Will Ola, TFS or Uber be successful? – A thought

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I was just browsing through Facebook and came across a post shared by one of my friends sharing the bad experience what he had with Ola!!!

Ola ! Taxi For Sure ! Uber… these are few names without which you can’t even imagine your life if you are living in big cities like Bangalore, Chennai, Hyderabad etc.

So, what is their business model?

Basic business model behind these aggregators is that they offer a platform for taxi owners to reach customers but they don’t own any vehicle of their own.

Will these kind of aggregators will be successful in long run? I don’t think so. Why?? Have I gone mad?? No !!!!

I will explain my point to you. Before going into Taxi aggregators and their business consider the following graphic

flipkart_snp

Its a well known fact that in Indian e-commerce market Snapdeal & ebay have largest base of sellers. Flipkart majorly works through their own wing ‘WS Retail’. Similarly other common fact is that Snapdeal & ebay are not as successful as Flipkart & Amazon are.

Main reasons what I could think of are –

As Snapdeal/ ebay/ Shopclues target more on increasing choice for the customers they are bound to tie up with more number of sellers hence they give less weight-age to seller’s attributes.

You can find every small thing over these websites which you won’t even think of searching on Flipkart or Amazon.

But nothing comes for free, with a large catalog of products these sellers also present a large list of catalog for  issues for Snapdeal, ebay or shopclues.

  • These sellers do not send product in time
  • Even though they don’t have product they still show that on website
  • Snapdeal or shopclues can’t have checks on what these sellers are actually sending

The similar correlation you can draw between Ola, TaxiForSure and Uber vs. Taxi providers who own cabs i.e., Mega, Meru, Savaari etc.

Ola, TFS and Uber have to maintain ample amount of inventory of their taxis but as in the case of e-commerce, these players are facing a huge amount of negative publicity due to their drivers. Sometimes they ask for extra money, they abuse you, they rape you etc…..

P.S.- This is not a promotional material for any of the brands mentioned.

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Mohit Bansal(23) is B.Tech in Electronics and Communication Engineering from Indian School of Mines, Dhanbad, India. He has interest in business and entrepreneurship and has published couple of research articles. He is also associated with various NGOs. He is with Techaloo when it was just in concept stage. The Techaloo site was not existing even then. Currently Mohit is working with Mu Sigma as a Business Analyst Profile.

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