Why OLA is Failing in India?


Why OLA is Failing in India?: There used to be a time when your mother and aunt had to go somewhere or you yourself had to go to the railway station to catch the train. The biggest headache was finding and bringing an auto or rickshaw from the market.

But then in 2010, Bhavish Aggarwal and Ankit Bhati started a startup named Ola.


Ola came in the market and slowly spread all over India. It has completely removed the headache caused by catching a rickshaw.

Now, book Olacab in 2 minutes, a cool AC car at your doorstep in 10 minutes. And then go wherever you want to go comfortably. But the question arises that when life had become so sorted after the arrival of Olacab, then why is Ola’s business slowly sinking?

When Ola’s came into the market people had the habit of commuting by rickshaw or auto, which was not particularly convenient, but what was the option. Like most startups, Ola thought that right now people get used to their service and after that, they will start earning money. And this was also his biggest mistake.

See how? When Ola’s came, he gave a good discount in the starting, like the first 3 rides started absolutely free. 50% off on its rides. Even in sharing also 30 – 30 percent off.


You yourself will remember that there was a time when Ola used to offer rides of five rupees per kilometer. People started liking his service. Why don’t you even come? I was getting to go in an AC car by paying less fare than an auto.

The situation was such that in cities like Delhi, Mumbai, and Bangalore where there is heavy traffic, people who had their own vehicles also left their vehicles and started commuting to the office from Ola.

When Ola’s entered the new market, it was faced with the challenge of connecting drivers with it.

And for this also Ola had a solid plan. After all, why does an employee need a lot of money Ola showered money on its drivers.

Ola’s gave good incentives to its drivers. So much so that there was a time when Ola drivers used to earn eighty thousand to one lakh rupees a month.

But the question comes, when both the drivers and customers of Ola were so happy, then how did Ola flop?

Friends, the reason behind this is Ola’s huge offers and allowances, which he gave to his customers and drivers. Initially, Ola’s gave discounts by pressuring people, the result was that the company itself started going into loss.

And so to recover their money they started increasing the prices. When people saw that till now it was costing 100 rupees to go to the place. Now 200 are looking at the same place. On top of that, the fare is doubled at rain or demand places like airports or railway stations.

So they felt that Ola has started looting them. And because of this, customers started disconnecting from Ola. He did something similar with Drivers as well. To reduce the loss, he reduced the commission of the drivers.

Because till now Olacab drivers were earning a good amount of 80-90 thousand rupees, so people left their jobs of 20-25 thousand and started working in Ola by buying vehicles on loan.

But when Ola reduced the commission of the drivers as well and brought their monthly income of eighty thousand to twenty thousand. So the drivers also started disconnecting from Ola. Now new drivers were not coming and those who are there are also leaving Ola.

The remaining few drivers also accept the ride only when they have to go for a short distance and they are getting a commission in a reasonable amount. Or they talk to the direct customer and cancel the ride and drop them at the destination for less money than Ola’s charges.

That is, till now the profit that Ola’s used to get, now the driver and the customer together are putting it in their pocket. Because the company went into loss, the pressure on its employees to handle the situation increased. And this pressure increased so much that most of the employees of Ola started leaving the company.

And it also includes people working on big posts. In the last 2 years, the top 16 executives of Ola have left their jobs.

Ola’s running at a 63% loss of its revenue and now there is no hope of recovery. So Ola started their new startup in the EV segment called Ola electric here they launched an electric scooter and what do you think? Will Ola be able to be as successful again? To know more about ola electric, tell by commenting.

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