Ola works like a typical startup, the aim of startup is never to earn profit, startup also says that in the beginning, there is no money to be earned, growth is needed in the beginning, more and more people are needed, we will capture the whole market once, every person. If you get used to it, money will be seen later, so these startups do not earn money in the beginning, there are investors behind them, to whom money is given, take the money, blow the money, give the goods of hundred rupees for fifty rupees, just one time customer. Collect, earn money later.
How does this startup work?
Money was looted in the FIRST PHASE, what did Ola do in the first phase? They gave so much money that every person is wishing that Ola is a great thing, then the driver kept on adding the driver, the money was distributed to the driver.
As a user, in the beginning, the first Ola ride was free for us in thirty rupees, Ola in fifty rupees, five rupees per kilometer, four rupees per kilometer, so cheap that every person was ready to sit in Ola, the customer was happy and paid so much money to the driver that every The driver was ready to drive the car, the driver was also happy, both were happy, the company was not happy because money was being spent but the company said that no one will take it out later.
SECOND PHASE
The second phase is of trust, now the company is new, now it may be giving for some time, later if you are not able to give, then gradually we started getting trust on Ola, it has been a month, it has been six months, It’s been a year, it’s been two years, this discount is being given, the company is very good, it is cheaper than auto, the man roams in AC, then gradually the customer got confidence.
There are many people who are in Mumbai, Delhi , used to come to Pune office daily, used to get stuck in traffic for an hour, he said, gave up the idea of taking his own car, said, don’t want a car, will go by Ola, will come by Ola, those who had a car, they parked the car in the garage Ola cars will be available for commuting, customers’ trust has come, their people have become customers.
Here the taxi drivers are having different fun, when they sit in their circle, they say, yes, your brother earns lakhs of rupees, then there were others who were doing jobs of 20-25 thousand somewhere; So it is not a bad thing, people left their jobs, bought vehicles on EMI and became drivers. Both have become dependent on Ola. Brother, this customer has left his car, he is dependent on ola and here your driver has left his job, has taken a loan and has EMI for five years, now he cannot even leave. Drivers also depend on Ola, customers also depend on Ola.
THIRD PHASE
Third phase investor said it’s been two years, five years, ten years, what do you want brother, how many rupees will you lose, now earn money, Ola said, now earn, don’t take tension, what was the first thing, Ola’s discount stopped, Ola’s cashback stopped, now search pricing and If you apply pay for example, where you used to reach in 100 rupees earlier, it is costing 250 to go there, whereas it is costing 300 to go there. The customer came to know that now he has started taking too much money.
Said to the driver that the driver has earned so many years, now he will not earn, while gradually reducing the commission of the driver, the driver who used to earn one lakh rupees, brought his earnings and kept it at twenty five to thirty thousand rupees. The company thought that now the money will be saved because the driver has reduced the expenses and increased the income so much, now it will be fun.
Ola’s profit was not made, but yes, the loss started decreasing gradually, but due to this loss, three people got angry and due to the anger of those three people, the company lost their money.
Said, when my income increased to lakh rupees, I spent 775 thousand rupees, I have to pay the EMI of the car, the price of petrol has increased, petrol has become expensive, I have got my children sent to a good school, I have got a house. Took a good place, now I have so much debt already and you have reduced my income, now where will I go, then the driver started getting tense as to how to drive the car, on top of that, Corona came and in the middle, the car lasted for six months and a year.
Even if it did not work, all these people went to the village, including in Mumbai and Delhi alone, the bank seized thirty thousand cars, whose EMI was due, the villagers went away, so there was a time when cars worth around one lakh were sold in Bangalore. 30,000 was left all of a sudden, for the first time the driver was disillusioned, the existing ones were disillusioned, the new men were scared that what would happen to them. So the new drivers are not coming and the old ones are leaving, so the number of caps has decreased. Those who still had the courage, we will go.
If I get less, then the driver asks before every right, where will you go, then if the driver thinks that you have to take ten to fifteen kilometers, where he will get a good fare, then he cancels the book, otherwise he cancels it, now he would have booked you first. Yes, the driver used to be available in two minutes, now you book the car, it is canceled three times, the fourth time the driver comes, the customer is upset.
Who is the third man ? The third person who got angry, Ola’s own employees got angry, what is their problem? Mr. Bhavish Aggarwal, the founder of Ola, is a very ambitious man, many people dream of becoming such a founder, but he is a very angry man, a very ambitious man.
They think that a man should work for 28 hours a day, he calls the employee at 2 o’clock in the night, he will have a meeting at 2 o’clock, he calls on Sunday, he calls for holiday, he has created such a working environment there. There is pressure in one month that if you work for three months, then no one can survive there, you notice that Bhavish Agarwal started the company, he calls himself, employee number one and slowly two employees come. Yes, they get the number of employees, so at present the number of employees working in Ola is fifty thousand something and currently there are 1500 employees in Ola, that is, in the last ten years, 48 thousand 500 people left the job from Ola. In the last two years, top 16 executives, CFOs, CMOs of this level, who have created amazing things and understood the basic technology, all of them have left.
What is Bhavish Aggarwal doing right now ? Bhavish full focus has put Ola cabs on the side and launched a new one, now he has full focus on Ola Electric, he is focusing on the new company on making two wheelers, he has almost left the old company and that’s why the old company is no longer stable Just some time ago, they fired more than 1400 employees in a single day. To save this Ola which is sinking, there is an idea of bringing an IPO. We will bring the money collected from the IPO, we will give it to the investor and if we get rid of our PIN, then Ola Don’t invest money in IPO even by mistake.
Business Lessons What can we learn ? Even a well ends up while eating. In business, think that you don’t earn money now, you spend now, you will earn later. The contribution of the team is always very high in taking your company forward. Never misbehave with the team, nor misbehave with your vendors, nor loot the customers, they are looting all three, that’s why this company has faltered.
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