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 PARTICULARS PAGE
O NO.
CHAPTER-1
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
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 2-
5 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

EMPLOYEE RELATION
and certify drivers and do thorough background checks of both
operators and drivers before partnering with them.

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
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

Weakness 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
2.Increasing internet penetration & smart phone users

3. Rising disposable income

y
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

4. Absence of clear government regulations in developing countries

Threats 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 mid-
2015, 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 15-
second 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

Offering seamless travel with the rider walking away after arriving at his
USP destination

STP

Segment People who mobile from one place to another for any purpose

Customers who are in need of cabs instantly & Early and late majority of business
Target Group professionals
 Evolving the way the world moves; Making cities more accessible; Bringing people
Positioning 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
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

Weakness 2. While the demand is huge, amount of cash burning is huge and monetization
is very difficult currently
 1. Unorganized market is huge in developing countries and hence huge

Opportunit
potential is there

2. Increasing internet penetration & smart phone users

y
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
4. Kuaidi Dache

5. Didi Dache

rs
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 BHAVISH
AGGARWAL
Computer science drop out from university of Computer science engineering from Indian
California, institute of technology, Mumbai.

BUSINESS
NUMBER OF RIDES NUMBER OF
RIDES

2, 00,000 7,
50,000
Operates in India with Operates in India with More

More than 2, 00,000 daily rides. Than 7, 50,000 daily rides.

 SERVICES

Personal transport foofooff

Food Person
delivery al
transpo
Grocery
ordering

EXPANSION
18 CITIES IN INDIA 100 CITIES IN INDIA

FUNDING
Raised US$1 billion for Raised US$676 million
in India. 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 Human Resource
heavy
India. Model.

POPULARITY
 MOST FOLLOWED ON TWITTER
FAN BASED ON FACEBOOK

SHARED CHALLENGES
Drivers either not turning In light of a sexual assault incident
involving a driver, both start ups must
up or cancelling booking
work extra hard to ensure
after accepting it. passenger safety in India.

Drivers don’t know the way Regulatory challenges like ban or

around the city. 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 way-

they 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!