Growth Strategies of Ola: To Diversify or Not

Ola revolutionized the taxi business in India with its online service which aggregated independent cab drivers. When the company started its operations in the year 2010, the taxi sector in India was mostly unorganized, with individual taxi drivers owning and maintaining their cars. Ola pioneered a unique business model in India under which the company did not own its fleet of cars. Instead, it entered into a tie-up with independent taxi drivers and took a commission for every ride booked through the company.

The model proved successful in the Indian market as customers could easily book cabs online or through the Ola app. Customers were also happy that there was no need to argue with cab drivers on the ride fares as the rates were fixed beforehand by Ola and the fare to be charged for a ride was worked out remotely and communicated electronically to the driver at the end of the journey. During the years that followed, the company expanded its services by launching new services catering to different sections of society. It relied on making the best use of technology like the internet and smartphones to provide a good experience to its customers...