The Harsh Reality of Ola Cabs is revealed by an Ola Driver [The Truth]

The Harsh Reality of Ola Cabs 

Hello friends, today's article is a little bit different but 100% useful and unique as in today's article I'm am going to share my thoughts on ola and I will share the harsh reality of ola cabs in India and how ola's business strategy becomes worst for ola cab drivers.

So in this article I will give you the full case study of ola and I will try my best to deliver the real truth of ola in front of you.

Ola Cabs History

Founded on 8 Dec 2010 and Bhavesh Aggarwal and Ankit Bhatia are founders of ola cabs. This is basically Indian origin company but ola is operating its business in Australia, UK and New Zealand with over 169+ countries.

The Bangalore based company ola is developed by ANI Technologies Pvt. Ltd. As of May 2019, Ola was valued at about $6.2 billion company and growing higher each day.

Ola Marketing Strategy 

So Ola is started in Dec 2010 and after few years ola started getting high amount of funding and just after that they have announced a very attractive offer for all of their cab driver which is crazy. 

The Offers Was: All drivers will get 1 lakh per month income and hence they convinced them to buy a new car in loan and join ola as a cab driver and after that in India, this news got viral and tons of drivers have joined ola.

They joined ola with the hope of "Change" of their life as you know the life on an cab driver in India and that time it is worse. But ola used their "Hope" for Business which is not good. 

Let's know further.

Now, what happens to them? Will discuss further but before this lets know the business strategy of ola.

After getting funding from various farms and business leaders ola started expanding its business and hence they started giving crazy offers to their customers as well as drivers.

Ola Business is based on these points

Give high Staley to drivers.

Create hype in the industry.

Give more in less.

Make them(drivers) believe to take the risk.

Now lets know these points in deep to know what is the main objective of ola behind this business strategy.

Give high Staley to drivers

So when ola announced that all ola drivers will get one lakh per month salary at that time in India average salary of taxi or cab driver is somewhere between 12k to 20k( $200 to $320).

Ola knows that if they also offer the same salary then no one going to join ola and hence ola announced 5 times more salary to drivers and hence all drivers have joined ola with the hope and for bright future of their family.

Here one thing is more important that every ola driver who joins the ola must have a car or if they don't they have to buy a new car in load or cash (It depends on the driver) and ola only needs a car with driver.

How did this worked for ola?

So this is really worked for ola as they get a huge number of drivers and cars at very less budget as compared to buying new cars and giving them to the drivers and hence ola just transferred the risk-taking step to drivers.

Ola is doing only Business...

Create hype in the industry

So by announcing 5x more salary ola actually succeeded to create the hype in the industry but they have full proof plans on how to recover the loss and everything we will discuss today. 

Give more in less

Ola plan number 3 give more in less and this formula is used by may businesses till now and the perfect example of this formula is "Reliance Jio".

Ola announced crazy discount as well as refer friends offers with very low price cabs and also free rides who invite their friends to ola.

Make them believe to take the risk

Ola played with mind and announced various offers for customers as well as drivers. Ola convened and set an belief in the mind of all drivers that all drivers will get high respect here and every driver's voice will be taken very seriously.

These type of announcement attracted the various taxi and car drivers in India and they joined the ola with their cars.

Ola Driver Cars Loans

As ola announced that they will give each and every driver not less than one lakh rupees and hence most of the drivers are happily brought a car with a loan with the hope that when they will get 1 lakh salary they will easily pay the EMI and also save money from it.

But my friends here comes the harsh reality of ola. Ola knows once a driver joins ola with a new car with a loan they won't be able to leave the ola as they have to pay the EMI every month and ola knows this helplessness of all the drivers.

How Ola Used The helplessness of Drivers

As drivers had taken the car for high rates of EMI hence they will have to fill the EMI of the car for at least 5 to 10 years and this the biggest helplessness of these drivers and hence Ola Started the new game to start the real business.

Ola gradually started to cut the salaries of all its drivers, behind which they have given the reason of excessive expenditure, and the salary of the driver has decreased from 1 lakh to 80 thousand and 80 to 60 thousand and now from 20 thousand to 30 INR.

In view of such behavior of Ola, their driver started raising their voice and sadly let you know that many of the drivers of ola attempted suicides, and this is the harsh reality of Ola which no one can change!

Conclusion

It's no doubt that we can learn many things from ola but there are some very unlike moves of ola Which are proved as the biggest mistakes of ola.

Below I have attached two videos of ola by two other people. One video is for positive sides of ola cabs and the second one is revealing the reach reality of ola. 

The videos are in Hindi language and if you don't know Hindi then you may watch with subtitles. :P

Video by Vivek Bindra and in which he explained old business model. But there are some glitch and see below video to know the harsh reality of ola cabs.

Thanks!!

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