MARKETING STRATEGY OF CAB SERVICES – A COMPARATIVE STUDY ON OLA AND UBER

Submitted by :- SOUMEN GHOSH

Registration Number :-612-1111-0052-17
C.U. Roll No :- 171612-21-0065
Project Topic :- MARKETING STRATEGY OF CAB
SERVICES – A COMPARATIVE STUDY ON OLA AND UBER
Name of the College :- NABAGRAM HIRALAL PAUL
COLLEGE
Name of the University :- THE UNIVERSITY OF CALCUTTA
Submitted on :- OCTOBER 2020
Name of the Supervisor :-AMAR NATH DAS
MARKETING STRATEGY OF CAB SERVICES – A COMPARATIVE STUDY ON OLA AND UBER

PROJECT TOPIC:-

MARKETING STRATEGY OF CAB SERVICE

A COMPARATIVE STUDY ON OLA AND UBER

 MARKETING STRATEGY OF CAB SERVICES – A COMPARATIVE STUDY ON OLA AND UBER

SUPERVISOR’S CERTIFICATE

This is to certify that MR,SOUMEN GHOSH a student of B.COM (HONOURS) in

Accounting & Finance of THE NABAGRAM HIRALAL PAUL COLLEGE under the
UNIVERSITY OF CALCUTTA has worked under my supervision and guidance for
her Project Work and prepared a Project Report with the Title MARKETING
STRATEGY OF CAB SERVICES – A COMPARATIVE STUDY ON OLA AND UBER , which
she has submitted with genuine and original work to the best of my knowledge.

PROF. AMAR NATH DAS

NABAGRAM HIRALAL PAUL COLLEGE

Place:- KONNAGAR

Date:- 01/10/2020
 MARKETING STRATEGY OF CAB SERVICES – A COMPARATIVE STUDY ON OLA AND UBER

STUDENT’S DECLARATION

I hereby declare that the Project Work with the Title MARKETING STRATEGY OF
CAB SERVICES - A COMPARATIVE STUDY ON OLA AND UBER submitted by
me for the partial fulfillment of the degree of B.COM (HONOURS) IN
ACCOUNTING AND FINANCE under the UNIVERSITY OF CALCUTTA is
my original work and has not been submitted earlier to any other
University for the fulfillment of the requirement for any course of study.

MR.SOUMEN GHOSH

ADDRESS:-2/1 N.T.ROAD N.T.ROAD

CHOWMATHA HOOGHLY

Date :- 01/10/2020
 MARKETING STRATEGY OF CAB SERVICES – A COMPARATIVE STUDY ON OLA AND UBER

ACKNOWLEDGEMENT

I owe a great thanks to many people who has helped and supported me during
the writing of project. My deepest thanks to my supervisor PROF. AMAR NATH
DAS the guide of my project for assisting me and correcting various documents
of mine with attention and care. She has taken pain to go through the project
and make necessary corrections as and when needed.

I would also thank respective teachers with whom this project would have been
distant reality. I also extend my heartfelt thanks to my family, friends and my
well-wishers.

MR.SOUMEN GHOSH

B.COM (HONS) 6TH SEM

REGISTRATION NO :- 612-1111-0052-17

ROLL NO:-171612-21-0065
MARKETING STRATEGY OF CAB SERVICES – A COMPARATIVE STUDY ON OLA AND UBER

CONTENT

CHAPTER NO PARTICULARS PAGE NO

1. INTRODUCTION 7-13

1.1 BACKGROUND OF THE STUDY

1.2 NEED OF THE STUDY

1.3 OBJECT OF THE STUDY

1.4 REVIEW OF LITERATURE

1.5 RESEARCH METHODOLOGY

1.6 LIMITATION OF THE STUDY

2. CONCEPTUAL FREAM WORK& 14-22

NATIONAL AND INTERNATIONAL
SCENARIO

2.1CONCEPTUAL FREAMWORK

2.2 NATIONAL AND INTERNATIONAL

SCENARIO

3. PRESENTATION OF DATA ,DATA 23-42

ANALYSISAND FINDINGS
4.
CONCLUSION,RECOMMENDATION,AND
BIBLIOGRAPHY 43-46
MARKETING STRATEGY OF CAB SERVICES – A COMPARATIVE STUDY ON OLA AND UBER

CHAPTER 1

INTRODUCTION
 MARKETING STRATEGY OF CAB SERVICES – A COMPARATIVE STUDY ON OLA AND UBER

1.1BACKGROUND OF THE STUDY:-

In the past decade the transportation facilities in urban areas have undergone tremendous
changes. Among various modes of transportation the cabs have become important mode of
transportation in metropolitan and urban cities in India. The growth of organized car rental
industry is continuously growing with support of technology. The customers in the present era
are using mobile apps to book a cab at anytime and from any place in urban areas. The pricing
strategy of cab operators had been positively influencing customers to book a cab instead of
traditional mode of transportation like autos and local buses etc. Like most of the industries the
car rental industry had underwent lot of transformation with internet technology. The
consumers are able to access book cabs at competitive prices because of tough competition
among the organized cab operators. In this regard the present paper briefs about the behavior
of consumers while booking cabs.

One of the major points of study of marketing strategy is customer satisfaction. In these
modern times, business firms are exposed to various macro environment forces which include
fierce competition, globalization, rapid changes in customer preference and taste, changes in
technology and swift innovation. To cope with these challenges firms should pursue to
establish and maintain loyal customer base through customer satisfaction. To achieve this,
firms need to understand customer’s specific requirement, improve on existing service feature,
and adopt new or unique ways of servicedelivery. Service quality can be defined as the degree
to which customers' perceptions of service either meets and/or exceeds their anticipation. On
other hand, customer satisfaction refers to the customer’s attitude and emotional response
towards the service provider that results from the difference between customer’s perception
and actual outcome.
 MARKETING STRATEGY OF CAB SERVICES – A COMPARATIVE STUDY ON OLA AND UBER

1.2 NEED OF THE STUDY:-

The organized cab service providers have increased in the recent

years. There is stringent competition among various operators like Ola, Radio
cabs, Yellow cabs, Meru and Uber etc. In this regard it necessary to understand
the consumer behavior towards is very important to formulate business
strategies. This study helps the marketing managers in car services industry and
academicians to gain insights about consumer behavior towards cab services.
With the advancement of the society the changes in different types of vehicles
are not worthy. Taxis plying now a days are much more comfortable than the
earlier yellow branded taxis. Passengers are not required to stand in queue’s
these days as they can be book the taxis using some mobile apps of
their preferred franchise. Among the service providers, OLA and UBER
have become most popular to the passengers. Passengers are enjoying
these services at reasonable price for travelling any distance with ease and
comfort. Thus, entry of OLA and UBER in the transport system is a threat to the
existence of yellow branded taxis and is a valuable topic to work on.

1.3 OBJECTIVES OF THE STUDY:-

 To study the influence of price consciousness on consumers while selecting a

cab service.
 To ascertain the role of innovativeness of the consumers in the selection of
cab services.
 To study the impact coupon redemption behavior of consumers in the
selection of cab services.
 To assess customer opinion about Online Cab Services on the five
parameters of the area Tangibles, Reliability, Responsiveness, Assurance,
Empathy.
 MARKETING STRATEGY OF CAB SERVICES – A COMPARATIVE STUDY ON OLA AND UBER

1.4 REVIEW OF LITERATURE :-

Hanif and Sagar (2016) had stated that there was demand for Call-a-Cab
service offered by Meru Cab. The cab services are proving security through global
positioning system (GPS) and women taxi drivers for women passengers
especially during night times. According to Harding et al (2016) the auto-
rickshaws (three wheelers) are more popular in urban transport before
the advent of cars and cabs. Horsu and Yeboah (2015) had argued that
driver behavior have negative impact on customer satisfaction in Ghana. The
variables like continuous service, comfort, reliability and affordability have an
impact on customer satisfaction with regard to minicab taxi. According to Lu et al
(2015) the self- service mobile technologies helps the commuters to access lot of
data about cab services and such technologies had changed the role of both
customers and companies. The adoption of call taxi app (CTA) is impacted
perceived usefulness, perceived ease of use, subjective norms and perceived
playfulness (Peng, Wang, He, Guo, & Lin, 2014). Chen (2014) had explained that
mobile apps help both drivers and passengers to find each other. At
present the mobile apps are helps the customers to find cabs. In the
recent years the car rental industry is growing constantly especially in
metropolitan cities in India (Rahman, 2014). According to Khurana S. (2014) in
today’s intense competitive business world, the customer is educated and smart
and commands satisfaction in all services. Banking is one of the numerous
services in which customer satisfaction has an ever growing importance in the
analogous research areas. This is basically because the banking sector is
becoming more and more aggressive in its marketing approach. Retail banks are
pursuing this approach, in part, because of the complexity in
differentiating based on the service offering. The Meru cabs had become
more popular and the demand for its cabs had exceeded that its supply which
means technology had created huge demand for organized cab
industry. The factors like accessibility, reliability and transparency are
 MARKETING STRATEGY OF CAB SERVICES – A COMPARATIVE STUDY ON OLA AND UBER

primary factors which have attracted customers towards branded cab

services like Meru cabs (Vaithianathan & Bolar, 2013). The customer feedback in
cab services industry is very important for attaining success in the
competitive car rental industry. Upadhyaya (2013) had explained how
Meru Cab Company had collected feedback from its customers and enhanced its
service quality for sustaining in the business. According to Calabrese A. and
Spandoni A. (2013), service productivity and perceived service quality are both
critical success factors for companies (Marinova, Ye, and Singh 2008).
Thus in its operations, a service provider must achieve both the highest
perceived service quality (HPSQ) and Technical Efficiency (TE) (Grönroo and
Ojasalo 2004). A service provider characterized by both the HPSQ and TE is then
an efficient service provider (ESP).However, for an ESP, an increase in
productivity also causes a reduction in the quality perceived by customers.
Asghar Afshar Jahanshahi 7 (2011) In this research, the author addresses the
following questions that are becoming increasingly important to managers
in automotive industries: is there a relationship between customer
service and product quality with customer satisfaction and loyalty in the context
of the Indian automotive industry? If yes, how is the relationship between these
four variables? The automotive industry in India is one of the largest in the world
and one of the fast growing globally. Customer satisfaction and loyalty are the
most important factors that affect the automotive industry. On the other hand,
customer service can be considered an innate element of industrial
products. Customer service quality, pr quality, customer satisfaction and
loyalty can be measured at different stages, for example, at the
beginning of the purchase, and one or two years after the purchase. The
population of the study comprised all of the Tata Indica car owners in Pune. The
hypotheses of the study were analysed using regression and ANOVA. The results
of the study showed that there was a high positive correlation between the
constructs of customer service and product quality with customer satisfaction and
loyalty.
 MARKETING STRATEGY OF CAB SERVICES – A COMPARATIVE STUDY ON OLA AND UBER

1.5 RESEARCH METHODOLOGY :- The data of this project is Primary. Primary

data is the information gathered directly through face to face interviews, survey
through questionnaires, etc. On the other hand, data also we get
through magazines, research articles, journals, online materials, etc.This project
have been developed on primary data by distributing questionnaires to people,
out of which 27 people responded back from the Hooghly district and Howrah.
The surveys were composed of a total of 15 questions. The numbers of questions
were kept low to encourage people to complete the survey. The respondents for
this study should have consumed cab services in the last one month after
lockdown and one month before lockdown and they should have booked the cab
through mobile apps in their smart phones. The demographic variables
considered in this study are age group, occupation and gender. The constructs in
this study are innovativeness, price consciousness and coupon redemption.

The results of the survey ultimately served two functions :-

Confirm/validate previously held assumptions.

Provide insight into prospective customer’s preferences and thought processes.

 MARKETING STRATEGY OF CAB SERVICES – A COMPARATIVE STUDY ON OLA AND UBER

1.6 LIMITATIONS OF THE STUDY :-

 Time shortage was a major factor as developing a project in the span time of
two or maximum three months . If we would have got more time to research,
the project could have been more elaborate and apt.
 Due to the lockdown I could not continue my observation got stuck in the
middle ,it wasted a lot of my time to complete my project.
 Cost was a huge factor. It is a project in which detailed information is required
and to enable that and to prepare it, huge cost is needed. So, it is an expensive
project and thus unaffordable. Adequate data was not available or developed
as the respondents were not cooperative enough to share sufficient
information which was needed for the project. Moreover ,due to lockdown
,traffic problems,high fares,low number of vehicles,I am unable to complete
my project better due to all the precautions,I could have done better without
this problem.
 The consumer behavior was dynamic in nature and it was tough to make
robust conclusions from the study.
 The Sample size of the questionnaire was restricted to 27respondents of
Hooghly and howrah.
MARKETING STRATEGY OF CAB SERVICES – A COMPARATIVE STUDY ON OLA AND UBER

CHAPTER – 2

CONCEPTUAL FRAMEWORK

And

NATIONAL AND INTERNATIONAL SCENARIO

 MARKETING STRATEGY OF CAB SERVICES – A COMPARATIVE STUDY ON OLA AND UBER

2.1 conceptual fremwork

1) Concept of Marketing :- The American Marketing Association (1948) defined

marketing as "the performance of business activities that direct the flow of goods
and services from producer to consumer or user". The focus of this definition is on
the selling and distribution of goods and services while the other important
aspects of marketing are ignored. The Association (I960) therefore, redefined
marketing as "the process of planning and executing the conception,
pricing, promotion and distribution of ideas, goods and services to create
exchange that satisfy individual and organizational objectives". The definition of
Stanton runs in similar vein: "Marketing is a total system of business
activities designed to plan, price, promote and distribute want-
satisfying products, services and ideas to target markets in or achieve
organisational objectives." Harry L. Hansen looks at marketing as "the
process of discovering and translating consumer needs and wants into
product and service specifications, creating demand for products and services,
and then in-turn expanding the demand". Edward U. Cundiff views marketing as
"a managerial process by which products are matched with markets". These
definitions highlight marketing as a system designed to offer something of value
for the benefit of both the organization and the market. In other words
marketing is performed with the twin objectives of making profit for the firm and
satisfaction for the consumers But in more recent times, marketing is mainly
concerned with exploring and analysing consumer wants and meeting
them. This consumer oriented approach has been aptly explained by Peter
Drucker in the following words: To know what a business is we have to start with
its purpose. Its purpose must lie outside the business itself". It must lie in society.
There is only one valid definition of business purpose: to create customers. To
sum up the discussion of this part, it may be said that marketing concept holds
that a firm should:- Be customer-oriented.

Strive for profitable sales volume.

Coordinate all its marketing activities by means of efficient management.

 MARKETING STRATEGY OF CAB SERVICES – A COMPARATIVE STUDY ON OLA AND UBER

2) Evolution of Marketing :- Ever since the primitive days, mankind had

been engaging in the act of giving and taking in the form of barter. This
physical phenomenon of giving and receiving was defined in marketing
as 'exchange'. This process of exchange in its evolutionary path resulted in the
emergence of four marketing concepts which are as follows :-

 Production and Distribution Orientation.

 Sales Orientation.
 Consumer Orientation.
 Societal Orientation.

3) Importance of Marketing :- Marketing as a modern field of knowledge affects

everyone, irrespective of the fact whether one is citizen, a customer or a member
of the work-force. Marketing pervades every aspect of life: It manages demand
for product, generates consumer’s enthusiasm, and maximises consumer
satisfaction. It provides ample opportunities and thus it delivers standard of
living to the society and maximizes life quality. Marketing plays a critical role in
respect of underdeveloped countries. Indeed marketing is the most important
"multiplier' of development. Its development makes possible economic
integration and the fullest utilisation of whatever assets and productive capacity
an economy already possesses. It mobilizes latent economic energy. It
contributes for the rapid development of entrepreneurs and managers, and
above all for the greater satisfaction of human needs.
 MARKETING STRATEGY OF CAB SERVICES – A COMPARATIVE STUDY ON OLA AND UBER

4) Marketing Management :- Marketing Management is a vehicle with

which the business achieves the goals of marketing. In other words
marketing management is marketing concept in action. While marketing
concept is a philosophy, marketing management is a means for evolving
strategies to accomplish the same. Marketing management is the analysis,
planning and Implementation and control of programmes designed to
create, build and maintain mutually beneficial exchange relationship
with target markets for the purpose of achieving organisational objectives.
It relies on a disciplined analysis of the needs, wants, perception and preferences
of target and intermediary markets as the basis for effective product design,
pricing, communication and distribution. Hence the task of marketing
management is regulating the level, timing and character of demand in a
way that will help the organization in achieving its objectives of creating customer
satisfaction and realizing targeted profit.

5) Marketing Management Process:- The marketing management process

should be understood as an integrated effort involving intra
organisational factors like product, price, promotion and channels of
distribution as well as extra- organisational environmental factors like
consumers, competitive conditions, trade behaviour, technological and economic
development. In as much as, the marketing management process consists of :-
Analysing market opportunities

Selecting target markets

Developing the marketing mix

Managing the marketing efforts

 MARKETING STRATEGY OF CAB SERVICES – A COMPARATIVE STUDY ON OLA AND UBER

6) Marketing Opportunity Analysis :- Marketing opportunities are the starting

point of marketing activity. Management needs to know how to
identify and evaluate market opportunities. Management can identify market
opportunities by working with the product/market expansion grid and
paying attention to new industries. Each opportunity must be evaluated
so as to ascertain whether it is in tune with the company's objectives and can be
handled with the company's resources. Marketing opportunity analysis
should reveal a number of alternative opportunities. Each alternative
market opportunity will require a deep study before it can be selected. The
company may want to make a more careful estimate of cur-rent and
future demand to make sure that the opportunity is sufficiently
attractive. If so, the next step is to identify those customer groups or market
segments whose needs the company can beat serve. The company might choose
to serve one or more market segments. For each target segment, the company
has to position its products in terms of product attributes, brand, price with
reference to competing products and establish some differentiation in the minds
of customers.
 MARKETING STRATEGY OF CAB SERVICES – A COMPARATIVE STUDY ON OLA AND UBER

.2 NATIONAL AND INTERNATIONAL SCENARIO

1)National Scenario :-

Evolution Of The Organized Taxi Sector In India :-

Mega Cabs and Fast Track Taxi started out in 2001 itself with small fleets. The
market, however, started seeing traction only from 2006 onwards when the likes
of Meru Cabs, Easy Cabs and Savaari came up. There are now several competitors
eyeing for a piece of the pie.

Phase 1 – Fully Owned Fleets:- In the initial phase of the market companies
owned the complete fleet with the drivers as salaried employees. This
was characterized by high capital costs to the company – car loan EMI’s,
high maintenance costs. While this model facilitated rapid expansion, it also
came at a huge cost. Caused high stress levels in drivers and there were driver
strikes that affected the service. Bookings were mainly done via telephone calls
and cash was the dominant model.

Phase 2 – Fleet Aggregation Model:- Companies like TaxiForSure and Ola started
this model where small fleet owners or single car owners can put the company
brand on the car, and get registered with them. Cars are free to take up non-
company rides, but for every company-initiated ride, they pay the company a
fixed percentage as commission. This model had low capital expenditure and
lower maintenance costs. Booking was done via telephone calls as well as
through their websites. While cash was still the dominant payment form, in-cab
POS terminal for credit / debit cards started being used as well in this phase.

Phase 3 – The Hybrid Model (Current Phase):- In this model part of the fleet is
owned by the company and part of the fleet is from an aggregation model, hence
providing the best of both worlds – better control on cab availability
and service quality while keeping costs low. Booking are done via telephone,
website as well as mobile apps and the payments via cash ,cards ,wallets.
 MARKETING STRATEGY OF CAB SERVICES – A COMPARATIVE STUDY ON OLA AND UBER

The Road Ahead:- The radio taxi space in India has a huge headroom for growth
and is far from saturation. While there is a good scope for expansion in tier 2
cities, the metro’s will still be the primary market for all the players. Hence we
might see price wars and more fleet variations (like Ola Auto, Ola
Nano and Uber) being introduced. More and more hatchbacks and low
cost options will be introduced to cater to the price conscious Indian
market and to compete against other forms of public transportation. Service
assurance & amp; quality and convenience will emerge as the long-term
differentiators. Ride-sharing might come up in the next 3 years and has the
potential to bring down costs even further for the consumer as well as reduce
costs even further for the taxi players. There are quite a few small
ride sharing startups already like LetsRide, Ridingo, Zify, PoolCircle and Rocket
Internet’s Tripda to name a few.

1)International Scenario :-

Singapore :- Taxicabs are a popular form of public transport in the compact

sovereign city-state of Singapore, with fares considered relatively low
compared to those in most cities in developed countries. Currently,
the taxi number ratio is declining with the rise of Uber and Grab, private hire
cars and tighter emission regime with at least minimum Euro 4 standard.

Taxis may be flagged down at any time of the day along any public road outside
of the Singapore Central Business District (CBD). Issues of high traffic and
demand in certain locations and areas, particularly in the downtown area and
other major buildings and establishments around the island, require the building
of taxi stands. As taxis may conversely be harder to obtain in less densely
populated areas, as well as to meet the needs of time-sensitive users, taxis may
be booked via telephone or through the internet for a fee, which is then
transmitted to individual taxis via a Global Positioning System (GPS) or digital
voice dispatch.
 MARKETING STRATEGY OF CAB SERVICES – A COMPARATIVE STUDY ON OLA AND UBER

Stringent requirements ensure that all taxis are fitted with meters and are air-
conditioned and serviceable. Drivers who fail to utilise their meters may
be fined up to S$500, an enforced rule which brings far disputes down
to a minimum. About 90% of taxis have in built AM broadcasting communications.
Taxis are predominantly operated by large companies, which require a Taxi
Operator Licence (TOL) from the Land Transport Authority (LTA). Holders of
the TOL are required to comply with LTA's Quality of Service
(QOS)standers,codes of practice and audit directions,failure of which the LTA may
revoke the licence.

ComfortDelGro, SMRT Taxis, TransCab, Silvercab and Prime Taxis allow flagdown
and bookings. Grab and Uber only allows bookings through the
smartphone. As of September 2017, there are five taxi companies in
Singapore and two private hire car companies in Singapore

Fares on Singapore's taxis are considered relatively affordable and

even "cheap" and are thus a popular form of public transportation in
Singapore, particularly for the upper-middle income groups. Taxi fares
were regulated by the Public Transport Council until September 1998 to
allow operators full freedom in setting their own fares in a bid to introduce
greater competition in the market.
 MARKETING STRATEGY OF CAB SERVICES – A COMPARATIVE STUDY ON OLA AND UBER

Australia:-

The taxi industry in Australia relates to the tertiary sector of the

economy associated with taxis in the various Australian states and territories.
The sector is highly regulated and each state and territory has its own history and
structure.

A taxi is generally defined as a motor vehicle licensed to transport passengers in

return for payment of a fare and is typically required to operate and charge on a
fitted taximeter. In Australia taxi fare rates are set by state or territory
governments. A vehicle without a meter is generally not considered to be a taxi,
and may be described, for example, as a hire car, limousine, carpool, etc. Most
taxis today are fuelled by liquid petroleum gas.

Taxi services are particularly valuable to less mobile groups in the community,
such as elderly and disabled people. As a result, government intervention
has historically ensured that taxi services have assisted in ensuring
equity, reliability, quality, and safety. At the same time, regulation has created
barriers to entry and limited competition in the sector. In April 1995,
the Commonwealth and all State and Territory governments entered into
the Competition Principles Agreement the required all jurisdictions to
review legislation which restricts competition by the year 2000. As a
result of pressures from competition law, the Competition and
Consumer Act 2010 (and preceding legislation), and evolving
technology, the regulated industry is facing challenges from deregulated
suppliers, such as Uber and ride-sharing services. Cabcharge Australia owns and
operates the Cabcharge payment system, which claims to cover about 97% of
taxis in Australia, and it operates one of Australia's largest taxi networks.
MARKETING STRATEGY OF CAB SERVICES – A COMPARATIVE STUDY ON OLA AND UBER

CHAPTER-3

PRESENTATION OF DATA

DATA ANALYSIS

AND

FINDING
 MARKETING STRATEGY OF CAB SERVICES – A COMPARATIVE STUDY ON OLA AND UBER

3.1 PRESENTATION OF DATA –

Uber and OLA entered the taxi services as aggregators to provide app-
based taxi services to passengers in major metropolitan cities in India.
Both Ola and UBER offered passenger’s air-conditioned taxi services a
comparatively cheaper fares.

Assured taxi service at a door step to be summoned on the mobile app

gave the passengers the much needed comfort coupled with
reasonable fares. In many cases the fares offered by UBER and OLA
were found to be less than the fares charged by 3-wheeler auto
rickshaws. No wonder, in less than a year's time there was a major
shift of passengers from traditional black & yellow taxis and autos to
the newly introduced air- conditioned app based taxis offered by
UBER and OLA.

This major migration of passengers from traditional taxi/auto services

to app-based taxi services obviously created panic amongst the
taxi/auto owners/drivers as they witnessed losses in their daily
revenues and their very survival threatened. On the other hand,
the passengers - hitherto harassed and exploited by the
taxi/auto drivers had a smile on their face as they got comfortable
journey ride at a most affordable price.

This changing scenario in taxi services brought to the fore the issue of
much-needed competition in the field of taxi services. UBER /Ola
app-based taxi services with use of modern technology and
smart phones triggered the competition and offered the consumers
an attractive option to choose. Although UBER /Ola taxi fares were
largely found to be attractive and affordable to the passengers, there
 MARKETING STRATEGY OF CAB SERVICES – A COMPARATIVE STUDY ON OLA AND UBER

was also some irritant which the passengers did not like and that was
the Surge Pricing by Uber and Ola. The algorithmic pricing by UBER
and Ola at peak hours showed huge spurt in the fares which
the passengers often found unpalatable. In fact, the very algorithmic
fare structure lacked transparency and became the point of debate.
Thus, on one hand Uber/Ola fares were found to be quite attractive, so
much so as to appear like Predatory pricing aimed at killing the
competition and also the competitors and on the other hand the Surge
Pricing, resorted to by UBER / Ola at peak hours when the demand out-
weighed the supply, attracted the charge of undue profiteering.
 MARKETING STRATEGY OF CAB SERVICES – A COMPARATIVE STUDY ON OLA AND UBER

3.2 DATA ANALYSIS –

1) AGE?

( ) LESS THAN 18

( ) 18-30

( ) 30-45

( ) ABOVE 45

Pie chart showing the age group of people

who use OLA or UBER
LESS THAN 18 18-30 30-45 ABOVE 60

14% 10%

12%

64%

INTERPRETATION:-

The above pic chart shows the analysis of different age group of people:-

 10% of the agr group is below 18 years.

 64% of the age group is between 18-30 years.
 12% of the age group is between 30-45 years.
 14%of the age group is above 45 years.
 MARKETING STRATEGY OF CAB SERVICES – A COMPARATIVE STUDY ON OLA AND UBER

2)GENDER?

( )MALE

( )FEMALE

( )OTHERS

pie chart showing the Gender of people who

ride OLA or UBER
MALE FEMALE OTHERS

6%
48%

46%

INTERPRETATION:-

The above pic chart shows the analysis of different gender group of people:-

 48%of the respondents are ‘Male’.

 46%of the respondents are ‘female’
 6%of the respondents belong to the ‘other’ category.
 MARKETING STRATEGY OF CAB SERVICES – A COMPARATIVE STUDY ON OLA AND UBER

3) DO YOU RIDE OLA OR UBER?

( ) YES

( ) NO

Table showing whether the responds ride ola or uber

particular Number of people percentage of people

YES 25 93%

NO 2 7%

pie chart showing whether the respondents

ride ola or uber
YES NO

0%
7%

93%

INTERPETATION:-

The above pie chart shows the analysis of whether the people ride OLA or UBER
or NOT:-

 93% of the responds ride OLA or UBER.

 7% of the responds do not ride OLA or uber.
 MARKETING STRATEGY OF CAB SERVICES – A COMPARATIVE STUDY ON OLA AND UBER

4)HOW OFTEN DO YOU RIDE OLA OR UBER?

()EVERY DAY

()EVERY WEEK

()EVERY MONTH

()ONCE A YEAR

Table showing how often the respondents ride OLA or UBER

perticulars Number of people Percentage of people

EVERY DAY 3 12%

EVERY WEEK 7 28%

EVERY MONTH 11 44%

EVERY YEAR 4 16%

pie chart showing how often

the respondents ride OLA or
uber
EVERY DAY EVERY WEEK EVERY MONTH EVERY YEAR
16% 12%

28%
44%

INTERPRETATION:-

 12%of the respondents ride OLA or Uber every day.

 28% of the respondents ride OLA or UBER every week.
 44% of the respondents ride OLA or UBER every month.
 16% of the respondents ride OLA or UBER every year.
 MARKETING STRATEGY OF CAB SERVICES – A COMPARATIVE STUDY ON OLA AND UBER

5) WHICH ONE ACCORDING TO YOU IS MORE PRICE AFFORDABLE?

( ) OLA

( ) UBER

( ) OTHER

Table showing which cab is more price affordable

particulars Number of people Percentage of people

OLA 10 37%

UBER 14 52%

OTHERS 3 11%

pie chart showing which cab is more price

affordable
OLA UBER OTHERS

11%
37%

52%

Interpretation:-

 37% of the respondents say OLA is more price affordable.

 52%of the repondentsw say uber is more price affordable.
 11% of the repondentsa say other cabs are more price affordable.
MARKETING STRATEGY OF CAB SERVICES – A COMPARATIVE STUDY ON OLA AND UBER

6) WHICH ONE FROM OLA AND UBER APP IS EASY TO USE?

( )OLA
( )UBER
Table showing which mobile app from OLA and UBER is easy to use
particulars Number of people Percentage of people

OLA 14 52%

UBER 13 48%

pie chart showing which mobile app from

OLa and UBER is easy to you
OLA UBER

48%
52%

Interpretation:-

The above pie chart shows the analysis of the mobile app easier to you:-

 52% of the respondents say OLA app is easy to use.

 48%of the respondents say UBER app is easy to use.
 MARKETING STRATEGY OF CAB SERVICES – A COMPARATIVE STUDY ON OLA AND UBER

7) what do you use cabs Maximum for?

( )PROFESSIONAL USE

( )PERSONAL USE

( )BOTH

Table showing what are the purpose we use cabs maximum for

particulars Number of people Percentage of people

PROFESSIONAL USE 3 11%

PERSONAL USE 15 55%

BOTH 9 33%

pie chart showing for which purpose we use

cabs the most
PROFESSIONAL USE PERSONAL USE BOTH

11%

33%

56%

INTERPRETATION:-
 11% of the respondents use cabs for professional purpose.
 56% of the respondentsuse cabs for personal purpose.
 33% of the respondents use cabs for both purposes.
 MARKETING STRATEGY OF CAB SERVICES – A COMPARATIVE STUDY ON OLA AND UBER

8)AIRPORT AUTHORITIES OF INDIA HAS TIED UP WITH OLA AND UBER FOR CAB
BOOKING FROM AIRPORT KIOSKS IN 5 CITIES.DO YOU THINK MANKIND IS HAPPY
WITH THESE FACILITIES?

( )AGREE

( )DISAGREE

( )NEUTRAL

Table showing whether the respondents are happy with the airport tie up with
OLA and UBER or not

particulars Number of people Percentage of people

AGREE 15 55%

DISAGREE 5 19%

NEUTRAL 7 26%

Table showing whether the

respondents are happy with the
airport tie up with OLA and UBER or…
AGREE DISAGREE NEUTRAL

30%

52%

18%

INTERPRETATION :-

 52% of the respondents agree with the dicision of airport authorities.

 18% of the respondents disagree with the dicision of airport authorities.
 30% of the respondents are neutral with the dicision of airport authorities.
MARKETING STRATEGY OF CAB SERVICES – A COMPARATIVE STUDY ON OLA AND UBER

9)IF SO,WHICH CAB ACCRDING TO YOU GIVES MORE AIRPORT FACILITIES?

( )OLA
( )UBER
Table showing which cab gives more airport facilities

particulars Number of people Percentage of people

OLA 12 44%

UBER 15 56%

pie chart showiung which cab gives ore

airport facilities
OLA UBER

44%
56%

INTERPRETATION:-

 44%of the respondents say OLA gives more airport facilities.

 56% of the respondents say UBER gives more airport facilities.
 MARKETING STRATEGY OF CAB SERVICES – A COMPARATIVE STUDY ON OLA AND UBER

10)ARE YOU HAPPY WITH THE CURRENT SAFETY FEATUJRES OFFERED BY OLA AND
UBER?

( )YES

( )NO

Table showing whether the respondents are happy with the current safety
features offered by ola and uber

particulars Number of people Percentage of people

YES 24 89%

NO 3 11%

Pie chart showing whether the

respondents are happy with the
current safety features offered by
OLA and UBER
YES NO
11%

89%

INTERPRETATION:-

 89% of the respondents are happy with currently safety features by OLA and
UBER.
 MARKETING STRATEGY OF CAB SERVICES – A COMPARATIVE STUDY ON OLA AND UBER

 11%of the respondents are not happy with currently safety features offered
by OLA and UBER.

11)DO YOU THINK TRADITIONAL TAXI SERVICE SHOULD BE STOPPED

IMMEDIATELY?

( )YES

( )NO

( )MAYBE

Table showing whether the respondents think traditional taxi service should be
stopped immediately

particulars Number of people Percentage of people

YES 4 15%

NO 17 63%

MAYBE 6 22%

pie chart showing whether the respondents

think traditional taxi services should be
stopped immediately
YES NO MAYBE

22% 15%

63%

INTERPRETATION:-

 15%of the respondents think traditional taxi should stoped immediately.

 MARKETING STRATEGY OF CAB SERVICES – A COMPARATIVE STUDY ON OLA AND UBER

 63% of the respondents think traditional taxi service should not stopped
immediately.
 22% of the respondents may be traditional taxi services should stopped
immediately

12)IN YOUR OPINION,DO YOU THINK GOVERNMENT SHOULD INTERVENE IN

CURRENT SYSTEM OF CAB SERVICES?

( )YES

( )NO

Table showing whether the respondents think the government should stop
intervening in the current system of cab services

particulars Number of people Percentage of people

YES 15 56%

NO 12 44%

pie chart showing whether the

respondents think the government should
stop intervening in the current system of
cab service
YES NO

44%
56%

INTERPRETATION:-
 MARKETING STRATEGY OF CAB SERVICES – A COMPARATIVE STUDY ON OLA AND UBER

 56% of the respondents think government should intervene in current system

of cab services.
 44% of the respondents think government should not intervention in current
system of cab services.

13)WHICH CAB ACCORDING TO YOU HAS THE HIGHEST SEASONAL PRICE

FLUCTUATION RATES?

( ) OLA

( )UBER

Table showing which cab according to the respondents has the highest seasonal
price fluctuation rate

PARTICULARS NUMBER OF PEOPLE PERCENTAGE OF PEOPLE

OLA 13 48%

UBER 14 52%

pie chart showing which cab according to the

respondents has the highest seasonal price
fluctuation rate
OLA UBER

48%
52%

INTERPETATION:-
 MARKETING STRATEGY OF CAB SERVICES – A COMPARATIVE STUDY ON OLA AND UBER

 48% of the respondents think OLA has the highest seasonal price fluctuation
rates.
 52% of the respondents think UBER has the higiest seasonal price fluctuation
rates.

14)WHAT KIND OF IMPROVEMENTS WOULD YOU WANT TO SEE IN OLA AND UBER
SERVICES?

( ) MORE DISCOUNT FACILITIES

( ) MORE SAFETY FEATURES FOR WOMEN

( ) AIRBAG FACILITIES IN CARS

( ) OTHERS

Table showing the kind of improvements the respondents want to see in OLA and
UBER services

Particulars Number of people Percentage of people

MORE DISCOUNT FACILITIES 8 30%

MORE SAFETY FEATURES FOR 10 37%

WOMEN

AIRBAG FACILITIES IN CARS 6 22%

OTHERS 3 11%
 MARKETING STRATEGY OF CAB SERVICES – A COMPARATIVE STUDY ON OLA AND UBER

pie chart showing the kind of

improvements the respondents want to see
in OLA and UBER services
MORE DISCOUNT FACILITIES MORE SAFETY FEATURES FOR WOMEN
AIRBAG FACILITIES IN CARS OTHERS

11%
30%
22%

37%

INTERPRETATION:-

 30 % of the respondents think more discount facilities should be given in OLA

and UBER services.
 37% of the respondents think more safety features for women should be given
in OLA and UBER services.
 22% of the respondents think airbag facilities in cars should be given in OLA
and UBER services.
 11% of the respondents think other improvements should be done in OLA and
UBER services.
 4% of OTHERS think the service should be extended to rural areas.
 4% of OTHERS think they should get more privacy while travelling in
cabs.
 3% of OTHERS think the services should be more area specific and
enhanced GPS facilities should be available.
 MARKETING STRATEGY OF CAB SERVICES – A COMPARATIVE STUDY ON OLA AND UBER

 3.3 FINDINGS:-

1)93% of the respondents ride OLA or UBER while 7% of the respondents do not
ride OLA or UBER.

2) 12% of the respondents ride OLA or UBER every day, 28% of the respondents
ride OLA or UBER every week, 44% of the respondents ride OLA or UBER every
month, 16% of the respondents ride OLA or UBER once a year.

3) 37% of the respondents think OLA is more price affordable, 52% of the
respondents think UBER is more price affordable, 11% of the respondents think
cabs other than OLA or UBER is more price affordable.

4) 52% of the respondents feel that the OLA mobile app is easy to use while 48%
of the respondents feel that the UBER mobile app is easier to use.

5) 11% of the respondents use cabs maximum for professional use, 56% of the
respondents use cabs maximum for personal use, 33% of the respondents use
cabs maximum for both the purposes.

6) 52% of the respondents are happy with the airport tie up facilities with OLA and
UBER, 18% of the respondents are unhappy with the airport ties up facilities with
OLA and UBER, 30% of the respondents are neutral about the decision of airport
ties up with OLA and UBER.

7) 44% of the respondents say OLA gives more airport facilities while 56% of the
respondents say UBER gives more airport facilities.

8) 89% of the respondents are happy with the current safety features offered by
OLA or UBER while 11% of the respondents are not happy with the current safety
features offered by OLA or UBER.

9) 15% of the respondents think traditional taxi services should be stopped

immediately, 63% of the respondents think traditional taxi service should not be
stopped immediately, 22% of the respondents are not sure about their decision.
 MARKETING STRATEGY OF CAB SERVICES – A COMPARATIVE STUDY ON OLA AND UBER

10) 56% of the respondents think the government should intervene in the current
system of cab services while 44% of the respondents think the government
should not intervene in the current system of cab services.

11) 48% of the respondents say OLA has the highest seasonal price fluctuation
rates while 52% of the respondents say UBER has the highest seasonal price
fluctuation rates.

12) 30% of the respondents want more discount facilities in OLA and UBER
services, 37% of the respondents want more safety features for women in OLA
and UBER services, 22% of the respondents want airbag facilities in cars in OLA
and UBER services, 11% of the respondents want other improvements in OLA and
UBER services.
MARKETING STRATEGY OF CAB SERVICES – A COMPARATIVE STUDY ON OLA AND UBER

CHAPTER -4
CONCLUSION
RECOMMENDATION
AND
BIBLIOGRAPHY
 MARKETING STRATEGY OF CAB SERVICES – A COMPARATIVE STUDY ON OLA AND UBER

4.1 CONCLUSION :-
Summing up our project, we come to the conclusion that cab
services have made life easier for daily commuters.

There was a time when people used to rush from one place to another or stand
in queues to hire a taxi. Man’s innovation in the field of science and
technology,now allows public to book cabs online over an android phone. All
that one has got to do now is to create an account using their phone number in
the online cab service apps like OLA, UBER, etc and pinpoint their current location
and state their destination and nearest cab driver will connect the respective
customer and appear at the given location in no time.

People nowadays prefer online cabs over taxi’s because they get A.C. facilities,
foot and assured services, etc at the same fare and sometimes at even lower
fares.

Not only this much, these services are aiming at making life all the more
comfortable by providing options of mutual sharing, choice of cars (according
to the number of seaters).

Hence, the frequency of people using these services, the number of cars
provided by these services are only increasing in number, with every passing
day.
 MARKETING STRATEGY OF CAB SERVICES – A COMPARATIVE STUDY ON OLA AND UBER

 RECOMMENDATIONS :-

1) The cab companies should take some necessary steps for the safety of women
in cabs, basically during night time.

2) The cab companies should train drivers with some common languages which
are used by the people of the surrounding area for their communication.

3) High seasonal price fluctuation creates many problems for middle class people
and lower level people. So they should take some necessary steps to reduce such
fluctuation of prices.

4) Many cab drivers drive roughly which can be dangerous for the passengers as
well as for the pedestrians. So they should advice the drivers to avoid rush driving
for the safety of customers.

5) Few cab drivers behave rudely with the passengers. So, the company should
train drivers to behave properly with their customers.

6) A big disadvantage seen in radio cab services is very less availability of 6+1
seater cars, so if a group wants to go anywhere jointly then they can’t do that.

7) Many people don’t know how to use internet or apps for booking cabs. The
company should do something about it.

8) For taking payment of their services from customers they should start
accepting payment through Debit or Credit Cards.

9) In many small towns there are no OLA and UBER services, so they should make
proper arrangements to connect with these small towns.

10) Cab drivers are not punctual about time which may hamper customer
services. The companies should take some necessary steps to make drivers
punctual about time.
11) Many people want to travel long distances by taking multiple stoppages. This
facility is not available in cab services. Thus, this facility should be started.
 MARKETING STRATEGY OF CAB SERVICES – A COMPARATIVE STUDY ON OLA AND UBER

BIBLIOGRAPHY

WEBSITES :-

 https://www.olacabs.com
 https://www.uber.com/en-IN
 www.business-standard.com
 www.businesstoday.in/current/economy-politics
 https://en.wikipedia.org/wiki/Ola

BOOKS AND JOURNALS :-

 OLA VS UBER: The Battle of Dominance

Dr. Ruchi Shukla , Dr. Ashish Chandra & Ms. Himanshi Jain

NEWSPAPER :-

 TIMES OF INDIA
 BUSINESS STANDARD