Mobile Internet

Uber and Ola: The war that will go on for ages

Uber written on a phone

Uber and Ola, a fight which is going on for almost half a decade now. The two companies have found a common ground it seems from afar but that is not the case. There are small battles still being fought on the ground level. The companies are trying to catch each other off-guard often failing to do so. Both the entities believe that the company which wins the small battles will end up winning the entire war in India.

Ola and Uber are fighting it out on a daily basis. Every single day is D-day for the companies as the numbers are collected and shown to the world almost every single time. The fact that Ola and Uber have completely dominated the Indian market tells us how good they have been. Ola, however, had a three-year head start coming into this competition. The American giant Uber had to play catch up at first and they have.

Uber is winning most of the battles as of now as the Indian company Ola is looking elsewhere. Ola tried to stop Uber from entering India and had a lot of tricks up its sleeves but they couldn’t succeed. Uber came, the Indian company had to share the market. That said, the numbers are equally distributed amongst the companies, Uber wins some battles, most of which are going to help them in the long run, while Ola wins some battles.

The survey to see who is ahead in this taxi-app battle was conducted by Kalagato. Let us start with user recommendations, the app recommendation battle is kind of shared. Uber wins the battle for its Rider application as their Net Promoter Score (NPS) stands at 0.54 while Ola is at 0.46 out of 1. However, the Driver application NPS of Ola stands at 0.72 while Uber loses out at 0.64.

The above information means that Uber riders are more likely to recommend other people than Ola riders while Driver application does better because of the operator app. The operator app of Ola allows the operator, who has one or more cars registered under Ola, to keep a check on his drivers and also allows the person to check the income on a daily basis. This is the reason the driver’s application wins. While Uber’s payments and ease of use make it customer friendly and that is the reason for Uber’s win in that segment.

That said, even if Ola wins in the driver app game, the number of driver application installed is way less than Uber. This tells us that Uber has more drivers and more cars on the road that Ola. In 2018, at the start, Ola was leading with a margin of 10% but then dropped by the end of November. While the graph of Uber just took a leap as by November-end, there were at 65% while Ola was at 35%.

Moving on, Ola does not lose every battle as mentioned. The reach is where Ola gets humongous as they are present in 125 cities while Uber operates in a meager 36 cities. There are $4.3 billion Ola’s on road in the guise of cabs, rickshaws and also two-wheelers. The presence of Ola in so many cities is what is keeping them in the game. The number of installs of Ola app is way more than Uber but that doesn’t necessarily mean the consumers are using their services. The fact that they present in so many cities makes it important for people who travel a lot. But to contradict the previous statement, 80% of Ola’s revenue is generated from metro cities.

To conclude, the fight is tough and to keep up with the market, both the companies will need to innovate and be a step ahead of each other. The duo has managed to co-exist in the market and competition is key to co-existing in business, if there is no competition, there is no innovation and if there is no innovation, there is no progress which in turn means stagnation which leads to the downfall. So, all in all, there is no winner here, it is just two companies, fighting it out, toe to toe with each other.

-Unmesh Phule

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