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
 CONTENTS
S.NO PARTICULARS PAGE NO.

1. 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
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
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

6. Rapid expansion and online application

Strength 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

2.Increasing internet penetration & smart phone users

3. Rising disposable income

4. Shifting of consumers towards convenience creates huge demand

Opportunity 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

1. Uber Cabs

2. Meru cabs (India)

3. Easy cabs

4. Unorganized players (Auto rickshaws/Taxis)

Competitors 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

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

Evolving the way the world moves; Making cities more accessible; Bringing people and their
Positioning cities closer
 SWOT ANALYSIS
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

7. High awareness due to excellent advertising and marketing

Strength 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 potential is there

2. Increasing internet penetration & smart phone users

3. Rising disposable income

Opportunity 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

4. Future is unclear due to lack of regulations

Threats 5. Customer loyalty is less in this industry
 Competition

1. Lyft

2. Curb

3. Sidecar

4. Kuaidi Dache

5. Didi Dache

6. Ola cabs
Competitors 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 California, Computer science engineering from Indian institute of
technology, Mumbai.
Loss Angeles .

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 fooFood

fooff Personal
delivery transport

Grocery
ordering

EXPANSION
18 CITIES IN INDIA 1 00 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 up or In light of a sexual assault incident involving a
driver, both start ups must work extra hard to
cancelling booking after
ensure passenger safety in India.
accepting it.

Drivers don’t know the way around the Regulatory challenges like ban or taxi- hailing
city. 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
Also I have gained some new experience about the
consumer research. While surveying I have
m e t a l a r g e n u m b e r p e o p l e , wi t h d i f f e 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 –
 1st preference will go to FACILITIES
 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

Tgt23@gmail.com

I would be delighted to hear from you!