling booking after accepting it.
In light of a sexual assault incident involving a driver, both start ups must work extra hard to ensure passenger safety in India.
Drivers don’t know the way around the city.
Regulatory challenges like ban or taxi- hailing in some cities.
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 waythey 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 A l s o I h av e g a i n e d s o m e n e w e xp e r i e n c e a b o u t t h e c o n s u m e r r e s e a r c h . W hi l e s u r v e yi n g I h av e m e t a l a r g e n um b e r p e o p l e , wi t h di ffe r e n t p e r c e p t i o n s , wi t h 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 – 1 s t p re f e re n c e w i l l g o t o FA C I L I T I E S 2nd preference will go to PRICE 3rd preference will go to TIME TAKEN
Bibliography www.olacabs.com www.ubercabs.com
www.wikipedia.com
ANNEXURE
QUESTIONNAIRE NAME: 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 PREPAID WALLETS (payumoney, paytmwallets etc.)
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? YES
NO
Thank you so much for your time!
If you have any comments or queries, please email me on
[email protected]
I would be delighted to hear from you!
