Comparative Study of of Uber and Ola
Comparative Study of of Uber and Ola
Comparative Study of of Uber and Ola
ON
Submitted by
VIPUL TYAGI
BBA (2019 – 22)
System ID.: 2019645626
The research project report on “COMPARATIVE STUDY OF UBER AND OLA " has been undertaken
as a partial fulfillment of the requirement for the award of the degree of BBA of Sharda University . I
hereby declare that this Project is my original work and the analysis and findings are for academic purposes
only. This project has not been submitted by the any student earlier to any other institution/ university.
VIPUL TYAGI
ACKNOWLEDGEMENT
It is with a sense of gratitude, I acknowledge the effort of whole hosts of well-wishers who have in some
way or other contributed in their own special ways to the success and completion of this project.
I wish to offer my deep veneration to Dr. Hannah Hameed, Faculty Guide, Sharda University , Gr. Noida,
for guided me with all aspects on the entitled “COMPARATIVE STUDY OF UBER AND OLA "
The BBA programme is so designed that student get enough practical knowledge of business
world which helps them to explore their skills in the corporate world in future. The BBA
programmer helps the students to understand and gain knowledge about the industry and market
environment it develops skills of analyzing and interpreting problems through application of
concepts and techniques of management. I did a project on competitive view on COMPARATIVE
STUDY OF MARKETING ANALYSIS OF UBER AND OLA. The study consists of the
following chapters.
CONTENTS
PROJECT PROFILE
2 CHAPTER-2
MARKETING MIX
4 Chapter-4 11-20
MANAGING THE MARKETING EFFORT
MARKETING STRATEGY
DISTRIBUTION STRATEGY
CONCLUSION
RECOMMENDATION
BIBLIOGRAPHIES
WORDS OF THANKS
CHAPTER- 1
EXECUTIVE SUMMARY
PROJECT PROFILE
As a course requirement for Principles of Marketing, F-204, the term project is on the
The main objective of the report is to have an overview of UBER and OLA to understand
Achieving practical knowledge about the Marketing Analysis Of Uber and Ola and being
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able to relate the lessons that had been taught in the class with regard to those scenarios,
applying them where needed, getting to know the history, marketing mix, strategies of
UBER and OLA and their scope of application in real life is the secondary objective of
the project.
This study is basically conducted by collecting and analyzing data from both primary and
secondary sources. For collecting information we searched and browsed through various
websites country with a view to getting a clear picture of what we are doing and
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CHAPTER-2
Segmentation is the process of dividing the market into the groups of homogeneous
characteristics. Uber and Ola uses a mix of demographic and geographic segmentation
Both geographic and demographic segmentation is important because Uber and Ola
needs to know which areas to target for customers who are ready to use an “on order
transportation service” over public transport services. You will not find Uber and Ola in
Rural areas but mainly in urban areas only where it replaces taxis
Differentiating targeting strategy is used by Uber and Ola in order to the share of wallet
customer brings in and how to increase wallet size by upselling. If we want to define the type
of differentiation used by Uber and Ola, then we can use the terminology “Cost based
differentiation”. Because of the very structure of Uber and Ola as a company, there is a huge
pricing advantage to the end customer when they compare Uber and Ola taxis vs publicly
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Differentiation strategy of Uber and Ola
Technology based differentiation is also a primary source of competitive advantage for the
brand. Technology is the main enabler of its services and plays a central role in its business
model. It is the Uber and Ola app that connects the riders with the taxi drivers, allows them to
pay for the services and rate their ride and convenience. Before the introduction of Uber and
Ola, booking a taxi ride was not as easy and people had to pay higher while the waiting time
for a taxi could also be longer. Now, a ride can be available .within minutes after booking.
You click and the nearest available taxi responds. Customer convenience here becomes an
important differentiating factor for the brand. Since the level of convenience is higher, .it
adds quality to the service and therefore become as a source of competitive advantage for the
business. This is how the brand has used a mix of cost leadership and differentiation to build
competitive advantage.
User benefit based and pricing positioning strategy is used by Uber and Ola to attract
customers from different strata of the society. Because day to day travel is a huge cost to
customers, positioning on the basis of Economy makes a huge difference in the mindset of
the customers.
RESEARCH METHODOLOGY
This research is focused on Ola and Uber users in MuBBA i area and specifically targeted to
working professionals. After literature review gaps have been identified and questionnaire
has been designed to collect the data. Primary data for the study was collected through online
survey method, using a structured questionnaire which was designed based on literature
review. All the responded were from MuBBA i and data was collected from February 2017
to
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March 2017.To full fill the Objectives and based on literature review following hypothesis
H1: There is significant difference between demographic profile of Ola and Uber users.
H11: Gender has significant impact on choice of cab services.
H12: Age has significant impact on choice of cab services.
H12: Income has significant impact on choice of cab services.
H2: There is significant difference between Ola and Uber consumer’s perception towards safety.
H3: There is significant difference between Ola and Uber consumers satisfaction level.
After data collection data has been analyzed using SPSS and finding of same is as
follows. Total number of respondents were 103 out of which 51 were Ola users and 52
Hypothesis Testing
To identify the difference between demographic profile of Ola and Uber users’ including
impact of gender, income and age, hypothesis have been tested using Chi square test. The
result obtained indicated that gender has significant impact on choice of cab service
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CHAPTER-3
Marketing Mix:
It refers to the set of controllable tactical marketing tools-product, price, place and promotion
that the firm blends to produce the response it wants in the target market. The marketing mix
consists of everything the firm can do to influence the demand for its product.
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Product
Product means the goods and services combination the company offers to the target market.
Product includes
➢
Variety
➢
Quality
➢
Design
➢
Features
➢
Brand name
➢
Packaging
Getting the food you love delivered: Order from your favorite restaurants, online or in-app.
The restaurants will prepare your order, and a nearby Uber and Ola delivery partner will
Flexible Shipping: Uber and Ola Freight is a free app that matches carriers with shippers.
Shippers tap a button to instantly book the loads they want to haul. And thanks to upfront
The road to self-driving vehicles: This innovative team is dedicated to building safe,
reliable, and cost-effective self-driving technologies. With teams in Detroit, Pittsburgh, San
Francisco, Tempe, and Toronto, the group is bringing self-driving cars and freight trucks to
Reliable and comfortable rides for patients: We’ve partnered with healthcare
organizations to provide flexible ride-scheduling options for patients, caregivers, and staff.
Healthcare professionals can schedule rides for patients and caregivers going to and from the
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care they need, all from a single dashboard.
Price
Price is the amount of money customers must pay to obtain the product .Marketers of Uber
and Ola wants to negotiate prices with each customer by offering discounts, trade-in-
allowances and credit terms. These actions adjust prices for the current competitive situation
❖ list price
❖ discounts
❖ allowances
❖ payment period
❖ credit terms
Uber and Ola sets his prices depending on the city customer ride on Uber and Ola. Trip fares
are of two kinds. One is upfront fares and the other is post trip fares. In upfront pricing one
knows the exact costing of trip before requesting. This fare includes a base rate, rates for the
estimated time and distant of the route as well as the current demand of the area. Some cities
do not provide upfront fares. Instead, you're charged either a minimum fare or a fare based on
the time and distance for your trip's route, including a base fare, booking fee, surcharges,
tolls, and other relevant factors such as dynamic pricing when demand for rides is high in the
area of the city where you're requesting a ride. Fares may vary by location, the vehicle option
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Place:
Place means company activity that make the product available to target customers. Despite
being active in more than 760 cities, Uber and Ola does not have too many offices due to
network nature of its business model. Anyone can become a customer at any time, simply by
downloading Uber app. The five top countries where the ride-hailing giant is the most active
are US, Brazil, China, Mexico and India. Uber and Ola connects places to their customer on
online media coverage as well as different channels by giving their locations and
transportations.
Promotion:
Promotion manes activities that communicate the merits of the product and persuade target
customers to buy it. Dealership and sales people plays an important role here. Promotion
includes:
❖ Advertising
❖ Personal selling
❖ Sales promotion
❖ Public relations
Uber and Ola advertises there activities on their website and blog pages. Uber and Ola offers
a trip's fare promo code should be used. Valid promo codes are automatically applied in
reverse order. Most recently added promo code will be applied to current or next trip. A
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promo code's value will only apply to one trip fare. Any remaining amount disappears. In
addition to promotions, Uber an Ola credits can be applied whenever you want. Credit
Uber and Ola ensures that everyone involved in their company is completely satisfied. Which
is why they provide customer promo codes, which includes free ride credits. That’s also why
they offer short-term and long-term partnerships to virtually everyone and any business. It
broken down into two parts: promotions for drivers, and promotions for riders. In an effort to
get drivers onto the platform, Uber and Ola offers new drivers massive sign-on bonuses
worth hundreds of dollars. To get new riders onto the platform, the company offers free ride
credit good towards their first ride. These promotions have proved to be incredibly effective
so far and played a massive part in Uber’s and Ola rapid growth.
For personal selling, Uber and Ola uses its semi to luxury transportation vehicles to allow the
customer to feel comfortable using the service, as well as continuing to use the service. With
transportation services this type of relationship should be developed in order for continued
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CHAPTER-4
situation. The marketer should conduct a SWOT analysis, by which it can evaluate
countries. Uber has already surpassed Automobile giants like Motors, Ford and
coming of age technology, Uber is expected to grow rapidly in the coming years.
It is currently valued at over $68 Billion. Due to the high valuation of brand,
Low Fixed Investment: Uber, being an aggregator does not require high fixed
investment and so it becomes easier for Uber to add more cities to its network. It
required.
survey comparing the customer satisfaction of Uber and Ola in India has clearly
shown that Uber is far ahead. About 65 % chose Uber over Ola when it comes to
user experience.
Dynamic Pricing Strategy: Uber has adopted the dynamic pricing strategy
which works on the demand supply principle of economics. Higher the demand,
Higher the price. This becomes really beneficial for the company and the
drivers. In peak hours as well as in Night time, drivers earn a good amount of
money.
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To be a smart marketer and has adapted very well wherever it has established its
business.
Growth rate: The growth rate of Uber can be seen below. This concerns growth rate in
India only. As we can see, Ola is expanding by more than 100% year on year and this
Highly Dependent on Manpower: Drivers are the face of the company and thus the
company’s image depends on the behavior of drivers towards the customer. This is a
highly uncontrollable situation even though strict guidelines are provided to the drivers.
Caters only to Tech Savvy individuals: Digital Literacy in developing nations is low
and hence technology based applications such as Uber only cater to those who are
technologically updated.
unorganized cab market which presents an opportunity for Uber to take advantage of.
This is one of the main reasons for the success of Uber. Local cab drivers are known to
of smartphones are increasing and technology based applications like Uber can expand
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their services to other cities and enlarge its footprint over the country. 9
Rising Disposable income: With rising disposable income, customers are willing to
Alternate transport: Uber has launched ‘Uber chopper’ in various countries and can
look for other transport medium catering local needs. In India, Uber can launch Bus
aggregator system.
Poor government transport: In markets like China and India where there is over
population and people are tired of using public transport, Uber provides a kind of privacy
and relief where the user gets his own space to travel and does not have to drive in
Traffic.
Special transport: Uber can provide special transport services such as paid ambulances
Logistics: A smart idea for Uber can be to launch movers and packers support whereby
people can search movers and packers in the nearby area via Uber. Local logistics can
Government regulations are unclear: The primary point of disagreement between cab
aggregators and government regulators is about their legal status and whether they should
Customer retention and switching: As competition rises, it becomes all the more
difficult to retain customers and drivers for Uber. Any monetary advantage can sway the
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Low margins: Uber helps the drivers to get a high number of daily rides but it does not
have a high-profit margin for the drivers and thus they can easily be swayed away. 10
Revolt from unorganized market: The unorganized market of cab drivers can revolt
against such companies which are taking away the bread and butter of drivers from
unorganized market. Such a revolt will directly affect the operations of a brand like Uber.
Ola Strengths
Below are the Strengths in the SWOT Analysis of Ola:
➢
First mover advantage as a taxi aggregator in India
➢
Acquisition of Taxi For Sure made it No. 1 in India
➢
Top of the mind service
➢
High awareness due to aggressive TV, online and print media marketing
➢
Huge customer base & due to network effect it is increasing
➢
Rapid expansion and online application
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➢ Multiple rounds of VC investments have made the brand financially strong
Ola Weaknesses
➢
Here are the weaknesses in the Ola SWOT Analysis:
➢
Drivers are the face of the company and hence their misbehavior directly affects
the brand image
➢
While the demand is huge, amount of cash burning is huge and monetization is
very difficult
Ola Opportunities
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o Acquisition of smaller players
Ola Threats
➢
The threats in the SWOT Analysis of Ola are as mentioned:
➢
Rising competition
➢
Uber has deep pocket and hence can burn cash heavily
➢
Presence of many national players
➢
Absence of clear government regulations in developing countries
➢
Future is unclear due to lack of regulations and Customer loyalty is less in this
industry
Marketing Planning of
Uber
Through strategic planning, Uber decides what it wants to do with each business unit.
Marketing planning involves deciding on marketing strategies that will help the company
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attain its overall marketing objectives. A detailed marketing plan is needed for each
business, product or brand. The plan begins with an executive summary that quickly
given here.
Ola
Segmentation, targeting, positioning in the Marketing strategy of Ola – Ola have been
using segmentation parameters such as geographically dividing the market it serves into
urban & metro in order to devise promotional and business strategy based on demand in
these markets.
Executive Summary:
Uber
Uber marketing strategy will position itself as the primary transportation service in the
minds of business people and millennial. The quality of UberX experience will provide
more personal, on-demand and efficient approach to the car service industry. The new
action programs will be launched to include the implementation of Uber kiosks, a revised
social media campaign and a new Refer a friend program. Based on the first year
objective, the new Uber budget plans for a 100% increase in profit. Uber will closely
monitor drive and customer satisfaction, brand awareness and the overall brand image to
Ola
Ola have been using segmentation parameters such as geographically dividing the
market it serves into urban & metro in order to devise promotional and business strategy
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basis of customer income profile such as Ola Luxury, Prime, Ola share, autos.As the
company serves different customer segments i.e. long route outstation customers,
customers within 8 Kms, Shuttle service and shared services, therefore it uses
Marketing Strategy:
Uber
Uber maintains more for less marketing strategy. The strategy is based on the experience
they gave their customer and how much value is getting versus how much they pay, when
compared to the common cab company. Uber will position itself as the primary
transportation service in the minds of business people and millennial. The quality of the
Uber experience will stand out from the competitors with a more personal, on-demand
Ola
Ola cabs have been using segmentation parameters such as geographically dividing the
market it serves into urban & metro in order to devise promotional and business strategy
based on demand in these markets. Also, it segments customers on the basis of customer
Distribution Strategy:
Uber
Uber will expand its operation in large cities, coinciding with the objectives for nest two
years. Having more drivers will decrease the wait times and be even more efficient for
meeting customer meets. Uber will expand the apps reach to other platforms, including
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windows and android systems.
Ola
Operating in 180+ cities in India Ola Cabs serves more than 8,00,000 customers every
day by empowering and collaborating with around 10,00,000 drivers in its platform. Ola
Cabs works with a Platform wherein a customer can easily book a Cab and drivers can
easily get passengers by paying commission to the company. In the process Ola Cabs
does not need to own any car, any driver with duly authorized and verified by transport
authorities can work with Ola. Ola has a dedicated team of 6000 employees who work
Marketing Implementation
Implementation is as important, sometimes more important than planning and strategies.
Uber and Ola needs to execute the plans properly. Uber and Ola turns marketing plans
into marketing actions in order to accomplish strategic marketing objectives. Uber and
Ola executives’ drivers and all other people of different levels work together to
implement marketing strategies. At Uber and Ola both , marketing implementation for
the vehicles, tools necessary for repairing the vehicles and other equipment require day to
day decisions of thousands of people both inside and outside the organization. Marketing
managers make decisions about target segments, branding, packaging, pricing, promoting
and distribution.
Marketing Control
Marketing control evaluates the result of marketing strategies and plans and taking
corrective action to ensure that objectives are attained. Control is based on four steps.
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CHAPTER-5
REASEARCH METHOLODGY
Research Setting
In order to test the aforementioned hypotheses, a quantitative study was conducted at
one of the largest public universities in Malaysia whose respondents comprised a mixture
of local and international students. The respondents were chosen because of their easy
access to several online food ordering companies operating nearby such as Pizza Hut,
Data Collection
The questionnaires were distributed to 600 undergraduate students of the Kulliyyah of
Economics and Management Sciences requesting them and their friends or family
members who had experienced ordering food online to participate in the research project.
Using a questionnaire is the most economical method of data collection, allowing for
strongly disagree to strongly agree. Website quality consists of four scales namely
information quality, website design, security and payment system. Information quality
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the items initially developed by Jeong et al. (2003) and Muylle et al. (2004). On the other
hand, website design will be evaluated from four aspects: navigation, colour combination
and ease of use.The survey instrument consists of two sections. In the first section,
respondents were requested to rate their agreement on statements related to their latest
online food ordering experience. Each item was measured on a 7-point Likert.
Data Analysis
This study comprises three sections of data analysis. The first section is descriptive
analysis based on the demographic information of the respondents. The second section
discusses the validity of the research variable based on the confirmatory factor analysis.
Lastly, section three analyses structural equation modelling and test the hypothesized
relationship.
Questionnaire and observations are the Methods available, for collecting data.
Its versatility. Almost every problem in marketing research can be studied only by
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QUETIONNAIRE IS OF THE FOLLOWING TYPES:
marketing research are of this type. A structured interviews of this type introduced
gives more reliable results. The purpose of the question is clear and thus undisguised. It
2. Got the provision for alternative response that helps in making the questions
clear.
questionnaire is distinguished by the fact that the purpose of study is clear but the
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4. Structured-Disguised Questionnaire: These are the least used in the marketing
the sub-conscious and hidden motives and attitudes along with the advantage in coding
2. OBSERVATION METHODS:
Each of the classification has some impact on the quality of the data collected.
UNIVERSE:
The universe is the entire group of items researchers’ wishes to study and which
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SAMPLING
Types of Sampling:
Non-Probability Sampling.
1. Probability Sampling
b) Systematic sampling
c) Stratified sampling
d) Area sampling
2. Non-Probability Sampling
a) Convenience sampling
b) Quota sampling
c) Judgment sampling
d) Panel sampling
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SAMPLING UNIT
Sampling unit contains the particular units being studied and which generally reflects
the desired response that is most of the traits that the universe has. SAMPLING
PROCESS
Two general classes of methods exist for selecting samples. These are probability
Probability sampling methods are those in which every item in the universe has a
known chance or probability of being chosen for the sample. This implies that the
selection of sample items is independent of the controlled activity so that the items are
This method does not provide all the items in the universe with a known
chance of being included in the sample. The selection process is at least partially
subjective.
A preliminary study of the mothers using baby soaps was done by this
method of research. For this purpose structured and non-structured questionnaire was
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Prepared and administered to various customers in different market segments and
2. Personal Interview
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CHAPTER-6
SOURCES OF DATA COLLECTION
Data regarding the history of the concern are collected by using secondary
sources
i.e.
➢ Through internet
For the collection of the data regarding survey only primary method is used i.e.
➢ Questionnaire
And for the comparison of different categories of a/c’s both primary as well as
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CONCLUSION
Conclusion
Ola has seen a tremendous growth in the taxi market sector. There is surely no looking
back for Ola as it is improving day by day in every prospect. Revenue of Ola has
increased almost 10 folds over the past four years. Today, it is the largest cab service
provider in the country. Ola has successfully achieved public support and has created a
buzz about its brand in the market. Furthermore if some more technological advancement
is done at Ola then the customer base can be increased by providing better experience to
the customer.
By collecting information about Uber we have gone through the marketing mix and the
strategies of this company. We understood all the growth strategies and marketing
strategies it use to grow its market share and to expand their market presence. We could
go through its marketing mix that it blends to produce the responses it wants in the target
market. Also market analysis of Uber make its company know to the strengths,
weaknesses, opportunities and threats which is necessary to manage the market function.
Last of all, Uber makes implementation of its all planning and then evaluates the result of
marketing strategies and plans to ensure that objectives are attained. Thus, Uber makes
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RECOMMENDATION
Uber could introduce a system so that you can book a ride in advance, and not have to
worry that no car is available when you need to get to the airport.
Ola does have such a system, but it is not reliable (so I was left stranded when I had to
catch a flight).
Ola could learn a lot from Uber about customer support when things go wrong. If you need
support from Uber you can contact them at no cost: when I needed support from Ola I had
just finished my credit and so could not call them. And when I let Ola know that my ride
had just cancelled my booking and I had to get to the airport they promised another ride
but did nothing. When I told Uber about a similar problem they found a car for me.
And I think that the surge pricing is a good idea: if you want to travel at a busy time then
pay the market price for doing so. There has to be some reward for drivers who work when
the traffic is bad, and if there are more passengers than rides then give the rides available
to the passengers willing to pay most for them (and this will also encourage more drivers
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BIBLIOGRAPHI
• Allamdas Rohit H. (2017) ‘A Study of surge pricing by Uber & Ola legal in India’, ‘Airo
System. International Conference on Computer Science and Service System (pp. 281-
• Dr. Kavitha and R. Rajeswari (2017), Mobile wallets usage in taxi companies- problems
& Challenges. International Journal of Informative & Futuristic Research. ISSN: 2347-
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WORDS OF THANKS
At the end I thank everybody who helps me direct or indirectly in doing this project. I
also thank readers and solicit their comment on our work. Very humbly I request our
readers to let me know about any of the mistakes I did during the project and also which
is apparent in the report. Last but not the least I am grateful to my Guide Ms. POOJA
GOEL who spared her valuable time for me, without of her this work would not have
come true.
I also thank to my college which gave me the opportunity for doing the
project on the marketing analysis of Uber and Ola which is part of BBA .
VIKK
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