Transportation is one of the oldest businesses in the world, and it can never go extinct because as long as the world continues, people will always need to move around from place to place. The transport business is also one business in which you can make cool cash. If you are looking to start a transportation business, you have come to the right place. The transportation industry is vast and offers a wide range of opportunities for entrepreneurs who are willing to put in the work to build a successful business.
Large transportation companies enjoy economies of scale when it comes to purchasing power and the ability to provide a broader range of services. However, small transportation businesses can compete better in local and regional areas by offering personalized services that larger companies may not be able to provide. The industry is largely fragmented, with 40% of revenue generated by the 50 largest firms. This means that there is a significant opportunity for small and mid-sized transportation businesses to carve out a niche in the market and compete effectively against larger players.
In this blog, we will explore some of the most profitable transportation business ideas, including car hire, trucking, bus transport, shipping service, air cargo, and more. We will also provide tips on how to start a transportation business so you can be on your way to building a successful venture in this exciting industry. So, whether you’re a seasoned entrepreneur or just starting out, let’s dive in and explore some of the best, most profitable transportation business ideas that can help you achieve financial success.
How to Start a Transportation Business?
Starting a transportation business requires careful planning and research to ensure that you have a solid foundation for success. Here are some general steps to follow when starting a transportation business:
Develop a Business Plan: Start by creating a business plan that outlines your transportation business idea, target market, competition, financial projections, and marketing strategy. This will help you organize your thoughts and ensure that you have a clear understanding of your business goals.
Choose a Legal Structure: Determine the legal structure of your business, such as a sole proprietorship, partnership, LLC, or corporation. Each has its own benefits and drawbacks, so it’s important to research and choose the structure that best suits your needs.
Register Your Business: Register your business with the appropriate government agencies, obtain any necessary licenses and permits, and comply with all applicable regulations and laws.
Acquire Vehicles: Depending on the type of transportation business you want to start, you may need to acquire vehicles. This could involve purchasing or leasing vehicles or even partnering with other transportation providers to create a fleet.
Hire Staff: Determine the number and type of employees you need to operate your business, such as drivers, dispatchers, and administrative staff. Develop a recruitment strategy and create job descriptions to attract the right candidates.
Set Prices: Determine the pricing structure for your transportation services based on your costs, competition, and market demand. Be sure to factor in all costs associated with operating your business, such as fuel, maintenance, insurance, and wages.
Develop a Marketing Plan: Create a marketing plan to promote your transportation services to potential customers. This may involve traditional advertising methods, such as print or radio ads, as well as online marketing strategies, such as social media and search engine optimization.
Starting a transportation business can be a challenging endeavor, but with the right planning and execution, it can be a profitable and rewarding venture. It’s important to conduct thorough research, seek advice from industry experts, and be prepared to adapt to changes in the market.
Most Profitable Transport Business Ideas
The following are some of the most profitable transport business ideas in Indiathat can prove to be successful and lucrative:
One of the most profitable transportation business ideas is a towing business, as you can start with just one towing truck. Your job will be to help move broken-down or illegally parked vehicles to a designated place.
To open a transportation company, you need to obtain a license or operate an automotive towing business, which can be a frustrating task since auto-towing licenses are heavily regulated.
Some operators of towing companies forego the license entirely and don’t provide towing services to the general public; instead, they only subcontract their services exclusively to car dealers and property managers. The alternative to waiting to be awarded a towing license is to purchase one from an existing towing operator or company.
Car Towing Service Market Size (2021-2030)
2. Taxi Cab Business
Best Transport Business Ideas – Taxi Cab Business
The cab business is preferred by those who want to have a chauffeur drive them. While taxi cabs are known to pick up customers from the road, private hire taxi cars serve customers who make a prior booking. One of the most profitable driving business ideas is that of a driver who can use their vehicle, so startup costs are relatively low.
Depending on the brand and condition of the car (new or second-hand), a suitable vehicle for a taxi or cab business can cost between INR 10,000 and INR 45,000. The cab business is the most successful transport business idea because taxi cabs are often regulated in most cities; they must be registered with the relevant city council authorities. This is why Uber and Ola have become successful unicorn companies.
3. Trucking
Transport Business Ideas – Truck Business
The truck transport business is another profitable business idea in India, as large chunks of imported goods need to be transported to several towns and cities until they reach the small retailers and final consumers. Trucking and haulage are the vital links that connect imported, manufactured, and cultivated goods to final consumers like us. Lorry businesses, like hiring heavy-duty trucks and tankers, may be at a standstill. Truck transport business ideas play a crucial role in facilitating the smooth flow of goods and ensuring commerce continuity, and can help you earn a good profit. Trucking can be one of the most profitable truck business ideas.
4. Car Rental
Transport Business Ideas – Car Rental
The car rental transport business is a lucrative career option that is similar to cab business ideas. It can be especially profitable when located in strategic locations such as busy cities with large populations, commercial centers, and entertainment districts. However, unlike the cab business, car rental companies have stricter safety standards that they must adhere to before they can provide vehicles for hire.
If you are considering starting a car rental business, your first step should be to purchase vehicles that meet these safety standards and also have features that can help reduce their impact on the environment. This is especially important since many modern consumers prioritize sustainability and eco-friendliness when making purchasing decisions.
Car rental services are also popular amongst tourists and people visiting a new location for a short period of time. By offering quality vehicles at competitive prices, you can attract a broad range of customers and establish a loyal customer base, making it an ideal venture for a transport business startup.
To succeed in the car rental business, it is essential to have excellent customer service, maintain your vehicles regularly, and stay up to date with changing market trends. By staying ahead of the curve and offering innovative services, you can build a profitable and sustainable transport business that meets the needs of your customers.
Best Transport Business in India – ZoomCar Business Model
5. Bus Transport Services
ITransport Business Ideas – Bus Transport Services
For many travelers, air travel is not always a feasible option due to cost or other factors. As a result, ground travel via buses or trains remains a popular alternative. If you are interested in starting a bus transportation business, it can be a lucrative opportunity to explore.
To start a bus transportation business and explore the bus business ideas, you will need to purchase a vehicle that can accommodate your target market’s needs. Once you have your vehicle, you can hire a driver or learn to drive it yourself if you have the required license and expertise.
Another option is to affiliate with an established transportation company, which can provide you with access to a larger customer base and an existing network of support services. This can be especially useful for those who are just starting out and may not have the resources to invest in their own infrastructure.
Regardless of the approach you choose, customer service is crucial to success in the transportation business.
With the increasing demand for shipping services that offer reasonable prices and promise convenience, speed, and reliability, no other time could be better than now for taking a plunge into the shipping business. The shipping industry is growing and rapidly changing, thanks to the increasing dependence on online shopping. The shipping business ideas are highly capital-intensive and competitive. However, it is one of the most profitable businesses in the transportation sector.
7. Driving School Service
Transport Business Ideas – Driving School Service
If you are very good behind the wheel, you can start a driving school and teach people how to drive. Every year, anxious teens who have attained the driving age requirements and even adults who don’t know how to drive approach driving schools to learn how to drive.
If you are looking for a steady source of income in the automotive industry, driving school is a lucrative business where you can teach people how to drive.
It is important to state that before starting a driving school, you will be required to obtain the required license, permits, and approval from the appropriate authority in your country. But apart from the little stress involved in securing approval, a permit, and a license for a driving school, it could be fun teaching people how to drive, especially if driving is one of your hobbies. By providing top-notch instruction and exceptional customer service, you can establish a reputable driving school that attracts a steady stream of customers and generates a healthy profit.
8. Limousine Services
Transport Business Ideas – Limousine Business
Limousine is a profitable transport idea; you could provide limo service to celebrities or regular people. Whenever anyone entrusts you to drive them, a clean reputation is important. But in the case of the personal limo service, typically you’ll be driving a group of people who aren’t paying attention to where you’re going or how you’re driving but are enjoying the ride.
In order to start a limousine transport company, the driver needs to be supremely trustworthy, and the vehicle needs to be safe and well-maintained. For this, you can provide all the services yourself, from scheduling to driving. If you want to expand, just add vehicles and drivers and keep expanding your marketing to keep business flowing.
Boats are more than a source of transportation or a fishing aid. They are now used as a recreational facility. It is not uncommon to see people take boat trips during the holidays. Some people even hold events onboard boats.
If you have sufficient funds, you can have a boat made for you or buy one that you can start renting to people. For businesses like boat charters, a transportation business license is a must.
10. Air Cargo Business
Transport Business Ideas – Air Cargo Business
The sea is not the only means through which cargo can be brought in; starting a transportation business like air cargo is also profitable as the air can also be utilized in transporting containers. In 2014, airlines transported 51.3 million metric tons of goods, representing more than 35% of global trade by value but less than 1% of world trade by volume.
With the right tools and equipment, even though very costly, you can start an air cargo transport business by helping businessmen transport their goods faster and in a safer way.
Worldwide Revenue of Cargo Airlines (FY2008 – FY2022)
11. Livestock Transportation
Transport Business Ideas – Livestock Transportation
Livestock is a key part of many industries and plays an important role in their supply chains. However, transporting livestock is more challenging than moving other types of goods, requiring specialized transport services. This need creates opportunities for new entrepreneurs in the transport business.
Transporting livestock can be one of the best business ideas for small-scale investors in India. The agricultural sector frequently needs to move poultry, cattle, and pigs. Not only is it important to transport livestock safely, but by doing so, you can also meet the essential needs of farmers and tap into a high-demand market. Overall, livestock transportation is a highly promising transport business idea in India.
Best Transport Business Ideas – Healthcare Transportation
Healthcare transportation includes ambulances for emergencies and help for road accident victims. With more older people starting a medical transportation business can be a good idea. This service helps seniors, people with disabilities, and patients get to medical appointments.
To start, you’ll need wheelchair-accessible vehicles, trained drivers, proper certifications, and marketing to healthcare providers and community groups. Profit depends on your rates, the number of clients, insurance payments, and how well you run the business. Medical transportation services can make a profit of 10 to 20%.
13. Moving Company
Many entrepreneurs are exploring logistics business ideas due to the rising eCommerce and supply chain needs. You can start a moving business with just one truck and a few strong team members. Advanced logistics technology isn’t necessary, but experience in handling household and office items is essential.
Moving companies help relocate belongings, offering services like packing, shipping, and transporting household items. They handle both local and long-distance moves.
Charges are usually based on hourly rates or the specific job, so pricing must be planned carefully. Starting also requires investing in essential moving equipment, such as trucks and dollies.
14. Delivery Service
With the rise of e-commerce, last-mile delivery services are in high demand. You can work directly with local businesses or join platforms like Amazon and Flipkart. A clean driving record, a smartphone, and regular vehicle maintenance are essential. This role suits punctual drivers who enjoy problem-solving but require managing fuel costs and demand fluctuations.
15. Airport Shuttle Business
Transport Business Ideas – Airport Shuttle Business
Airport shuttle services are a great business idea in tourist cities, helping people travel to and from airports. Use spacious vehicles, partner with hotels and travel agencies for bookings, and focus on being punctual and affordable to attract customers. Airport shuttle services can be one of the best bus business ideas.
Cycle rental shops are becoming more popular in cities and tourist places because people are now more aware of the environment and want to stay healthy. This business can do really well in areas where bicycle-sharing services are already available and where many tourists visit.
As more people prefer eco-friendly transport, bicycles are a good option instead of using cars. This attracts many customers. Starting this business doesn’t cost much, and it can give steady income, especially if it’s connected to mobile apps that make renting easy and allow regular payments instead of one-time charges.
Conclusion
The transportation industry is a lucrative and constantly evolving sector that offers numerous opportunities for entrepreneurs to start profitable businesses. Starting a transportation business requires careful planning, market research, and a significant investment of time and money. However, with the right approach, dedication, and hard work, individuals can establish successful transportation businesses that provide a valuable service to customers while generating a healthy profit.
Whether you are interested in starting a ride-sharing service or a driving school, the key to success in the transportation industry is to offer high-quality services, prioritize safety, and remain adaptable to changing industry trends and regulations. With these principles in mind, anyone can turn their transportation business idea into a thriving venture.
FAQs
How to start a transportation business?
To start transport business, you need to conduct market research, create a solid business plan, obtain necessary licenses and permits, secure funding, and invest in equipment and facilities. You should also prioritize safety and customer satisfaction and remain adaptable to changing industry trends and regulations to ensure the long-term success of your business.
Is transport business profitable in India?
Yes, the transportation business can be highly profitable, as it provides essential services to individuals, businesses, and governments. The industry is constantly evolving and presents many opportunities for entrepreneurs to establish successful businesses and generate significant profits.
What are the top transportation business ideas?
The top transportation business ideas are
Air Cargo Business
Boat Charters
Limousine Services
Driving School Services
Shipping Services
Bus Transport Services
Car Hire
Trucking
Taxi Cab Business
Towing Service
What are the other transport business ideas?
Some of the other transport business ideas are:
Interstate Commuting
Ferry Transport
Car Storage
Car Wash
Courier Services
Motorcycle Sales
Transport Blogging
Kids Taxi Service
Airport Shuttle Business
Medical Transportation
How much does it cost to start a transportation business?
The cost of starting a transportation business can vary significantly depending on the type of business and the location. However, entrepreneurs should be prepared to invest in equipment, facilities, licenses and permits, and marketing expenses.
Is it difficult to obtain licenses and permits for a transportation business?
The process of obtaining licenses and permits for a transportation business can be complex and time-consuming, as different jurisdictions may have different regulations and requirements. However, entrepreneurs can consult with industry experts or government agencies to ensure that they meet all the necessary standards.
What is profit margin in transport business in India?
The profit margin of a transport business in India can vary depending on various factors, such as the type of business, the size of the fleet, the market demand, and the operating costs. However, on average, the profit margin in the transport industry in India ranges from 5% to 25%. It is important to note that profitability can also depend on effective management, cost control, and efficient operations.
What are small transport business ideas?
Airport Shuttle Services
Last-Mile Delivery
Moving Services
Car Rental
Food Delivery
Bike Courier
School Transportation
How to start a transportation business with one van?
To start a transportation business with one van, plan your service (like delivery, moving, or shuttle), obtain the necessary licenses and insurance, and ensure your van is in good condition. Market your services locally, set competitive pricing, and keep track of finances. Start small and focus on a specific service to build your business and reputation.
What are commercial vehicle business ideas?
Commercial vehicle business ideas include delivery services, moving companies, food trucks, shuttle services, parcel couriers, towing, waste collection, and construction hauling. These businesses can serve various needs, from local deliveries to transporting materials and providing roadside assistance.
What is transport business income in India?
Income from a transport business in India varies based on the service type. Delivery services can earn INR 30,000 to INR 80,000 monthly, while moving services may bring in INR 50,000 to INR 1,00,000. Ride-hailing drivers can make INR 25,000 to INR 60,000, and logistics companies can earn INR 1,00,000 to INR 5,00,000 per month, depending on demand and scale.
How to start a passenger transportation business?
To start a passenger transportation business, choose your service type (e.g., taxi, shuttle, or bus), get necessary licenses and permits, buy or lease vehicles, hire trained drivers, and get insurance. Set routes or on-demand options, and promote your service through online and local channels. Ensure safety, punctuality, and customer service for growth.
What is the bus business profit in India?
In India, the private bus business profit can range from INR 30,000 to INR 1.5 lakh per month per bus, depending on route, usage, fuel cost, and ticket pricing. Profits are higher on busy routes and with well-managed operations.
Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations.
Ola needs no introduction. The first Indian cab aggregator company, Ola has made availing of cab services a smooth experience. Owned by ANI Technologies Pvt. Ltd. and formerly known as OlaCabs, Ola was launched in December 2010 by two IIT Bombay graduates. Being a pioneer among cab companies in India, Ola bridges the gap between cab owners and commuters, and it has done so really well!
Instead of buying and renting out its own cars, Ola partners with a number of taxi drivers and owners and adds a touch of modern technology to the whole setup. This allows people to book cabs at short notice through Ola’s app. Ola is India’s homegrown ride-hailing app with users in over 250 cities and employs 2.5 million+ driver-partners.
Driven by a hyperlocal approach, Ola is committed to its mission of building mobility for a billion people. Staying in line with its mission, Ola has also ventured into auto and bike booking services. Ola also started off a bicycle-sharing service called ‘Ola Pedal’ in 2017 to facilitate last-mile connectivity.
Read on to explore the remarkable story of Ola, its history, founders, owners, business model, revenue, growth, and more.
Ola has simplified the process of cab booking. From easy payment options to keeping the passengers entertained on the go with ‘Ola Play’, Ola takes care of everything to ensure a smooth ride. Ola now also operates self-drive cars. Be it self-drive or cab-hailing, Ola Cabs offer a wide range of cars to choose from depending on the number of travelers, budget, and convenience. For traveling within the city, one can hire shared taxis, autos, bikes, and even e-rickshaws through Ola.
One can opt for ‘Ola outstation’ to travel outside the city and ‘Ola rentals’ to rent a cab on an hourly basis. Ola has also launched ‘Ola Select’, a subscription-based membership program that offers premium benefits on rides. ‘Ola pedal’, Ola’s bicycle-sharing service, is already a big hit in the IIT Kanpur and the IIT Madras campuses with over 500 cycles.
In 2016, Ola launched ‘Ola Corporate’. When employees book their rides through Ola Corporate, the fare is deducted from the company’s Ola corporate prepaid account. Hence, companies can easily track the travel expenses of their employees while ensuring their safety.
Ola – Industry Details
India’s ride-hailing market was valued at $6.42 billion in 2023 and is expected to reach $7.6 billion by 2028, with strong growth ahead. The market is expected to grow at a CAGR of 6.3% between 2022-2024. The increase is supposed to happen due to the changing lifestyles of travelers and the growing disposable incomes of consumers, especially in Tier-I and Tier-II cities.
Ola was founded by Bhavish Aggarwal and Ankit Bhati in 2010.
Bhavish Aggarwal and Ankit Bhati – Ola Founders
Bhavish Aggarwal
Ola founder Bhavish Aggarwal graduated from IIT Bombay with a B.Tech in computer science in the year 2008. Ola Cabs owner Bhavish worked for Microsoft Research in Bangalore for two years right after college. He filed 2 patents and published 3 research publications in international journals during his stint at Microsoft. While chasing his entrepreneurial dream, he started an online company to sell short-duration tours and holidays before transforming it into Ola Cabs. Bhavish Aggarwal is the Co-founder and the CEO of Ola. Born on 28 August 1985, OLA owner Bhavish Aggarwal’s personal net worth was estimated to be around $350 Million, as per 2019 data. The wealth of Bhavish further increased to stand at Rs 7500 crore ($958.43 million) in September 2021,which also made him grab the 9th position among India’s wealthiest list under 40, which also features Sachin and Binny Bansal, Neha Narkhede, Nakul Aggarwal and Ritesh Arora, and led by Divyank Turakhia, with Rs 12,500 net worth.
The Ola chief Bhavish Aggarwal will reportedly be stepping down from the day-to-day operations of the core business of Ola and will be more involved with the new and upcoming businesses of the company. The Ola company’s day-to-day operations will be taken over by Arun GR, who joined in 2021 from Vedanta Resources and has previously headed as the Chief Financial Officer (CFO) of Ola Electric and Ola Financial Services, as confirmed by an internal organizational mail. Bhavish confirmed that he would not be retiring but will move on to overseeing Ola team building, product building, engineering functions, two-wheelers, car projects, quick commerce verticals, international expansion, and more.
Bhavish Aggarwal is well known for his tweets and remains quite active on Twitter and other social media platforms. He once even remarked jestingly that his tweets receive more replies than even Modiji’s tweets.
In a recent tweet that came from Elon Musk, where the Tesla chief said, “Tesla will not put a manufacturing plant in any location where we are not allowed first to sell & service cars”, Bhavish Aggarwal sarcastically replied with “Thanks, but no thanks!” the very next day on May 28, 2022.
Bhavish Aggarwal, who has been known to remark on Tesla and its likely launch in India, had said again, according to the July 4th, 2022, that the EV manufacturing giant is free to put up a shop in India and sell its cars, but they are not doing that, further adding that Tesla only “want to be treated differently from others, which I believe is not in the interests of India”.
Ankit Bhati is the Co-founder and the CTO of Ola and heads the technical aspects of Ola Cabs, ensuring a quick, convenient, and instinctive experience for the customers and partners. He joined IIT Bombay in 2004 for a B.Tech in Mechanical Engineering and an M.Tech in CAD and automation. By 2009, he had already worked on several freelance projects and with startups like Wilcom, QED42, etc. Ankit finally decided to give up his nomadic professional life for his own start-up. He became part of the Ola Cabs journey in November 2010. There were speculations that Ankit Bhati has left Ola but these were nothing but rumors and falsities, as said by Ola Co-founder Bhavish.
Ola Chief Financial Officer (CFO) Swayam Saurabh and Chief Operating Officer (COO) Gaurav Porwal left the company in the first week of October 2021. Arun Sirdeshmukh, who was the CEO of Ola Cars, resigned from the company within less than a year of his appointment.
The Ola work culture is dominated by the “Act fast, think later” philosophy, as mentioned by the top 10 senior employees of Ola who resigned from the firm.
Ola – Initial Team
OLA Initial Team
After the idea, the design and vision were done by the product manager, Usha Loutongbam, and Bhavish himself. As for the developers who converted these ideas into reality, the first version for Android was built by Ajinkya Potdar and for iOS by Khushal Bokadey. Both of them joined Ola for two months of internship and did an excellent job rolling out the release in real quick time.
The iOS app was then taken over by Atul Manwar and the Android version by Ankit Kumar. Neeti Birla developed thebackend APIs. The main focus of the new releases was to make the app feature-rich and improve the user experience without losing the essence of one-touch cab booking.
Ola – Startup Story | How was Ola Started?
Ola was launched on 3rd December 2010. There is an interesting story behind Ola’s start. Born in Ludhiana, Ola owner Bhavish Aggarwal was just like every other success-driven entrepreneur. Bhavish first started an online site named Olatrip.com that offered holiday packages and weekend trips.
While trying to keep his holiday and tour planning business afloat, Bhavish had to travel from Bangalore to Bandipur for which he rented out a car. The cab experience was horrendous! The driver stopped the car in the middle of the journey and demanded a re-negotiation of what Bhavish was paying. After being refused, the driver proceeded to abandon Bhavish en route to his destination.
This is when he realized how his plight was probably similar to a lot of customers across the country who were looking for quality cab services. Bhavish saw the potential of an extraordinary cab booking service, and he changed Olatrip.com’s business model to the one we know today as Ola Cabs.
Bhavish on-boarded his co-founder Ankit Bhati for taking Ola Cabs forward. Bhavish’s parents didn’t agree with his startup plans in the beginning. They were thoroughly displeased with his decision to become a ‘travel agent’. Nevertheless, his parents became supportive once OLA got its first round of angel investment from Snapdeal founder Kunal Bahl, Rehan Yar Khan, and Anupam Mittal.
Bhavish believes that anyone can have a good business idea but to implement it successfully, one must have a scalable model to power the business. According to him, the best or one of the safest models one can or should adopt is running a business while owning “zero” inventory.
If you believe that Ola is some sort of abbreviation or short form, you are wrong. The name is derived from the Spanish word ‘Hola’ that translates to ‘Hello’.
Ola – Business Model and Revenue Model
Ola has a simple business model. It acts as a facilitator to provide cab-booking services. Customers can book their cabs through the app. Ola does not own any of the cabs. Only those drivers with valid permits duly authorized and verified by transport authorities can sign up with Ola; they could be either self-employed or work for an operator who owns multiple cars.
Just like how we as customers use the Ola app, the drivers get access to a driver-specific mobile app on their smartphone once they register with Ola. This is done only after a thorough check of authenticity and conducting due diligence on the commercial papers and the personal papers of both the driver and the operator. The drivers have the flexibility to decide their own time to log in to the Ola application and accept requests for rides from customers. They may choose to remain logged out of the system at their convenience. Ola takes a commission of 15% on average on all the bookings done through the app.
Ola considers the following factors to create the final bill for the user:
Base Fare – Charged flat
Distance Fare – Charged kilometer-wise (different for different cities)
Ride Time Fare – Charged on the time taken to travel
Peak Pricing – Direct ratio depending on the demand for cabs
Service Tax – 5.6%
Swachh Bharat Tax – 0.2%
Toll Charges – Toll Collection in case you cross toll junctions in the journey
Ola has also got into 3 international markets namely Australia, the United Kingdom, and New Zealand. In Australia, it has set up operations in seven cities. It claims to have registered 40,000 drivers on its app in Australia. In India, Ola operates across 250+ cities.
Ola – Funding, Investors and Valuation
Ola’s funding history includes around $5 billion over 29 rounds.
The company’s valuation is $2 billion, as per the news report of November 2024.
Here is a breakup of the total funding raised by OLA to date:
Date
Stage
Amount
Investors/Shareholders
February 22, 2022
Series J
$20.11 million
Arrow Capital, Axis Growth Avenues and more
December 16, 2021
TLB Round
$500 million
–
December 8, 2021
Series J
$139 million
Edelweiss and others
July 9, 2021
Pre-IPO Round
$500 million
Temasek, Warburg Pincus’s Plum Wood and Bhavish Aggarwal
September 2019
Series J
$5.1 Million
ARK Ola Pre IPO Private Investment Trust
July 2019
Series J
$11.4 Million
Deshe Holdings, DIG Investment
March 2019
Corporate Round
$300 Million
Hyundai Motor Co.& Kia Motors Corp
February 2019
Series J
$92 Million
Sachin Bansal
February 2019
Series J
$14 Million
–
January 2019
Series J
$88 Million
Steadview Capital
January 2019
Corporate Round
$1.8 Million
Eternal Yield International
September 2018
Series I
$50 Million
China Eurasian Economic Cooperation Fund, Sailing Capital
August 2018
Secondary Market
$225 Million
Temasek Holdings
October 2017
Series G
$1.1 Billion
Tencents Holdings and SoftBank Group
August 2017
Private Equity
$36 Million
Tekne Capital
May 2017
Private Equity
$104 Million
RNT Capital Advisors and Falcon Edge Capital
April 2017
Series G
$260 Million
SoftBank Capital
February 2017
–
$330 Million
SoftBank
November 2015
Series F
$500 Million
Baillie Gifford, Falcon Edge Capital, Tiger Global, SoftBank Group and DST Global
April 2015
Series E
$403 Million
DST Global, GIC, Softbank and Falcon Edge Capital
October 2014
Series D
$210 Million
SoftBank Group,Tiger Global and Matrix Partners India
July 2014
Series C
$41 Million
Steadview Capital and Sequoia Capital
November 2013
Series B
$20 Million
Matrix Partners, Tiger Global Management
April 2012
Series A
$5 Million
Tiger Global Management
April 2011
Angel
$330K
Kunal Bahl, Anupam Mittal, Rehan yar Khan
Ola – Shareholding
Ola’s shareholding pattern as of March 2023, sourced from Tracxn:
Ola Shareholders
Percentage
Bhavish Aggarwal
8.7%
Ankit Bhati
3.3%
Nuvama Wealth
0.6%
SoftBank
20.4%
Tencent
8.1%
Plum Wood Investment
6.3%
MacRitchie Investments
3.6%
Z47
3.6%
Steadview
3.6%
Falcon Edge Capital
2.8%
DST Global
5.9%
Tiger Global Management
1.6%
GIC
1.3%
Helion Venture Partners
1.1%
Fort Canning Investments
1.1%
UCRNTFund
0.8%
Accel
1.3%
ABG Capital
0.8%
Tekne Capital Management
0.7%
Vanguard
0.8%
Delivery Hero
0.7%
Sailing Capital
0.5%
China-Eurasian Economic Fund
0.5%
Trident Trust
0.5%
Mirae Asset
0.5%
Segantii Capital Management
0.3%
DIG Investment
0.3%
Alpha Wave Global
0.4%
Axis Mutual Fund
0.2%
JSGCL
0.2%
Siddhant Partners
0.2%
Gemini
0.1%
Didi Chuxing
0.1%
Sarin Family India
< 0.1%
J3T Ventures
< 0.1%
ARK Impact Asset Management
< 0.1%
Arrow Capital
< 0.1%
Brand Capital
< 0.1%
The Alka Family Trust
0.1%
Qualcomm Ventures
< 0.1%
Adinath Family Trust
< 0.1%
Lyonsasset
< 0.1%
HBM Partners
< 0.1%
Price Descendant Trust
< 0.1%
THC Ventures
< 0.1%
Sequoia Capital
–
Blume Ventures
–
Bessemer Venture Partners
–
RNT Associates
–
CIM
–
CIIE
–
Angel
2.6%
ESOP Pool
5.4%
Other Investors
0.1%
Total
100.0%
Ola Shareholding
Ola – Growth and Revenue
Ola has covered an interesting journey from being nothing to becoming a company that provides a livelihood to thousands of people. Today, Ola has become a part of people’s everyday life in many cities.
Some key growth statistics of Ola would reflect that:
It completes more than 1 bn rides each year.
The service of Ola is spread over 250 cities.
Ola has empowered more than 1.5 mn entrepreneurs who are currently with Ola as driver-partners.
The company has 7000+ employees working with OLA.
Ola Cars
Ola has already launched its first electric scooters under Ola Electric and was set to step on a new journey involving used cars, which started in October 2021. According to the reports dated July 27, 2021, Ola looked to start its used car retailing business soon in Bengaluru. The ride-hailing giant aimed for a full-stack model where it will buy cars from the driver partners of the company and other people, and sell them to buyers after they are set right, said a close source aware of the future plans requesting anonymity. The new business was called “Ola Cars,” which was finally launched on October 7, 2021. Ola Cars helped customers purchase new and old vehicles. Furthermore, it also offered many other services like vehicle purchase, finance and insurance for vehicles, and its registration, and maintenance. This business of Ola was decided by the ride-hailing giant to be reoriented, as far as its June 25, 2022 statement goes.
Ola, which suffered heavily due to the coronavirus pandemic, being a ride-hailing app, has seen quite a progress after the lockdown and other strictures have been lifted. The company confirmed that the recovery it has witnessed from the second wave of Covid was 3X faster than what it has seen while shaking off the blues of the first wave.
India is moving again! Our @olacabs GMV crossed pre-covid levels last week. Recovery from second wave is 3 times faster. Clearly India is up and about! Some interesting trends as #IndiaIsMoving👇 pic.twitter.com/ERJfBR5s8f
Ola Co-founder and CEO, Bhavish Aggarwal, has also announced that Ola has seen 10 million users using the app, for the first time ever in FY21. This increase in usage is primarily because most people now are opting to avoid public transport and moving on with personal or shared ways of mobility. Furthermore, Ola Autos, which has seen a 150% rise, are also quite popular.
Bhavish further emphasized that the “Ola rides are safe.” He said that over 3 lakh Ola drivers are currently vaccinated and 100% of drivers are likely to get vaccinated soon.
A warm welcome to the Indian startup expanding its transportation services in foreign countries, now OLA in the UK after Australia and New Zealand markets. Ola is looking at bigger markets. Ola had been working towards this launch for the last year. CEO of Ola, Bhavish Aggarwal said, “It is not just yet another city launch for us. It is a transformative event for all of us at Ola.”
Bhavish Aggarwal, the Indian Entrepreneur, and co-founder of OLA Cabs have expressed immense happiness in bringing OLA to the United Kingdom and calls it a ‘momentous moment’ for everyone associated with OLA.
The United Kingdom has one of the world’s most evolved transportation markets. UK worked with black cabs and private hire vehicles (PHV) round-the-clock catering to people. Then, there came OLA, India based online ride-hailing company marching towards the UK, which will be serving as the only on-demand app to offer both Black cab and PHV facilities to people. With the known fact of the UK with its best-regulated taxi services, OLA is about to enter the market. Britain already is embedded with multi-billion dollar ride-sharing giant apps like UBER on its fast pacing on roads.
Ola obtained the license to operate in South Wales and Greater Manchester as per a press release as it’s the first step as ‘OLA in the UK’. OLA is engaging with policymakers and regulators to expand its network over a period of time. It is currently looking to expand its services throughout the UK. This seems a wise decision entering into the UK market, which faces mobility issues for the people relying on public transport services.
The company has come up with more facilities for commuters as per their convenience and choice. It ensures facilities with 24/7 safety, in-app emergency services, Disclosure and Barring Services (DBS) screened drivers, sharing live location, live tracking, reaching out to emergency contacts if needed, etc. OLA app is user-friendly and is instantaneous in catering to all needs of the people.
OLA in the UK is all set for its second innings globally after launching across seven cities in Australia with its maiden launch. It also has its sketch to launch in Bangladesh and Sri Lanka soon.
Despite the fact that Uber is one of the most sought ride-sharing apps in the UK and its territorial presence in 70+ countries, OLA is enthusiastic and is firm to take a stand globally with 1+ million drivers across various cities. With a huge customer base and the most accessed app in the Indian sub-continent, OLA has an edge over Uber in India. It must have its own strategies to make it successful in the transportation overseas market.
Time for us to wait and watch the Indian-based company establish its market on British grounds.
Ola Answers “Why does my driver cancel my Ola ride?”
Ola founder cum CEO Bhavish Aggarwal has finally replied to “Why does my driver cancel my Ola ride?” by introducing new features to its ride aggregating app on December 21, 2021.
The aforementioned question is the 2nd most popular question that Bhavish gets. Cab cancellation is something that all of the industry’s players face but that issue will soon be bettered with the new feature of the Ola app, which will enable the drivers to see an approx drop location and the payment mode before they accept an Ola ride. Bhavish tweeted, “Enabling drivers is key to reducing cancellations.”
The cab aggregating giant has always kept the drop location and the approx payment method hidden from the drivers, however, that somehow was not working out, as pointed out by Vineeta Singh, Sugar cosmetics CEO earlier in August 2021. However, the working of the latest feature has already been enthusiastically confirmed by Vineeta. Here goes her latest tweet:
My @Olacabs driver told me that they’ve started seeing approximate destinations before accepting a booking! This is fabulous @bhash! Building for India 💪🏻 https://t.co/83uyQwTwSE
In a recent report by ET, OLA chief Bhavish Aggarwal was reported to have met Uber officials in San Francisco, USA. This was the reason why the talks of the Ola-Uber merger circulated. However, Aggarwal dismissed such talks by saying, “Absolute rubbish. We’re very profitable and growing well.” Bhavish also took a dig at the US-based ride-sharing company by mentioning subtly that if any other company wants to exit from India, they can do so wilfully, as per his tweet. The Ola Founder-CEO further claimed that OLA is one of the most profitable ride-hailing companies in the world, and has a strong balance sheet. “We are the market leader in India and are much bigger than other players,” he added, along with mentioning any merger is completely out of the question. Ola is open to acquisitions though to further cement its position in India, as per reports dated July 30, 2022.
Ola Store Renamed as Ola Dash
Ola started a 15-minute delivery or quick delivery service in several parts of Bengaluru. Via this wing of Ola, the company decided to deliver grocery, pet care, and personal care products. Ola decided to start its ‘Ola Store’ initially in a few localities in the city and will have eventually planned to expand its services to other cities in the upcoming months. This new service was availed through the Ola app, which was available for selected customers, who were able to choose from around 2000 items. This made Ola stand as an emerging competitor of brands like Grofers, BigBasket, Swiggy, Dunzo, and more.
Ola Store eventually declared that it would be a 10-minute grocery delivery service and that it had already set up 15 dark stores in Mumbai and Bengaluru, as of November 30, 2021. Ola aimed to establish around 300 dark stores for the delivery of groceries and conveniences by January 2022. The firm also claimed to deliver around 1000 orders per day. The leading online cab aggregator announced having a fixed budget of around Rs 250 crore for their supermarket delivery business. This was the third time that Ola had attempted to foray into the segment. Ola Store had been renamed as Ola Dash, as per the reports dated January 26, 2022. The new name replaced the old one to infuse the element of speed and faster delivery. The Ola Dash network was estimated to expand its network of dark stores to comprise 500 dark stores, which will be spread across 20 cities and will make it the largest dark store network in India, as of January 28, 2022. However, the Ola Dash business failed to succeed in the long run and was suspended by Ola, as per the reports dated June 25, 2022. Ola Dash had last served 9 cities in total and was spread across 200 dark stores, which offered an assortment of 2500+ SKUs. ‘Store to Door’ was also on and was delivered in 10 minutes.
Ola – Financials
Ola has demonstrated significant financial developments over the past few years, with notable changes in revenue and profitability. Below is a detailed breakdown of Ola’s financial performance from FY24 to FY20.
Particulars
FY24
FY23
FY22
FY21
FY20
Revenue
INR 2,800 crore
INR 2,481.3 crore
INR 1,679.5 crore
INR 1,168.2 crore
INR 2,844.1 crore
Expenses
INR 2107 crore
INR 2,858.1 crore
INR 2,268.6 crore
INR 2,007.1 crore
INR 5,058.1 crore
Profit/Loss
INR -10 crore
INR -525.5 crore
INR -961.7 crore
INR -561.3 crore
INR -2,213.9 crore
Ola Financials
Ola Revenue:
Particulars
FY24
FY23
India Mobility
INR 1,761 crore
INR 1,985 crore
Financial Services
INR 227 crore
INR 63 crore
Others
INR 24 crore
INR 81 crore
In FY24, Ola’s India Mobility revenue declined to INR 1,761 crore from INR 1,985 crore in FY23, indicating a slowdown in ride-hailing services. However, Financial Services saw a significant jump from INR 63 crore in FY23 to INR 227 crore in FY24, reflecting strong growth in Ola’s fintech segment. Revenue from Other segments dropped from INR 81 crore to INR 24 crore, suggesting a strategic shift or reduced focus in these areas.
Ola has also introduced Ola money. The products offered under Ola Money are Ola Money credit card, Ola money postpaid, Ola money mobile wallet, and Ola money hospicash. Ola hospicash is a collaboration between Ola and Religare health insurance that allows the policyholders to claim Rs 5000 per day in case of hospitalization. It has further declared that it will invest up to Rs 786.1 crore in this Ola Financial Services subsidiary in December 2021.
Ola operates with transparency. The commission is given to drivers for every sale made. Ola is known to charge far less than many other traditional operators.
Ola Electric
Electric Scooters
Ola launched India’s first multimodal electric vehicle project on 26 May 2017. The project brought together industry experts and the Indian government to pioneer electric vehicles for the public and promote shared mobility in Nagpur. Established as a separate entity, Ola Electric Mobility Pvt. Ltd. also reached unicorn status with a $250 million investment from SoftBank in July 2019.
After exceeding expectations in the pre-booking round, Ola Electric scooters went live for purchase on their website and via the Ola app on September 15, 2021. The company reportedly sold Rs 1100 crores worth of electric scooters in just 2 days.
Electric Cars
Ola has unveiled its plans to launch its first electric car in the next 2-3 years, as per reports dated July 16, 2022. OLA CEO Bhavish Aggarwal teased and announced that his company is gearing up to build the sportiest car that has ever been built in India. Some concept design ideas have been ready already. The first Ola Electric car is to be launched from its new 4W factory that is to be built and would be another factory, separate from Ola’s Futurefactory for 2Ws.
Ola Parcel
In an attempt to challenge Swiggy Genie and Dunzo’s courier service, Ola announced the launched of Ola Parcel, an all-electric on-demand delivery service, on October 6, 2023. As a logistics company playing a role akin to Shadowfax, Shiprocket, etc., it will be onboarding itself to ONDC.
The founders Bhavish Aggarwal and Ankit Bhati had to face many challenges in the beginning. They worked long hours and sometimes Ankit, the co-founder of Ola, had to code for 48 hours straight. They have had to drive the customer to their desired locations at times because the drivers did not show up. However, this did not dampen their spirits. The duo worked day and night and people started liking their services.
The twist in their story happened when angel investors Rohit Bansal and Kunal Bahl invested Rs 2 crores in their business. This gave them an initial push and there was no looking back for Ola from there.
As much as Ola wanted to meet the needs of the customers by scaling up to different cities, each city faced its own infrastructural challenge. The app required the use of the 2G network. The team had to design an app that could accommodate network connectivity in smaller towns.
Ola incurs RBI penalty for Ola Financial Services
Ola Financial Services, an OLA subsidiary, has been imposed a penalty of Rs 1.68 crore by the RBI, which claimed that the mobility company failed to comply with the RBI norms in association with the latest changes in the prepaid payment instruments (PPIs) and know your customer (KYC) policies.
RBI mentioned that the entity didn’t adhere to “certain provisions of the Master Directions on PPIs dated August 27, 2021, and the Master Direction – Know Your Customer (KYC) Direction, 2016 dated February 25, 2016”. After discovering this, the central bank imposed the penalty, exercising the powers vested to the body under Section 30 of the Payment and Settlement Systems Act, 2007. To justify the huge penalty that it had brought down on Ola, RBI stated that it has earlier showcaused Ola as soon as it discovered that the firm was breaching the KYC norms, but Ola failed to provide a suitable response.
Ola Layoffs
Ola is reportedly looking to curb its expenses, for which, it is looking to lay off somewhere between 400-500 employees, as per reports dated July 6, 2022. This has risen up and would affect close to 1000 Ola employees, as per reports dated July 29, 2022. Sources and reports have claimed that Ola has already asked its key managers to prepare a list of employees that the company can let go. The ride-hailing giant has already ceased making investments in international markets like the UK, New Zealand, and Australia, and has also shut down its subsidiaries like Ola Dash and Ola Cars, all of which were cash-burn-heavy lines of business. However, with it, the cab aggregating company has also put a stop to the revenue channels that might have benefited it, thereby solely relying on its mobility services. Ola has laid off a huge number of employees to date. The last known layoffs were from its quick commerce wing, Ola Dash, from where the company reportedly laid off around 2100 employees in April 2022. Though this is still unconfirmed, it might be the largest layoffs that 2022 has seen so far.
Ola had already started terminating its employees and has also deferred their performance appraisal for this year, as far as the July 9, 2022 reports go. Ola has further announced that it would focus on its EV business, and also increase its hiring for the same.
Unfair Trade Practices and Violation of Consumer Rights
Cab aggregators Ola and Uber got legal notices from the Central Consumer Protection Authority that sent Notices to Ola and Uber for unfair trade practices and the violation of consumer rights, as per reports dated May 20, 2022. The central government of India had previously warned Ola and Uber of strict action if they don’t improve their systems and redress the rising complaints. Now, the CCPA has given a 15-day for them to do so.
Ola Resignations
Ola has witnessed numerous resignations lately, which became even more prominent after the increasing fire accidents and amid the preparations for Ola going public sometime soon in 2022. Ola had already seen the resignations of COO Gaurav Porwal, CTO Swayam Saurabh, General Counsel Sandeep Chowdhury, and HR head Rohit Munjal among others, early in 2021. The co-founders of Ola Electric Ankit Jain and Anand Shah had also put down their papers, and now it has been seen that Dinesh Radhakrishnan the CTO of Ola Electric, quit the company on May 8, 2022. Arun Sirdeshmukh, who was the CEO of Ola Cars, also left last week. Already rocked by resignations, Ola’s Head of Talent Acquisition, Shikhar Sood also left the company on July 7, 2022. Ola has seen too many top-level exits already and this brings us to the cause of the exits. As per the surveys of the top 10 senior employees of Ola, the culture of “act fast, think later” has been dominant.
Ola ShutDowns
Ola shutdowns are not something new. The cab aggregating giant has failed to pivot time and again, especially in the food delivery segment. The descaling of the food business is now announced for the third time on May 20, 2022, when Ola said that it would sell most of its cloud kitchen equipment at up to 30-50% discounts.
The first of Ola shutdown in the food delivery segments was witnessed when Ola pulled the plug on Ola Cafes in 2016 after a year since it started in 2015 to take on Uber Eats and foray into the food industry. Ola Stores was also shut down in the same year. It next acquired FoodPanda, which was completed in February 2022, but failed with the same so much so that Ola was left operating with only 50 cloud kitchens. The company later suspended Foodpanda’s operations completely in May 2019 and laid off around 1500 delivery executives and 40 mid-level staff. Ola eventually tried to pivot again with a handful of flagship food brands like the Khichdi Experiment, Paratha Experiment, The Biryani Experiment, and more. The company had also opted for a multichannel approach, set up 50 cloud kitchens, and had also included mom-and-pop stores in this initiative. Besides, Ola also wanted to acquire Freshmenu to scale its food business, but the deal failed to flesh out.
Ola has decided to pull the plug on its used cars and quick commerce business – Ola Cars and Ola Dash, as per reports dated June 25, 2022. These businesses of Ola are shut down with the sole aim of strengthening its EV and mobility businesses, which the company is planning to only focus on for the time being. Though Ola Cars still has hopes of being reoriented, which is expected to help strengthen the go-to-market strategy of Ola Electric, Ola Dash is to be closed down completely.
Here’s briefly looking at the failed ventures of Ola:
Name
Industry
Founded
Shutdown
Ola Dash
Quick Commerce
2015
2022
Ola Foods
Food Delivery
2020
2022
Foodpanda
Food Delivery
2019
2020
Ola Cafe
Food Delivery
2015
2016
Ola – Partnerships
Apart from the drivers that Ola partners with as clients, the most notable partnership that the cab aggregating giant has witnessed is with Siemens. Ola announced a press release stating ‘Ola adopts Siemens’ Digital Enterprise to build India’s most advanced manufacturing facility’ on January 20, 2021. Ola has partnered with Siemens to build its upcoming electric vehicle manufacturing facility. This announcement comes when OLA has an MoU with the government of Tamil Nadu to invest around INR 2,400 Cr towards building this facility.
It is expected that the factory will generate around 10,000 jobs, with an initial capacity of 2 million units a year and making it the largest scooter manufacturing facility in the world. This will serve as Ola’s global manufacturing hub catering to customers in India and across Europe, the UK, Latin America, and ANZ (Australia and New Zealand)
This factory is going to be amazing and technologically advanced with 5,000 robots stationed across various functions and will be built on Industry 4.0 principles. Ola will have access to Siemens’ integrated Digital Twin design and manufacturing solutions to digitalize and validate products and production ahead of actual operations. It will have Ola’s proprietary AI Engine and tech stack deeply integrated into each aspect of the manufacturing process. Thereby, providing unprecedented control, automation, and quality to the operations.
Bhavish Aggarwal, Chairman & Group CEO, Ola, said, ‘‘Ola is delighted to partner with Siemens to build the most advanced manufacturing facility in the country. This will be our global hub and will set a benchmark in quality, scale and efficiency, demonstrating India’s capability to build world class cutting edge products. We look forward to bringing this factory online in the coming months and putting our products in the hands of customers.”
Ola’s scooter blends excellent design, sensational performance, and incredible technology into an amazing product. It has already won several prestigious designs and innovation awards including the IHS Markit Innovation award at CES and the German Design Award.
Sunil Mathur, MD & CEO, Siemens India, said, “Siemens is a global leader in Industry 4.0 and we are proud to contribute to Ola’s vision of creating a factory of the future using our automation and digitalization expertise to ensuring the highest levels of productivity and quality while enabling an agile and flexible production process.”
Ola – Acquisitions and Merger
Ola has acquired 8 organizations in total. The last acquisition of Ola was that of Avail Finance, which is a financial services startup for the blue-collar workforce led by the Ola chief Bhavish Aggarwal’s brother, Ankush Aggarwal. The acquisition of Avail Finance was announced on March 24, 2022, and was finally completed on April 11, 2022, via a share swap deal worth $50 million. The leading cab aggregating giant held a 9% stake in Avail due to its investment in the startup in 2019 before it acquired the company.
GeoSpoc was the previous company that Ola acquired on October 5, 2021. It was the company’s first acquisition in a period of over 2 years after it acquired Pikup.ai on August 13, 2019. ANI Technologies, the parent of the ride-hailing major Ola and Ola Electric, completed its acquisition of Foodpanda from Delivery Hero, the Germany-based parent of Foodpanda.
The acquisition of Foodpanda was first announced by Ola in December 2017 for around $200 mn to reinforce its food delivery service. Fast forward to February 5, 2022, the food delivery giant held an extraordinary general meeting where the shareholders of Ola decided to issue 3,793 Series J2 CCPS to Delivery Hero, for Rs 8.5 crore. Mentioning that to acquire 100% of the shares in Foodpanda, the company stated that it will be finally issuing 3,793 Series J2 CCPS to Delivery Hero instead of cash consideration, which will allow the company to acquire 77,10,564 equity shares, which were held by Delivery Hero in Foodpanda, as per the news dated February 24, 2022.
Founded by Ralf Wenzel, Benjamin Bauer and Felix Plog in 2012 in Germany, Foodpanda was a successful business at that time in India, however, due to piling expenses, miscommunication, technical flaws, lack of ownership, lack of a foolproof business, and revenue model, the startup struggled much in India before it finally got acquired by Ola. Foodpanda reportedly pulled in 30,000-35,000 orders per day when it was at its peak of India operations. Furthermore, it launched “The Crave Party” in the last week of August 2018, which rained a range of discounts for the customers, and multiplied the order volumes of the app by 10X in the same year.
Currently, the Foodpanda app lies suspended after the Ola acquisition of FoodPanda.
Here’s the list of the prominent Ola acquisitions to check out:
Ola had acquired the Pune-based geospatial service provider, GeoSpoc in order to improve their location and geospatial technologies with an undisclosed amount. Talking about the acquisition, CEO and Co-Founder, Bhavish Aggarwal mentioned the need for “better, newer maps and geospatial services” for the “new mobility” and to build the future of location services.
The geospatial sector in India has witnessed quite a growth lately, the market of which, in India, is currently valued at Rs 15,000 crores, and is expected to hit Rs 1 Lakh crores by 2029-2030. The company completes its acquisition of GeoSpoc in full for Rs 26 crore, as per the reports dated December 8, 2021.
Ola had already executed an employee stock ownership plan (ESOP), which was worth around $10.5 million (Rs 78.6 crores) for its three former employees and one current executive. Now, the company has further decided to provide ESOP encashment facilities for the former chief executive officer of Ola Foods, Pranay Jivrajka; former chief operating officer of Ola, Pallav Singh; Nimish Joshi, former Vice President, and its current chief product officer, Suvonil Chatterjee.
Among all of them, Jivrajka has emerged as the biggest beneficiary of the ESOP encashment program of Ola with Rs 38.17 crore, who is followed by Pallav Singh, Suvonil Chatterjee, and Nimish Joshi, who possess Rs 24.8 crore, Rs 8.5 crore, and Rs 7.08 crore respectively. Ola declared this development soon after it announced the expansion of its ESOP pool to Rs 3,000 crore. Furthermore, the company also noted that it will have some fresh stocks, worth Rs 400 crore allocated for the employees in the run-up to its IPO. Ola currently boasts of having one of the largest ESOP pools among the late-stage startups of India, which also includes companies like Paytm, OYO, and BYJU’S.
Ola – Competitors
Ola directly competes with Uber; the world’s most well-financed startup having raised more than $24 billion in equity and debt on a recent valuation of $82 billion. Other players in India include:
Meru Cabs Company Pvt. Ltd., which owns Meru Cabs
Carzonrent (India) Pvt. Ltd., which owns Carzonrent
In the bike taxi segment, Rapido is slowly capturing Ola’s market share.
InDriver, the international ride-hailing app is the hot favorite today in India, which was founded in Russia and is headquartered in Mountain View, California, US.
Ola – Future Plans
Ola’s future plans focus on expanding its ride-hailing business, investing in electric mobility, and developing battery cell manufacturing. Its ride-hailing division in India is profitable and market-leading, with CEO Bhavish Aggarwal stating that the cab business has recovered to pre-pandemic levels. In electric mobility, Ola Electric is investing in R&D and its battery cell manufacturing unit to make its scooters more affordable. The company aims to start commercial production of battery cells by early 2025. A significant portion of its IPO proceeds will be used for battery cell manufacturing, reinforcing its focus on sustainable EV solutions.
FAQs
Is Ola a Chinese Company?
Ola is an Indian Company but is funded by Chinese investors like Tencent Holdings, Steadview Capital, Sailing Capital, Eternal Yield International Ltd, and China-Eurasian Economic Co-operation Fund with an estimated investment of $500 million.
Who are the Ola shareholders?
Ola’s major shareholders/investors include SoftBank Group (Japanese), Tiger Global (US-based), Tencent (Chinese Venture Capital), Matrix Partners (US-based), and DST Global (Russia).
Ola was founded in 2010 by Bhavish Aggarwal and Ankit Bhati as an online cab service. It started as Olatrips.com, offering intercity rides, but soon shifted to ride-hailing for city travel. The company quickly expanded, becoming a market leader in India’s mobility sector.
Who is the founder of Ola Cabs?
Ola was founded by Bhavish Aggarwal and Ankit Bhati in 2010.
What is the full form of OLA?
There is no full form as such. The name is derived from the Spanish word ‘Hola’ which translates to ‘hello’.
How to become a partner of Ola?
You can easily be a partner of Ola by simply going to www.partners.olacabs.com. There you will find 3 options to become an Ola Partner. You can be an Ola Partner:
If you already have a car and you want to attach that car with Ola
If you know driving, but lack a car
If you have a fleet and you want to attach the same with Ola
When was OLA Electric founded?
Ola Electric was founded in 2017, as a new subsidiary of the Ola company that caters to the new-age, sensible users of electric vehicles.
What is Ola Dash?
Ola Dash was an Ola service that the cab aggregating giant founded in 2015, to provide quick commerce service. However, the service was suspended as per the Ola statements dated June 25, 2022.
Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by Lyft.
The urging need for a better and safer travel system is fulfilled by Lyft. Lyft has become a household name from the time it was launched in 2012. Lyft is highly considered by the citizens of the United States and Canada for booking their rides.
Lyft was launched in 2012 by Logan Green and John Zimmer as the second-largest ride-sharing company in the United States. From the time of its launch up till now, it is known to provide multiple facilities such as providing a ride, arranging the driver, delivering food, etc.
Lyft has its roots expanded and well-developed in its field. Let us have a look at other important details such as founders, back story, mission and vision, business models, etc.
Let’s go through the Lyft success story and know about Lyft, its founders, business model, revenue model, funding, startup story, competitors and more.
Mobile Apps, Ride Sharing, Software, Transportation
Area Served
United States, Canada
Revenue
$3.2 billion (2021)
Total Funding
$4.9 billion (2022)
Website
www.lyft.com
Lyft – About
Lyft is an American-based mobility provider providing service that is considered the second-largest trusted ridesharing service in the United States. Lyft provides an application of its own that works in favour of people to help them with their travel plans. Apart from managing their travel, it also offers other services such as food delivery, ride-sharing, and renting bicycles types of services.
Lyft uses 58+ technology products and services in its application and website. This enables the easy and updated use of its technology. Lyft is not a cab hiring service, instead, it connects the user with the facility provider to earn profit.
Lyft – Industry
The mobile application industry is the fastest growing industry due to the increased number of users. Along with mobile applications, the usage of personalized software makes it much more compatible to be used by any startup. In recent years, the software industry along with the mobile application industry has been combined to give out better results and eliminate the restricted use of models due to medium.
The ridesharing industry is the new talk of the town as the assumption to be believed is that the global ride-sharing market is projected to grow with a 16.6% CAGR with an estimated USD of 85.8 billion in 2021 to be around 185.1 billion by 2026 as per the report published by marketsandmarkets.com.
The transportation industry deals with the economy and the movements of people from one place to another. Lyft works together in this industry to provide relevant services with a profitable business.
Lyft – Founders and Team
Logan Green
Logan Green, CEO and Co-founder of Lyft
Logan Green, highly recognized as the CEO and co-founder of Lyft, was born in Los Angeles in 1983. Green is recorded to complete his schooling at New Roads High School, California. For his higher education, Green attended the University of California, Santa Barbara (UCSB). He completed his bachelor’s in 2006 and is recorded to hold a degree of Bachelor of Arts in Business Economics.
During his education, Green had achieved and served a few great responsibilities. Green had created the Green Initiative Fund while still being a student. He also served as a board member for Isla Vista Recreation and Park District in his early life.
Before the launch of Lyft, there was another carpooling service founded by Green and his friend John Zimmer named Zimride in the year 2007. After the success of Zimride, Green was not yet satisfied with his work and went forward to embrace the risk with the launch of Lyft in 2012.
John Zimmer
John Zimmer, Co-founder and President of Lyft
John Zimmer is a co-founder and president of Lyft born in 1984. He completed his education at Cornell University School of Hotel Administration. He was known to be a member of Sigma Pi Fraternity during his college years.
After completing his education, Zimmer went on to work as an analyst for real estate finance at Lehman Brothers (New York City).
While working for the Lehman Brothers, Zimmer along with his dearest friend Logan Green went on to launch a ridesharing platform named Zimride. After some time, Zimmer left his job at Lehman Brothers and again went on to give rise to another ridesharing platform named Lyft with the equal contribution from Logan Green.
Lyft – Startup Story
Initially, Lyft was started just as a part of Zimride. The story behind it becoming the sole project of John Zimmer and Logan Green is quite interesting to look at. Lyft is not any on-road ridesharing enabling platform, instead, it is the second most used ridesharing service in the United States.
To know the exact reason behind Lyft, one must be aware of the story of Zimride. As for the start, Lyft was a part of Zimride only before selling it to a private company.
The founders of Lyft met each other through a common friend and got to know each other on Facebook.
Logan Green used to travel to Los Angeles to meet his girlfriend. Green used to make sharing rides for travelling the distance. However, the key point in their travelling was mostly his anxiety about unknown drivers and passengers.
On the other hand, John Zimmer used to own a car but didn’t have any possible rider to share his ride with. He noticed that 80% of seats are empty on American Highways.
Both the friends put up their thoughts together and created the carpooling service named Zimride in 2007. The logic behind naming Zimride was taken from Zimbabwe, where they encountered people sharing rides as their basic transportation.
Zimride was created by keeping college students in mind. It was created in a way to provide easy travel access to the campus carpooling. They also provided a good way for students to earn money through Zimride. Till the year 2012, Zimride had thousands of users with 150+ universities participating in the business. Even after the great achievement, the co-founders were left with some dissatisfaction in their minds.
To improve the business and provide more easy ways to the users, Logan Green and John Zimmer gave rise to Lyft.
“Lyft came out of a hackathon project where we were trying to figure out what does Zimride look like on mobile.” – Logan Green.
With the concept in mind, they built and launched the Lyft application in the year 2012. Soon after the launch of Lyft, it started raising enough funds for its development. Lyft also proved as a healthy competitor to already existing ride-sharing company Uber.
With the constant expansion of Lyft, the co-founders of Lyft concluded renaming Zimride “Lyft” in 2013. Along with that, they sold the Zimride services to Enterprise Holdings.
From there on, Lyft has successfully tried to accomplish its goal and is still on its way to success even after some rough waves.
Lyft – Mission and Vision
The mission stated by Lyft is to “Improve people’s lives with the world’s best transportation”.
The vision of Lyft is stated as “ride by ride, we are changing the way our world works. We imagine a world where cities feel small again. Where transportation and tech bring people together, instead of apart. We see the future as community-driven and it starts with you.”
Lyft – Name, Tagline, and Logo
Name
Lyft name of the vehicle is the general word “lift” and shares the same meaning. The idea behind naming Lyft ” originated after Logan Green observed people sharing minivan taxis in Zimbabwe. From there, the idea to name their startup Lyft ” originated, However, it was made in use after a few years when Zimride was renamed Lyft.
Tagline
The tagline of Lyft is Your Friend with a car.
The Initial thought of the Lyft founders was to enable safer and secure travelling options for daily commuters. The tagline itself suggests that a customer can trust their rider like a friend and can travel comfortably without worry.
Logo
Lyft Logo
In the first logo of Lyft, The Pink Moustache with the name Lyft was made. However, with time, only the name is left as its logo.
Yet, Lyft vehicles were found to have a big pink moustache attached in the front. The prime reason behind this was the old friend of the founder of Lyft named Ethan Eyler. Ethan Eyler was known to run a company at that time selling big pink moustaches that can be attached to vehicles in the front.
As for the logo of Lyft, all the letters of Lyft are written in small letters with Pink colours on a white background. The reason behind selecting the colour pink was to normalize the Lyft brand as more friendly for females riders. Lyft was originally planned as a fun-filled and friendly ride-sharing option for its users and hence selecting such a vibrant colour gives out a similar vibe to daily commuters.
Lyft is an on-demand ride-hailing platform. It enables the online connection of a ride needing the user to the rider available at the nearby location. The typical business model of Lyft works on the principle of Peer to Peer model.
It combines all the necessary details such as base charge, the distance covered, the per-minute charges, the per-mile cost, time of day, ride type, the chosen route, number of available drivers, current demand for rides, and any extra charges or taxes. With all this calculation, the only remaining part is the time required to reach the destination. After going through all these elements, the final fare is decided.
There are four basic steps in the Lyft Business Model. However, Lyft itself is compromised of two different parts, riders, and drivers.
Riders
The four basic steps for Riders are:
Requesting a Ride
In this step, a rider needs to download the application of Lyft and complete their profile. Once done with the basic process, they can start with the available options and decide according to their needs.
Coordination
This step is mainly done by Lyft. Lyft enables the nearby available Lyft ride as a suggested option as per the rider. Once matched, basic information is shared on both sides such as the live location of the driver with the vehicle information, and the driver’s name is shared with the rider. And the personal needed information about the rider is shared with the driver for their easy access to each other.
Ride
Once the request is accepted by the driver and the ride is accessed by the rider. The actual map of the destination is shared with the driver and real-time tracking is enabled for the safety of the rider.
Final Check With Payment and Ratings
Once the ride is completed, the final amount is displayed to both parties with the option of rating each other. A rider can rate the driver with needy comments and the same facility is given to the driver to rate their rides.
Drivers
Lyft has a slight change to the business models for those wishing to make money through driving but does not have their vehicle. For such people, Lyft has a dedicated Express Drive Program through which one can easily rent a car to drive. Before that, they need to get eligible to bypass the profile screening test. Once all this procedure is done, the driver can then start with their allocated process of four steps:
To Register As A Driver
For this process, Lyft has assigned them another application known as Lyft Driver App. After downloading the application, the driver needs to set up their profile with honest details. Once completed, they can then enable themselves on a Drive Mode to receive notifications from neighbouring locations.
Receiving A Request
After the drive mode is on, the Lyft application allows the nearby passenger’s details to be sent to the driver for the ride. A driver has the option of either accepting or neglecting the ride request based on their judgments.
Completing A Ride
When a ride is accepted by the driver, basic details are shared on both the sides by Lyft Application. Along with that real-time tracking is enabled for higher safety. Once the ride is completed, the Lyft application automatically calculates the payment based on multiple factors and displays them on the screen.
Payment and Ratings
A rider needs to pay up a shown amount to the driver. Once the whole process is complete, a driver can rate their riders on a scale of 1 to 5.
Lyft – Revenue Model
Lyft gets its revenue mostly from the bookings made through it. Bookings stand for the completed rides done through Lyft Application. Lyft takes a commission from each of those rides. 80% of each completed ride goes to its driver whereas 20% is taken by Lyft.
In the year 2020, Lyft earned its revenue of approximately $2.3 billion.
Lyft generates its revenue from multiple sources.
Commission From Bookings
This is the majorly constituting source of revenue. As explained above, Lyft cutes 20% of the total payment made by riders after completion of their rides as its commission.
Supply And Demand-Based Fare
Lyft has its prices hiked at certain periods of the day. This is done at the time of traffic, high demand for rides, and similar situations. In this model, Lyft hikes its price temporarily and earns extra profit through each ride.
Availing Subscription Plan
The subscription program of Lyft is called Lyft Pink for riders. Lyft allows its users with the subscription plan of paying $19.99 per month or $199 per year to avail of various benefits such as 15% off on rides, a few additional discounts, and many others. This model also earns Lyft a good source of revenue.
Multimodal Business Plan
Lyft is not confined to a single ride-sharing platform, it has a few different similar services on hand too. Lyft is an on-demand ride-sharing platform giving out four different options for rides. They have scooters and bikes, public transportation, ridesharing service, and a self-driving facility.
Amongst them all, users can easily select their preferred options such as for shorter distances, one can prefer bike and scooter or for some specific reason, one can go with the option of the self-driving vehicle. All this has also contributed to the revenue collected by Lyft.
DOOH
Digital-Out-Of-Door stands for the method of advertisement in a ride. This method is used by Lyft itself also to advertise for the self. Apart from that, Lyft also gives out advertisements to others in exchange for certain fees.
Lyft – Employees
Lyft has its headquarters in San Francisco. Apart from that, it has its offices set up in various locations. The total count of locations is 31 different located offices covering the parts of 6 countries.
As of 2021, Lyft was calculated to be having 4369 employees working for it.
Lyft provides its employees with several facilities as per their job positions. Some of the facilities given by Lyft are Insurance of different types, retirement plans, maternity and paternity leaves, paid holidays, etc.
Some of the key people of Lyft are:
Logan Green- CEO of Lyft
John Zimmer- President Of Lyft
Anthony Fox- Chief Policy Officer, Senior Advisor to President & CEO
Brian Roberts- Chief Financial Officer
Kristin Sverchek- President of Business Affairs
Eisar Lipkovitz- Executive Vice President, Rideshare and Engineering
Lyft has a total of 79 investors and 13 lead investors investing on its platform.
Date
Transaction Name
Money Raised
Lead Investors
Mar 1, 2019
Secondary Market
–
–
Jan 25, 2019
Secondary Market
–
–
Sep 20, 2018
Secondary Market
–
–
Jun 28, 2018
Series I
$600M
Fidelity Management and Research Company
May 4, 2018
Secondary Market
–
–
Mar 16, 2018
Corporate Round
$200M
Magna International
Dec 6, 2017
Series H
$1.1M
–
Dec 5, 2017
Series H
$500M
CapitalG, Rakuten
Oct 19, 2017
Series H
$1B
CapitalG
Sep 15, 2017
Secondary Market
–
–
From the time of its start till now, Lyft has participated in 27 rounds of funding and has received the amount of $4.9 billion. Their latest funding was raised on March 01, 2019.
Lyft – Acquisitions
Lyft has a total of 11 acquisitions with an investment of around $342M.
Kamcord
Leo
Cherry
YesGraph
Halo Cars
Flexdrive
Blue Vision Labs
Motivate
Hitch
DataScore
Lyft – Growth
Lyft was launched three years after Uber. Uber is considered the largest and most trusted ridesharing service in the United States. Earlier, Lyft was started as a ride-sharing company for long distances. But with time, they gave out different options for short distances too.
With this initiation, Lyft came out to be the biggest competitor to Uber. Uber was a well-settled company at that time, yet the growth seen by Lyft in its expansion was commendable. Lyft expanded roughly from 60 cities to 300 cities by the time of 2017.
Another thing that worked in the favour of Lyft was the anti-Uber Campaign in 2017. The campaign allowed Lyft to make its name by eating up Uber’s popularity. The market share earned by Lyft increased from 22% to 33% in the year 2018.
Lyft – Advertisement and Social Media Campaigns
Lyft uses multiple methods to advertise its brand. Lyft is known to take help from social media influencers for its typical advertisement of itself.
Some of the celebrity endorsers of Lyft are LeBron James and Nigel Sylvester. LeBron James is the celebrity influencer used by Lyft for its advertising strategy, whereas Nigel Sylvester is a YouTube content creator, helping them to reach a wider range of users.
Apart from this, Lyft also takes the help from passionate influencers having the ability to reach heights and advertise their platform.
Another common method used by Lyft for its advertisement is in the form of Digital-Out-Of-Home (DOOH). This means advertising a platform within a ride. Lyft also advertises itself by using this method. Lyft also uses Google Ads for socializing its platform.
Each brand keeps on introducing different campaigns to gain the attention of users. The two most successful campaigns launched by Lyft are:
Riding is the new driving.
How to Human.
Riding is the new driving– It was launched in 2016 with a one-minute message showing the traffic drive with a heart vibe.
How to Human campaign was launched in 2019 to normalize the world after a long fight with the COVID pandemic. Even though at that time, the pandemic was not over, few things were coming back to normal. During this campaign, Tinder also teamed up with Lyft for this campaign to avail free rides for the customers as an effort of easing the concept of socializing and dating.
Lyft – Online and Social Media Presence
Lyft has an active Social Media Presence across different platforms. Lyft uses social media platforms as a way of advertising itself. Along with that, it also uses different platforms for announcing new steps.
Social media platform
Followers
Twitter
289.3k
Instagram
180k
Facebook
658k
Lyft – Competitors
Lyft has about 30+ competitors in the market. The top three amongst them are:
Uber Technologies Inc.
Gett.
DiDi.
Uber
Uber is the biggest competitor of Lyft. It was launched in 2009. Uber Technologies Inc. is an American-based mobility service providing company. They serve 72 countries with approximately 10,500 countries. Services given by Uber include, ride-hailing services, food delivery services under the name of Uber eats, package and courier delivery, renting a vehicle, etc. Uber is the leading ride-sharing platform in the United States acquiring about 71% market share of rides sharing as noted in Jan 2022.
Gett
Gett, previously known as GetTaxi, is an Israeli-based transportation provider founded in 2010. Gett mainly focuses on Corporate Ground Transportation Management (CGTM). Areas served by Gett are Israel, Russia, the United States, the United Kingdom, and Europe. Services provided by Gett are corporate fleet, taxi, ride-hailing, and providing limos to their customers as per their request.
DiDi
Didi Chuxing Technology Co. is a Chinese vehicle for hire company launched in 2012. The company deals with application-based transportation services. DiDi provides services to 400+ cities. Common services given by DiDi are Taxi, Express, Premier, Bus, Designated Driving, Enterprise Solutions, Bike Sharing, Car Rental, food delivery, etc.
Lyft – Future Plans
“Now more than ever, we need to work together to create cleaner, healthier, and more equitable communities,” said John Zimmer, co-founder, and president, of Lyft.
Lyft plans to reach 100% electric vehicles on its platform by the time of 2030. This move will help in decreasing the harmful emissions to the environment. Lyft plans to use 100% electric vehicles in 10 years. All the vehicles used on the Lyft platform will be either eligible as electric vehicles or will be reliable to zero-emission technology.
To fulfil this dream, from the year 2017, Lyft was known to work towards the development of electric cars. However, Lyft sold its self-driving unit to Toyota’s unit Woven Planet in 2021.
This step might seem like a hurdle for the future vision of Lyft. But on the better aspects, both the parties are bound in a contract to share data. This allows easy sharing of work between both the companies.
As no developing company would like to work on two aspects together. It is better for Lyft to work towards its main business of ride-sharing and for Woven Planet to work solely on the development part rather than taking interest in the ride-sharing business. With this assumption, we can look forward to having a better and clearer environment through the efforts of Lyft.
Lyft plans to fulfil its dream of establishing 100% autonomous vehicles but with a slight change in the actual plan by mainly focusing on its B2B branch.
Lyft – FAQs
Who is the founder of Lyft?
Logan Green and John Zimmer are the founders of Lyft.
What is Lyft?
Lyft is a ride-hailing service founded by Logan Green and John Zimmer.
Who is the CEO of Lyft?
Logan Green is the current CEO of Lyft.
When was Lyft founded?
Lyft was founded in 2012 by Logan Green and John Zimmer.
There is a huge increase in population in India. The increase in population has led to an increase in the traffic in the metro cities in the country. The top cities in the country were ranked in the top positions for the highest traffic worldwide.
To bring a solution to this huge traffic and the delay caused because of that various startups have been working towards building Air Taxis. Let’s look at some of the Air Taxi startups in India.
India’s first Air Taxi service was first launched at the Chandigarh airport. It was inaugurated on 14 January 2021 by the Chief Minister of Haryana Manohar Lal Khattar. The Air Taxi service is launched under the UDAN scheme of the Central Government.
Airports Authority of India had tweeted on their official Twitter handle saying that India’s first Air Taxi flight was flagged off by the Chief Minister of Haryana as part of their Inauguration. They added that the flight will operate under the Regional Connectivity Scheme RCS-UDAN.
The Chief Minister of Haryana said that this is the first time in the country that a small aircraft is used for services in the form of an Air Taxi.
The Air Taxi can carry one pilot and three passengers. The Air Taxi has the lightest plane which has a twin-engine in the world. Its weight is 760 kg. The aircraft uses a standard 92 octane petroleum which is different from the normal flights which use Aviation Turbine Fuel (ATF).
The aircraft can travel at a range of 742 Nautical Miles. The services can be availed at INR 1,755 per seat. The main objective of the aircraft is in line with the government’s aim to connect the Tier 1 and Tier 2 cities with the metro cities of the Country.
A subsidy is provided by the government to the airlines per seat to provide better connectivity to the smaller towns. As per the reports the airline will cover around 26 routes under Regional Connectivity Scheme (RCS) UDAN.
Ubifly technology is a Chennai-based startup that is working on developing e-planes in the country. Ubifly Technologies Private Limited was founded in the year 2016. The company is commonly known as the e-plane company.
It was founded by Satyanarayanan Chakravarthy and Panjal Mehta. The Startup is concentrated on developing electric planes and unmanned aerial vehicles (UAV). The main aim of the startup is to bring a new definition for intracity travels and their products focus on short-distance intracity travels.
Pranjal Mehta(Left) with Prof.Satyanarayanan
The company is trying to build a hybrid mix of drones and electric airplane technology. The vehicle will take off and land similar to the drone but will move forward in the air like an airplane.
The Startup has already designed three UAV models, Ek Hanz which will be used for delivering goods and services, Scout which is for security and surveillance, Vayu which will be a hybrid autopilot e-plane.
The company will develop a two-seater air taxi which will be called as e200.
IIT Kanpur had signed a Memorandum of Understanding (MOU) with VTOL Aviation India Pvt. Ltd. The deal is worth INR 15 crore. VTOL Aviation India Pvt. Ltd is an Indian private aviation company. The MOU is for building prototypes that will be operational and will be used as flying taxis.
The project is expected to be completed by 2023 where over 100 researchers from IIT Kanpur are working towards developing a fully functional prototype.
According to the deal, the researchers will first conduct a test to identify the feasibility of the project. This is to understand the key technological areas of the project and the rest of the project is expected to be completed by 5 years.
Ajay Ghosh who is the head of the Aerospace Engineering and the Flight Lab at IIT Kanpur has said that there will be more than 100 students working on the project in the coming years.
The researchers will work on developing the aircraft based on VTOL technology that is vertical takeoff and landing. They are working towards building an electric aircraft to promote clean energy and sustainability.
Uber Air Taxi
Uber is working on developing an aircraft based on e-VTOL that is electric vertical take-off and landing. These are considered to be cleaner, cheaper, and safer than helicopters. Uber Elevate is working towards developing aerial ridesharing with Uber Air and is expected to take off in 2023.
Uber Air taxi Prototype
In 2020 it was announced that Joby Aviation will acquire Uber Elevate. Both the parent companies have agreed to integrate their services into each other’s app.
Uber had announced that Dallas and Los Angeles as the two cities to begin their Air Taxi and Melbourne, Australia as its first international city to move forward with its expansion.
Uber has also said that it has shortlisted 5 countries other than the US to expand its Air Taxi services which include Japan, India, Australia, Brazil, and France.
Vinata Aeromobility Model
Vinata Aeromobility
Vinata Aeromobility is developing a Full Autonomous Hybrid Flying car through Advance Aeromobility by using combined technology of quadcopter VTOL hybrid power urban air mobility systems and integrated electric power 4 wheel drive motor with advanced aerospace engineering cutting edge technologies.
According to Yogesh Ramanathan, Founder, and CEO of Vinata Aeromobility, the company is hoping to perform flight trials of their Hybrid-electric Flying car by 2023 and make it available for Commercial flights by 2025.
It can fly at a speed of 100 to 120 kilometers per hour and can carry two passengers at the same time, with a maximum flight time of 60 minutes at a maximum height of 3,000 feet.
Conclusion
Other than these some more companies are working towards the Air Taxi services around the globe which include Vertical Aerospace, Hyundai’s helping hand, a joint venture between the Boeing company and Kitty Hawk Corporation.
FAQ
What does Air Taxi mean?
Air taxis are small commercial airplanes used for short flights between localities.
Which company is going to start a drone air taxi service in India?
Malaysian budget airline AirAsia is planning to launch a flying-taxi business as soon as next year.
Does Dubai have a flying Air taxi?
Dubai has one of the first major projects of Air taxis, The Autonomous Air Taxi (AAT) is an 18-rotor drone taxi. The company claims to be the world’s first ‘self-flying taxi service’.
Traveling through Indian roadways raises a lot of concerns especially intracity travels. The urban cities in India have a lot of traffic, infrastructure problems which are bad roads, an increase in population, etc. All these make road transport a hurdle and reaching a place on time harder.
In order to solve the issues faced due to traffics and bad infrastructure in the country, the Chennai-based e-plane company is in the process of developing an Air Taxi which would take the aerial route.
Ubifly Technologies Private Limited was founded in the year 2016. The company is better known as the e-plane company and was founded by Satyanarayanan Chakravarthy and Panjal Mehta.
Panjal Mehta is an alumnus of IIT Madras and a student of Satyanarayanan. Satyanarayanan is the co-founder and CTO of the company. He was a professor in IIT Madras teaching aerospace engineering since 1998. He is also the head of the Centre for Propulsion Technology and the head of the National Centre for Combustion Research and Development Lab (NCCRD).
Pranjal Mehta(Left) with Prof.Satyanarayanan
One of the major reasons that led to the launch of the company was his study on propulsion. Panjal Mehta was involved in working towards building a short-distance daily flying vehicle.
Aim of The e-plane Company
Satyanarayanan has explained that the main aim of the startup is to redefine intracity traveling in the country. The company will concentrate on developing electric planes and unmanned aerial vehicles (UAV). This will mainly be concentrated on short-range intracity travels.
He also says that the products developed by the startup will be different and unique in nature. The company is building a hybrid mix of drones and electric aeroplane technology.
He gave an explanation saying that the vehicles will take off and land similar to a drone but will move forward in the air like an electric aeroplane.
4th Dec 2020 – The e-plane Company raised an undisclosed amount of funding led by Speciale Invest.
3 March, 2021 – The ePlane Company raised a funding of $1M from Naval Ravikant, as a part of its seed funding round.
UAV models
Satyanarayanan who is the co-founder has revealed that the startup has already designed three UAV models.
Ek Hanz
The first product developed by the company is TEC’s Ek Hanz. It is a UAV model is designed especially for delivering goods and services. It can carry up to 6kgs of load and will be able to fly continuously for 100 km at a speed of 50 km/hr.
Ek Hanz by the e-plane company
Scout
The next product of the company is Scout. It is a drone that is designed and developed mainly for surveillance and security purposes. This drone has a powerful onboard processor and also has a long-lasting battery. This will ensure proper surveillance during certain crises.
Vayu
The company is also in the process of developing a hybrid auto-pilot e-plane which will be called as Vayu. This model is also developed for surveillance, but it will be concentrated on operating in larger areas. The main feature of Vayu is that it is smaller than Ek Hanz and Scout, but will fly continuously for more than 2 hours in a single charge.
Air taxi
The company is also working towards building a two-seater electric air taxi which is named as e200. This will concentrate on office goers who travel on a regular basis to work.
The startup has claimed that its copyrighted ML algorithms will enable their flights to travel through the air without supervision. The vehicle would take off and land like a drone with just a push of a button and the vehicle will move forward like a plane.
It is said that their air vehicle will automatically be able to detect any obstacles which come on their way such as trees, electric poles, etc. to ensure a safe flight. Hence, the air vehicle wouldn’t require supervision.
Commercial drone market of India
India’s commercial drone market is expected to grow at a CAGR of 12.4 percent in 2020-2026 according to a report by Research and Markets. The report has also added that the growth in the use of drones has been increased because of the Covid-19 outbreak globally.
As of now, the majority of drones are being used for surveillance and mapping. The outbreak of Covid-19 in the country has made a realization of the importance of drones for deliveries.
In June 2020, 13 companies were allowed to conduct trials which were let by the Directorate General of the Civil Aviation (DGCA). This trial was conducted to check the possibility of using drones for delivering medicines and other necessary goods and services.
Future plans of The e-plane company
Satyanarayanan has explained that the startup is not working towards or focused on building drones but is aiming towards building and developing electric planes or Air taxi for intercity transportations. They are working towards building electric planes which will be the future of intracity travel.
The co-founder had said that the company is currently building a two-seater e-plane. This will be concentrated on working as an Air taxi. He said that the company will take at least 2 years to build the aircraft and some more years to receive permission from the aviation industry.
FAQ
What does Air Taxi mean?
Air taxis are a small commercial airplane used for short flights between localities.
Which company is going to start drone air taxi service in India?
Malaysian budget airline AirAsia is planning to launch a flying-taxi business as soon as next year.
Does Dubai have flying Air taxi?
Dubai has one of the first major project of Air taxi, The Autonomous Air Taxi (AAT) is an 18-rotor drone taxi. The company claims to be the world’s first ‘self-flying taxi service’.
Conclusion
India could soon join the race towards devising better ways of transportation. As The e-plane company is working towards building a two-seater electric air taxi which is named as e200. This will concentrate on office goers who travel on a regular basis to work. The startup is also working towards raising external funding.
Uber and Lyft are working together in creating a database of their drivers. They are creating a database of the drivers who have been accused of sexual assault from the customers. They are taking the list of drivers who have been banned from the platform for sexual assaults and other crimes.
They are creating a database of people who have raised passenger-safety concerns in their platform. This safety programme is done because of the promise made by Uber, they will look into the crimes related to sexual assault. 15 months ago, they had revealed around 3,000 sexual assault cases had been reported on the company’s platform by passengers.
Let’s look at the new initiative taken by Uber and Lyft towards increasing customer safety.
The database developed by Uber and Lyft will contain information about the drivers who have been banned from the platform. Due to their involvement in sexual assaults and other crimes.
In the initial stages, Uber and Lyft will list the drivers who have been banned by the platforms in the U.S. This database will be overseen by the company HireRight. HireRight is a company that specializes in background checks and they will take care of getting more detailed information about the drivers and listing them on the database.
Reason for Creating a Database of drivers
Uber and Lyft have been criticized in the past by U.S lawmakers regarding the safety concerns for their passengers. Since then both the companies Uber and Lyft are working together towards antitrust and privacy-related concerns.
Sharing the information about the sexual assault faced by passengers by the drivers is really important. Most of the time the victims don’t file a formal complaint against the drivers. This acts as an advantage for the drivers who have been involved in those crimes and they easily escape from facing the consequences for their actions.
These drivers would easily shift from one platform to another as there are no legal procedures and actions taken against them. This would increase such crimes and the safety of the customers would be at risk.
This database platform is mainly concentrated on increasing the safety of the customers. This will make the companies in selecting the right drivers for their companies which will increase the safety of the customers.
Uber and Lyft have said that they would maintain the privacy of the victims, and wouldn’t provide any information about the victims of the incidents.
They have categorized the incidents for dismissing the drivers in six different categories which are
Attempted non-consensual sexual penetration
Non-consensual touching of a sexual body part
Non-consensual kissing of a sexual body part
Non-consensual kissing of a non-sexual body part
Non-consensual sexual penetration
Fatal physical assaults
Uber and Lyft have said that only a very small amount of the drivers have been involved in behaviors that are listed in the above categories. Hence, the companies who have access to the database can allow drivers to provide services for their platform after their own background checks and investigations.
The Companies which are involved in food deliveries, e-commerce deliveries, and companies involved in similar business models would get access to the database. Since there is a third-party company that specializes in background checks, the companies will be able to get detailed information about their drivers.
Any company that has access to the information in the database is free to hire those drivers according to their own background checks. This database will help the companies in maintaining their goodwill and increasing the safety of their customers.
This added layer of protection is being added because of the criticization made by Rape, Abuse, and Incent National network. It is a victim’s rights group which stated that the platforms are not doing a proper screening of their drivers.
FAQ
Who are the Founders of Uber?
Travis Kalanick, Garrett Camp are the founders of Uber.
What is the valuation of Uber?
As of May, 2019 Uber’s valuation was $75billion.
Who is the founder of Lyft?
Logan Green and John Zimmer are the founders of Lyft.
Conclusion
Uber has been asked to pay a fine of $59 million by California’s Public Utility Commission. When Uber had released the details of the past abuses faced by the customers, the commission had asked for the details of the victims. Uber refused to provide the details of the customers as it wanted to maintain the privacy of their customers and hence the company was asked to pay a fine.
Lyft is waiting for Uber to solve the issue related to privacy concerns so that they can release the reports about the past issues faced by their customers. This joint initiative from both the companies can be really helpful for a lot of companies and make the customers using their platform to feel more secure and safe.
StartupTalky is one of the strongest online entrepreneurial communities in India and engages with several professionals who are doing great in their lives and have achieved the impossible. To share their learnings and inspire as many people as possible, these ‘StartupTalkers’ will be featured in StartupTalky’s “Know the StartupTalker” series.
One such StartupTalker is Dhruvam Thaker. Dhruvam is the founder of ‘The SMART Taxi’. You will learn a lot from Dhruvam Thaker’s journey in his own words!
If you want to know more about the founder of Smart Taxi, Smart taxi Business Model, the smart taxi revenue, Startup Story, Challenges they faced etc., what better place to know about it than from Dhruvam Thaker, himself.
I was born in a middle-class family in a small town named Jamnagar (Gujarat). 3 months after my birth, we shifted to Ahmedabad, where I grew up. My childhood was engulfed in Indian music as my father was fond of singing and playing the harmonium.
According to my parents, I was very calm, patient, a good observer, and full of deep understanding. On the other hand, I was very shy in nature and apprehensive of interacting with others (excluding my family members). I loved playing with toys, mainly cars and trucks. I used to spend hours playing with them without craving for company. As I was growing, playing cricket interested me; it groomed me to converse and connect with people. The cricket fraternity in my society had a dearth of left-handed batsmen and since I followed this style, it gave me an advantage when it came to being selected for the local team.
Coming back to the present day, my father is a retired government bank employee, my mother is a homemaker, brother is a graphic designer and painter, and my sister is a commerce graduate. My siblings have hearing and speaking related disabilities. My wife is an architect and I have a kid who is 3 years old.
Talking about academics, I was good in studies and usually ranked amongst the top three in class till the 9th grade. My family enrolled me in a Gujarati medium school from kindergarten due to financial constraints. The school was close to my home and was a well known one. When it was time for me to start the 10th grade, our financial condition had improved significantly. So I shifted to a new school which was far from my place but better than the Gujarati medium school. I managed my travel to and from this school by cycling. My father has spared no expenses in giving me the best educational facilities.
My academic history and inclinations compelled me to take up science in senior secondary school. It was my dream to become an engineer and another reason to pursue science stream. However, everything shattered when I failed in the final exams of the 12th grade. My parents were disappointed. I was stressed and gloomy; the feeling that the society’s assumption of me had changed engulfed my thoughts. It was difficult for my parents to see me this way. But they pinned their hopes on me and asked me to join a diploma course based on my 10th grade results. I agreed and secured an admit to Nirma University, one of the most reputed institutions of Gujarat. I was back!
The innate passion for automobiles and machines never left me and spurred me to opt for mechanical engineering. I performed exceptionally in each semester, and was awarded a silver medal for standing second in the entire university. I was actively involved in co-curricular activities but didn’t secure any awards. The consolation participation certificate was more than an award to me; I’ve always considered participation more important than focusing on the result since it brings valuable experience.
Staying idle was never a choice for me, so I started doing part-time jobs with short tenures. Each of those tenures taught me some life lessons which I recall, apply, and follow every day. Thanks to the campus placement drive, I had a job in my hand from a well known MNC in Bangalore, that too before completing my diploma! My mother was hesitant as it meant moving away from Gujarat. It was my father who ultimately convinced her and I landed in Bengaluru in 2008.
Planning ideas and executing them was a skill I was passionate about from my college days. Hence, I selected production planning as a function. Staying in Bengaluru was heaven for me; it was poles apart from Ahmedabad from a weather perspective. I had troubles communicating with the locals in the initial days.
However, I learnt Kannada, the native language of the people from Bengaluru and overcame this obstacle. My office colleagues helped me a lot in learning Kannada. In a span of 2.5 years, I was well versed in Kannada, and despite leaving Bengaluru in 2013, I still find it easy to communicate in Kannada which is evident from conversations with my ex-colleagues from Bengaluru.
During my professional journey, I always believed in one variable: change. I was constantly looking for opportunities where I could try my hands on something unexplored, something different. Many times, I was responsible for troubles that halted the entire production line! On the other hand, successful efforts have proven as head turner for the organization. My senior was a source of support and encouraged me to explore. Seeing my curiosity to learn, he enrolled me in activities related to process improvements, production re-engineering, 5s, Poka Yoke, Kaizen, ISO, etc. I was enjoying this since I was a catalyst for bringing changes in my organization.
In the year 2010, I got married to a girl who was my school friend, and she joined me in my Bengaluru journey. An architect by profession, she chose to focus on her career post marriage and got the opportunity to work with a reputed architecture company. In the year 2012, I first felt the need to do something of my own. But lack of courage dissuaded me from taking any step.
In 2013, I got an opportunity from a well-known tower infrastructure company for a position consonant with my past experience. The position was in Ahmedabad. I wanted to stay with my parents and did not waste any time in accepting the role.
I never fathomed the shift in my motives and aspirations the relocation to Ahmedabad brought. I joined the company and was aligned with its culture and pace after a few arduous days in the beginning. During those days, my inner voice kept nagging me to get serious about my own venture. I kept neglecting it, subduing it with other thoughts or by focusing on the job. I discussed it with my family but they asked me to focus on my full-time job and regular income rather than taking the risk of starting something from scratch. On the other hand, I was gearing up to go for it! Finally, my inner voice superseded my fear of failure and other self-created mindset barriers one day. I resigned from my job without informing anyone. When 15 days of the notice period remained, I apprised my wife and told my parents about it a week earlier.
A disaster was in the making because of me. I was bombarded with questions about future plans and goals and I did not have a clear answer and repeated the same line, “I want to have my own startup.” As usual, some of my friends, society members, and colleagues started making fun of my decision. But this time, the negative comments were only adding fuel to my fire. Despite heavy resistance from each direction, I began.
What Does the SMART Taxi Do?
The SMART Taxi
The future is all about delivering a unique experience and not just delivering a service. We understand this very well! The SMART Taxi—a call based taxi service—is about creating the best in class cab riding experience, specially crafted for business class people and corporate companies.
We achieve this by providing well-maintained cabs loaded with state of the art features and driven by well trained, courteous professionals. We have observed an upward trend in demand of Indian consumers for the best quality services. There is a class of people ready to pay premium charges to avail such services, and they are our targeted audience. All our cabs welcome customers with a defined welcome speech followed by soothing music for a relaxing ambience. Moreover, we offer water bottles, cookies, snacks packet, and chocolates to our customers as part of their package.
Our cabbies (drivers) are trained and tested in terms of behavioral skills and driving skills to add value to the overall customer experience. With us, customers can customize the experience by making it richer and prestigious as per their needs. This is possible by the addition of WiFi connections, Amazon kindle, cold drinks, magazines, and many other features. We do constant market research for adding more and more features in our list as per the market trend for enhancing customer experience.
We offer cabs for hourly rental and outstation. Hourly rental is best suited for roaming within the city and starts with hiring cabs for 8 hours/80 KM. Outstation journeys are traveling outside cities for one or more days.
The SMART Taxi was launched in Ahmedabad with one cab on Sep 16, which I was driving. Today we are an aggregated company with 60+ best-performing cabs; this includes a mixed portfolio of Sedans (Dezire, Etios, Xcent, and Amaze) and MUV ( Innova, Eartiga, and others). We are present in 7 cities: Ahmedabad, Vadodara, Rajkot, Jaipur, Pune, Indore, and Bhopal, and have a strategic time-bound plan in place to expand to other cities of India.
When And How Did You Come Up With SMART Taxi Idea?
It all started in 2012 when I was associated with an MNC and traveled in taxis. I was noticing every aspect of ride hailing and it wasn’t up to the standards for what the customers were paying. Poor car condition, rude behavior of the drivers, etc. were some of the factors persistent across all of my rides. On the contrary, traveling in flights and staying in hotels were fantastic experiences.
One day while traveling back from Bengaluru via flight, an idea struck me through a a single liner, “what if a taxi could offer hospitality like the airlines and the facilities of a good hotel?” I started analyzing the prospects and gathered the courage to launch this idea. It took me 4 years to finally go for it and that’s how we started The SMART Taxi.
How Did You Come Up With The Name And Logo Of Your Startup?
The SMART Taxi Logo
As the entire concept was articulated by a single line, “A cab offering hospitality like the airways and the features of a reputed hotel“, I was clear on the fact that our logo would have to capture all the elements. Secondly, it was all about a cab smart enough to understand customers’ expectations.
To make a perfect combination of the above two key requirements, I along with my brother (who is a graphic designer) made around 22 rough sketches, with various design combinations, fonts, colors, and styles. We selected smart taxi as a name which turned out to be very common when we googled it. To distinguish it from the others, we put ‘smart’ in upper case to highlight it and added ‘The’ as a prefix to the name since it reflects supremacy and uniqueness.
Finally, it came down to the last and the most important word, ‘Taxi’. We wanted to keep the taxi flavor alive in the logo, and thus, selected yellow and black as the color combination with a badge on both the sides. We wanted our brand to exude the comfort and hospitality of the airways and applied bird wings vector on both the sides to reflect it.
We are a cab aggregation company mainly targeting B2B customers. We onboard cabs of individuals or fleet owners like the other companies. The only thing which differentiates us from them is our process. We do not keep any hatchbacks in our portfolio! Sedans and MUVs are the only two car segments we invite for the initial screening.
All individual cab owners and fleet owners have to cross five steps of the selection process to get on board and drive for us. It includes every minute step: verifying the vehicle condition, testing the cabbies (driving skills, behavior with the customer, their capabilities to handle physically challenged, senior citizen and pregnant women), and taking telephonic interviews to test their understanding. Without clearing it, one cannot join us. It’s a clear process which we have been following from the day of inception with a zero compromise policy. To put it precisely, after completing all formalities, only 1-2 out of 5 cab applicants finally on board our venture.
Next, we keep an optimum number of cabs according to the city load and distribute sufficient amount of business amongst them to keep them motivated. We also monitor cab occupation ratio constantly and hunt for new cabs (from a database of cab owners collected from campaigns). We start inviting new applications only if there is a rising trend in demand. We have kept our on-boarding process short, crisp, and fast enough so that it takes only 3 hours to get a cab join us without skipping any part of the evaluation.
Being a bootstrapped startup, we take help of online platforms like Google form for cab registration application and WhatsApp for communication. Coming to the profit sharing strategy, we pay our partners according to the market rates deduced through thorough research. We apply our margin on the rates and charge the customer accordingly for providing a high-quality, safe, and unique cab riding experience. We form an agreement with validity from the cab owners and fleet owners about their understanding on the prices, service and payment terms, cancellation terms, penalties, etc. Moreover, we make sure that we pay inline with the agreed rates and time frame (which is paid within 30 days of trip completion) without a single miss, directly into their bank accounts.
To maintain transparency, we provide computer-generated statements every fortnight to all associated partners which specify the executed trip details, payable balance, and the payment made. On request, we also provide them a crisp summary of how much business they have done with us, how many rides we have assigned to them, how many they have accepted, and how many they have completed. Customers can book our cabs by calling on 8238883335. We have a centralized customer booking center, and from here we delegate the bookings to local cab partners or fleet owners associated with us.
Currently, the entire process happens over phone calls. Post finding a suitable vehicle, we communicate the cab details to the customers (at least 10 hours in advance). Likewise, we communicate the trip details to our cab partners. Both of these communications happen through WhatsApp.
What Other Options Do Your Customers Have? And How Are You Different From Them?
Features of The SMART Taxi
We compete with all the cab companies who operate in the corporate domain but mainly with Car Club, Avis, Orix, etc. We differentiate our service in terms of the features offered as well as the prices. Some of the features and customization options we deliver to our customers are not offered by the other players. In terms of price, we have positioned our self a bit lower compared to them, and this gives us the added advantage in capturing market share quickly.
Many people have a misconception about us that we are another platform like Ola or Uber which is not the case. I don’t blame them because both these companies are dominating the Indian market at the moment. However, there are fundamental differences between us. A few of them are:
Their core business is for traveling from point A to point B within the city, whereas we majorly operate outstation journeys.
They have hatchbacks, sedan and MUV as vehicle category to offer but we operate only with sedans and MUVs.
They provide app-based service whereas we are call based.
Their major business comes from individual customers whereas our clientele is the corporate segment.
They target the masses whereas we operate for a niche population.
How Did You Acquire Your Initial Customers?
We started with one cab which I was driving for the initial few months. Being the creator of the concept, it was easy for me to explain the audience and give them real information. We got our first customer through Just Dial. During the initial days, I was attending customer inquiry calls, responding to them, and driving them to their destinations.
Our core focus on customer experience means our customer isn’t hesitant to pay slightly higher than the market rate. From there on, referrals started floating in through word of mouth publicity. In parallel, I started hunting for the right cab partners who were willing to join me in this venture. From one we became three, then seven, then twelve, and our cab quantity also increased. This gave us the confidence to enter into the corporate segment (B2B).
What Is The Revenue Model and Who Are the Sources?
Coming to revenue generation, we pay our partners according to the market rates derived from deep research. We apply our margin over it and then charge the customers (who are mainly B2B) for providing the best in class, safe, and unique cab riding experiences. For the corporate segment, we mainly pitch to corporate companies (from small scale to large scale organization), hotels, tour operators, etc. to cater to their cab requirements.
We do it via direct walk-ins, referrals, social media platforms, or by sending promotional emails and messages. We are a bootstrapped startup. On the mentorship aspect, I would like to mention three names: the late Mr. Himanshu Chudasama, Mr. Gagan Gupta, and Dr. Anu Gupta for their kind support in guiding me through some of the toughest turns.
How Did You Meet Your Team (Co-founders), And What Is Their Background?
Our company is a proprietorship firm. As a team, there are two individuals (management graduates) who support me as business consultants in the core areas of our business— strategic planning, marketing, accounting, cab onboarding and business expansion, customer help desk, and booking center. Our core strength is our ground team i.e. the fleet owners and cab owners associated with us. They are the people we have taken utmost care in selecting and they are delivering an experience as per our set standards, 24X7.
What Were The Challenges You Faced In Your Journey And How Did You Overcome Them?
Leaving a well-paid job after serving well-known organizations for eight years to start a venture was the first challenge. It was followed by social pressure from my family, society, friends, and relatives to take up a job again. The second challenge was to make cab partners agree to deliver a rich experience rather than a simple service. I have walked on streets and selected the few who were able to understand the concept. And then I trained them.
A Smarter Way to Travel
From a financial aspect, after launching the startup in 2016, it wasn’t easy being a married guy having a nine month old kid, two siblings with disabilities, and family to take care of. I was surrounded by several responsibilities and liabilities.
I remember the time when it was Diwali the next day and I had only Rs 400 in my wallet with nothing in the bank account. I literally had to drive 23 hours on that day to eke out the expenses; we managed to get sweets and crackers for my son and the family. After entering the corporate segment, a large payment we were to receive was delayed by 2 months. On the other side, to continue hassle-free ground operations, we had to pay our partners on time. It created a situation where we were left with zero balance in the account.
“Self-belief, patience, and persistence kept us going despite the obstacles”
Where Do You Want To See Your Startup (SMART Taxi) In The Coming Years?
Our vision is to become ‘India’s no. 1 cab company in customer satisfaction’ by 2025. Our further plans are tied to team building, marketing, product innovations, investment, expansion, and we’re diligently following it.
What Technology Stack/ Entrepreneurial Hacks/Online Tools/Services/Apps Do You Use In Your Startup?
We use Google Form for cab partner registration, conducting market surveys, and customer satisfaction surveys. We use LinkedIn, Facebook, and Instagram for brand awareness and hiring. Moreover, we have a confirmed business account on WhatsApp which we use to communicate with customers and cab partners across the cities where we have a presence.
We use MailChimp for email campaigns. And for professional emails, we use office 365. We also let our customers share their residential locations via Whatsapp and forward the same to our cab partner along with other customer details and trip information to allow them to reach the customer’s place without making a single call . To track our cab partners’ location, we have experimented with a free app called Life36, which allows us to view real-time location of individuals. For accounting, keeping track of the trips, invoice generation, etc., we use a subscription-based mobile app call “Vyapar“.
What Do You Look For In A Candidate Who Aspires To Join Your Company?
Passion to do something new.
Ability to present the correct picture, rather than presenting a manipulative one.
Accepting mistakes and the ability to learn from it, and to develop a future course of preventive actions.
Appreciating others for their contribution.
Openness.
Time management.
Value for commitment.
Brand loyalty.
What Are Your Strategies To Build An Awesome Work Culture In Your Company?
The SMART Taxi – Work Culture
I personally believe in creating a workplace which is safe and where everyone has the freedom to speak. Secondly, appreciation for doing something good is required so that people feel motivated. The appreciation may be small or big depending on impact, but it should be there. We are planning to introduce “thank you” cards which will be of a small piece of paper with “thank you” written on it. The motive behind this is to thank people for their work—both direct and indirect. The person who is giving the card and the individual receiving it are assigned some points. The person with the maximum points will be rewarded.
What Did You Wish To Become When You Were 15?
When I was 15, I wished to become a renowned engineer who creates an innovation that changes history!
Any Quote/ Advice That You Would Like To Share With Budding Entrepreneurs?
There is no substitute for hard work.
Success comes after failures, and failures come after success. The only thing which keeps you going ahead is your passion for not giving up and your faith in yourself.
Conclusion
Everyone who knows Dhruvam Thaker knows what a hard working person he is and how inspirational his story is. A soft spoken individual with a desire to become India’s No.1 cab service. He is definitely someone to look out for in the startup world. If you are ever in need of a Cab be sure to keep The Smart Taxi in mind next time!
Souvik Dey
