Olacabs' aggregation model allows it to grow faster than others, says CEO

Olacabs founder and CEO Bhavish Aggarwal

Q. Could you elaborate on Ola's luxury service?

A. We started our luxury segment for customers who are expecting something more than a regular economy sedan. Customers who would like to travel in "better" comfort and style but do not have access to hire a premium car for point-to-point use. Our intent was to make it accessible to such customers. The business model of aggregation remains the same in the luxury category as well. This segment was started by Ola in September 2013 in Bangalore followed by Mumbai in ?January 2014.

Q. How have customers responded?

A. Ola's luxury service is available in Bangalore and Mumbai. The service has been received very well and patronized quickly. It has been growing at over 100 per cent month-on-month. Ola drivers make the most of their idle time by logging on to this platform to increase their business as well.

Q. Your views on Uber and similar services?

A. The Indian problem to solve is unique and requires a deeper understanding. We have been the pioneers in the aggregation space and are available across categories in India today. With over 9,000 cars on our platform, our understanding of the Indian market - both in terms of the consumer and the operator, as well as city level dynamics of demand and supply is much stronger. Cash is the most preferred way to transact and a person to talk to on the other end is important to them. A wider choice of categories, booking modes, payment options etc. makes us the preferred choice for the Indian customer. A westernized template will not solve an Indian problem as the context is very different.

Q. What about competition?

A. The cab industry is the fastest growing market in the transport segment. Our model of aggregation allows us to grow faster compared to traditional players. A large part of the market, especially in cities where cabs don't exist, is still unorganized. Through our perpetual technology innovation, intense analytics and seamless tech integration at every level, we clearly stand out from the rest. At another level (through tie-ups with car manufacturers and financial institutions) we help drivers become entrepreneurs and we give them enough business to pay their EMI on time reduce their idle time. It is this holistic approach to the ecosystem that keeps us ahead.

Q. How was the last year's performance? And what's next?

A. Last year has been a good year and saw a growth of 40 per cent month-on-month. We introduced our luxury segment as well as the Ola mini segment which is getting popular by the day. Ola Mini is the preferred choice of over 35 per cent of our customers for shorter distances and city travel. We also launched in multiple cities, taking the count to seven cities. We are already introducing more categories in existing cities as well as launching in new cities this year including some Tier 2 cities.