Ola focusing more on its core Business

India's biggest taxi aggregator recently had started its pilot project of delivering food and Grocery at the time when there are low booking calls as especially between 1 to 4 pm in afternoon. They actually named this service as "Ola Cafe". This service was going on in Bangalore region only for testing purpose.

But now after testing the market they found its not viable and so they decided to shut it off and concentrate more on its core business model that is taxi service. They currently are competing neck to neck with Uber. Currently they are focusing big on this business by adding more funds from different investors and expanding its service to small towns and city with its Bus shuttle category too.

Currently Ola has a 15-20% lead on Uber in its taxi services and one of the Ola investor say, that needs to be maintained, so instead of entering many categories and come second or third become leader by focusing on one category and grow it consistently.

Many employees from Ola cafe and Ola Store are been layed off due to the closure of these two business they are going through restructuring process. Where many form Ola cafe and Ola Store are also been kept.

Ola will be channelizing more of its resources in its taxi business in eight major cities where they are in direct competition with Uber Taxi services. They will majorly focus on low cost taxi services, ride sharing services, Auto rickshaw services and will be doing required investment in bus shuttle services. This will cover wide commuter segment in the cities by Ola.

Bhavish Aggarwal, CEO of Ola, said,

“Our mission is to build mobility for a billion people.“

Another investor in Ola said that Ola will focus more on its taxi business by doing more investment in all categories but especially on low cost taxi services. Recently the company had launched Ola Micro which is 20% cheaper than Ola mini. in following cities like : Mumbai, Delhi and bengalore. Which gives direct completion to Uber’s low cost service “Uber Go”? 

Ola's marketing head Anand Subramanian said that its 90% of revenue comes from Bengaluru, Hyderabad, Chennai, Delhi-NCR, Mumbai, Jaipur, Pune and Kolkata.

Uber also had made critical changes in its portfolio by shutting its Auto rickshaw service category this year and also replacing its Premium taxi services that is Uber black to SUV and XL categories in India.

They also shut down its wifi enables cab services in two cities. Uber's investors include Bennett, Coleman and Company Limited. Due to tough competition between Uber and Ola and to get market leadership both are pumping more and more funds in customer acquisition.