Scribd
Upload
122 views2 pages

Ooober's Business Model and Market Challenges

Ooober's business model does not involve owning vehicles like traditional cab companies. It connects customers to drivers through a mobile app. Ooober agreed to sell its Indian business to Hello Cabs for an undisclosed amount, transferring all driver agreements. However, drivers were concerned this would threaten their job security as Hello Cabs had a reputation for prioritizing profits over workers. There were also existing payment disputes between Ooober and drivers.

Uploaded by

dk0895
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
122 views2 pages

Ooober's Business Model and Market Challenges

Ooober's business model does not involve owning vehicles like traditional cab companies. It connects customers to drivers through a mobile app. Ooober agreed to sell its Indian business to Hello Cabs for an undisclosed amount, transferring all driver agreements. However, drivers were concerned this would threaten their job security as Hello Cabs had a reputation for prioritizing profits over workers. There were also existing payment disputes between Ooober and drivers.

Uploaded by

dk0895
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

PETITIONERS

Unlike companies in the traditional cab operator business, Ooober’s business model does not
involve any investment in capital assets (i.e. primarily cabs).1

The customer pays for his cab journey, as per an Ooober-determined rate, with the Driver and
Ooober retaining their respective shares of the fare, as agreed in the formal agreement,
entered into between every Driver and Ooober.

Ooober accepted the offer and agreed to sell its Indian business to Hello Cabs for an
undisclosed amount, with all of the existing Driver Agreements and agreements in relation to
the Delivery Business be novated in favour of Hello Cabs.

The Drivers felt that Proposed Transaction did not take into account their interests, including
job security. Ooober has always been fair to the Drivers, while Hello Cabs had a reputation of
being cut-throat corporate entity, driven purely by market forces.

Further, there were certain pre-existing unresolved payment-related industrial disputes


between Ooober and the Drivers, that had been initiated by the Drivers in the past.

RESPONDENT

Ooober takes cab bookings from customers by way of a mobile application and connects the
customer with the drivers, who have agreed to partner with Ooober (“Drivers”), available at
that time.2

The Driver accepts the booking by way of a driver-facing mobile application, installed on a
mobile device provided by Ooober, and the picks up the customer and drops him to the
desired location.

In order to make himself available for service, the Driver simply has to log in to the Ooober
application on his mobile device.

1
Factsheet para 1 line 7
2
Factsheet para 1 line 8
Various investors saw merit in Ooober’s strategy and Ooober consequently received massive
funding from a consortium of foreign investors including Lion Global, Redstone and
Toughbank (“Investor Consortium”) who collectively acquired 70% of the share capital of
Ooober.

Ooober, as part of a diversification strategy, and in order to boost its revenues, integrated
delivery services into its mobile application platform.

The Ooober team synchronized and amalgamated the payment systems for placing orders
with restaurants, hotels and food stores with the extant mechanism for paying cab fares.
Ooober separately entered into back-to-back arrangements with the vendors retailing food
and beverages on the platform whereby Ooober would settle payments with them on a
monthly basis.

Various market studies also started reporting that Hello Cabs by this juncture had amassed a
51% majority share in the market and was eating into Ooober’s market share, which now
stood at 35%, down from the 55% share that they once had.

You might also like