Business Model of Ola | How does Ola Cabs makes money

Business Model of Ola | How does Ola Cabs makes money

The cab services have grown, especially in India. Finding a taxi for a ride to our destination has become pretty convenient and fulfilling. There are tons of companies that are competing in the market with their on-demand taxi services. And in this race, a well-known company, Ola, has gained the most votes and preferences.

Ola, being India's biggest domestic ride-hailing services company with the greatest rivalry of Uber, in the global market. The company was established in 2011 with the idea of providing the most convenient and fruitful transportation services to the public. Ola provides on-demand cabs to the customers at some pretty reasonable prices, through a mobile application.

‌‌The company serves millions of customers in more than 169 cities on a daily basis. Ola has an enormous customer base, estimated at around 125 million who are officially registered in its application. Ola is quite prominent in foreign countries as well including New Zealand, Australia, and the United Kingdom. In this article, we are going to briefly discuss the business model and strategies of Ola. Let's begin!

About Ola
Where does Ola operate?
Key Services of Ola
Target Audience of Ola
Business model of Ola
What is unique about Ola's business model?
How does Ola Make Money?

About Ola

‌‌Ola, an International ride-sharing company, founded in India by Ankit Bhati and Bhavish Aggarwal, IIT graduates. Ola is owned by ANI technologies. The company provides the service of online booking cabs for our destination, conveniently from our mobile phone at a reasonable cost. It is headquartered in Bengaluru, India.

‌‌In the beginning, Ola didn't have any specific mobile application for customers to book cabs. They used to provide the cab directly through their call centers. The customer calls the team at the Ola call center where the employees search for an available cab and book it for the customer to reach their destination and provide the customer's address to the driver. Today, Ola has more than 125 million active users on its mobile application and has grown immensely.

‌‌After expanding the taxi services across India, the company took its services at the International level in countries such as Australia, the United States, and New Zealand by the year 2019. As of the last estimated data in 2019, Ola's valuation was worth $6.2 billion. Currently, the company has grown more promptly.

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Where does Ola operate?

‌‌Ola is known as India's biggest ridesharing and transportation company, which has earned enormous success at the International level. Ola is counted among the world's largest ride-hailing companies. It serves in countries including Australia, New Zealand, the United Kingdom, and around 250+ cities and towns in India.

Key Services of Ola

‌‌Ola offers tons of services at different levels ranging from economic to luxury. The bookings are facilitated through its mobile applications as well as through the website. On average, Ola daily receives 15, 000 bookings. Ola also has around 60% market share in India. Ola offers various services such as vehicles for hiring, digital wallet, food delivery, mobile payment, and many others.

Target Audience of Ola

‌‌Ola generally targets its audience in various segments. It majorly focuses on people in the age group of 20-45 years who are financially independent, young, office workers, college students, and many others.

Business model of Ola

‌‌Ola was initially started as a Taxi Rental Fleet Business which later stepped into the bigger marketing dimensions as a ride-hailing company.

Ola changed its marketing strategies in 2015 when it found an incredible opportunity on the digital platform and that's when the online cab services came into full force on the Internet.

Ola entirely changed its business model and opted for digital marketing. The company wholly shifted to an online application, Ola App. Its business model was altered into a moderator between the customer and the taxi drivers. Its online application connects the taxi drivers with the customers.

‌‌Ola's mobile application is absolutely smooth and runs by registering the users on its app and allowing it to detect the customer's location through GPS. Then, the customer puts the destination and gets various cab categories with their respective prices.

Through these options, the customer can choose the most suitable cab and book it for them. Later, the drivers complete the verification with an OTP sent on the customer's phone. And the customer gets smooth and convenient service.

What is unique about Ola's business model?

‌‌Ola provides on-demand taxi services very smoothly to its customers. The most significant thing about its business model is that it follows a two-way model and serves its customers and drivers too.

How does Ola Make Money?

‌‌There are tons of ways through which Ola generates its revenue. These ways are:

Trip commission

Through this, the company charges some percent of commission on the total cost of a cab ride. This varies on several factors like base fare, waiting time, cab demands, and others.

Credit card

Through this, customers get various rewards on paying via credit card.

In-cab advertising

The customer gets various ad pamphlets and brochures from the company to promote its brands and products.

Food delivery

Recently Ola has introduced a food delivery division to its company, to enhance its gross profit.

Corporate deals

Ola deals with various corporate companies to facilitate its business traveling's. Ola charges little reduced rates and it earns a higher sales volume.


‌‌In the past few years, Ola has gained enormous success and appreciation from the customers for its amazing services and products. Ola's ultimate goal is to provide the safest, convenient and extraordinary ride to the customer at reasonable prices. Ola has redefined its marketing strategies since it shifted to the digital platform. The company had gained millions of customers as well as some very incredible business deals.


Who is the founder of Ola?

Bhavish Aggarwal and Ankit Bhati founded Ola cabs in 2010.

What is the revenue of Ola?

The revenue of Ola was 2,544 crores INR as of 2019.

What is the valuation of Ola?

The valuation of Ola is around $3.3 billion as of 2021.

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