Ola Cabs Essentials

Here in this research report, you will get:
- Ola IPO Review and Analysis
- Ola Pre IPO Details

- Ola Upcoming IPO Details
- Expected Ola Upcoming IPO Date
- Expected Price Band
- Management Details (Ownership)
- Business Model
- Key Ratios
- Peer Comparisons
- Financial reports (Profit and Loss Statements, Balance Sheets, Results, 
Growth, Valuations, Funding Rounds)

- Latest News (Articles and Videos)
- Upcoming and Past Events Details
- Rating and recommendations for the Company's shares (Whether to Buy/Sell/Hold)

- Ola Cab Share Price (Latest in Pre IPO Market)


Discover and get a complete analysis on Ola Cabs Ani Technologies Private Limited  - Management, Business Model, Financials, Growth, Valuations, Funding Rounds, News and get the latest updates on Ola Cab Share Price.

ISIN

U72900KA2010PTC086596

Face Value

₹10.00

Total Share

30,15,982

Total Income

₹1,168.16 Cr

Profit After Tax

-₹1,116.61 Cr

EPS

-₹502.00

P/E

-45.09

P/B

2.08

Market Capitalisation

₹6,826.68 Cr

Enterprise Value

₹7,183.53 Cr

Book Value

₹10,860.81

Intrinsic Value

₹23,819.00

Earnings Yield

-2.22 %

Sector

Consumer Discretionary

Sub-sector

Tour & Travel Services

Category

Unicorn

Cashflow - Operations

-₹559.55 Cr

Cashflow - Financing

-₹319.11 Cr

Ola Cabs Growth

Compounded Sales Growth

  • -63.08%

    1 Year

  • -4.42%

    4 Year

  • 57.20%

    6 Year

Pro Only

Compounded Profit Growth

  • 49.43%

    1 Year

  • 30.90%

    4 Year

  • -5.80%

    6 Year

Pro Only

Return On Equity

  • -34.09%

    2021

  • -79.51%

    2018

  • -77.08%

    2016

Pro Only

About Ola Cabs

  • ANI Technologies Private Limited (referred to as "OLA") together with its subsidiaries (collectively referred to as the "Group") is a leading technology service provider in the emerging cab-hailing market in India, established with the mission of providing mobility to a billion Indians.
  • ANI is one of the leading companies which provides internet and mobile technology platforms for cab-hailing by commuters.
  • Ola is one of the world’s largest ride-hailing companies, serving 250+ cities across India, Australia, New Zealand, and the U.K. Ola offers a wide range of ride-sharing options through taxis, bikes, and Auto. The Ola app connects clients to drivers and a variety of vehicles, including motorcycles, auto-rickshaws, metered taxis, and cabs, allowing hundreds of millions of customers and over 1.5 million driver-partners to enjoy convenience and transparency.
  • OLA earns the majority of its revenue as commission income & convenience fees which it charges from the drivers who onboard on the OLA platform. In FY21, 86.5% of its revenues were recorded as commission income & convenience fees.
  • In FY21, over 1.5 mn drivers were registered on the OLA platform  
  • OLA has its R&D centers located in the United Kingdom (U.K.) The portfolio is supported by technical and engineering teams with product application and development expertise. Ola Electric announces an R&D facility in the U.K., to invest $100 million in the next five years, especially in EVs.
  • In the ride-hailing and taxi segment, user penetration is 7.3% in FY22 and is expected to reach 7.5% in FY27
  • Ola was founded in Dec 2010 by Bhavish Aggarwal and Ankit Bhati with a mission to build mobility for a billion people.
  • The Group operates under the brand name "OLA". The Holding Company is a private limited company incorporated and domiciled in India and has its registered office in Bengaluru, Karnataka, India.

  • Ola Cabs IPO Details

  • Ola Cabs had announced plans to go public by early 2022 but has delayed its plan. According to OLA CEO Bhavish Aggarwal, The IPO could hit the market later this year or early next year. 

  • Ola Cabs Merger & Acquisition

Merger

Birds Eye System Private Limited:- Birds Eye Systems Pvt. Ltd. develops intelligent traffic monitoring solutions. The Company's products enable users to see real-time traffic conditions via the web or mobile device. 

Acquisition

  • Pisces eServices Private Limited ("Food Panda"):- Foodpanda provides online delivery services. The Company offers an online service for the delivery of food items from a variety of restaurants.
  • Ridlr:- Ridlr is a public transport ticketing and commuting app that’s apt for daily intra-city travel needs.

Investments

Vogo Automotive Private Limited (Vogo):- The Group has a 14.29% interest in Vogo Automotive Private Limited (Vogo), which is engaged in the business of plying vehicles on hire and self-drive models.

  • Ola Cabs Subsidiaries

ANI Technologies Private Limited has 6 subsidiaries in India and outside India
  • OLA Fleet Technologies Private Limited (OFT)
  • Pisces eServices Private Limited ("Food Panda")
  • OLA Financial Services Private Limited (OFS) (Formerly known as Zipcash Card Services Private Limited)
  • OLA Electric Mobility Private Limited (OEM)
  • OLA Skilling Private Limited (OS)
  • OLA Singapore Pte. Ltd. (OLA Singapore)

Ola Cabs Business Model

  • OLA Fleet Technologies Private Limited:- OFT is engaged in the business of providing cars Primarily on operating leases.
  • Pisces eServices Private Limited ("Food Panda"):- Food Panda is an aggregator of restaurants and customers on an e-commerce platform and also provides other related services in India.  
  • OLA Financial Services Private Limited:- OFS has been authorized by the Reserve Bank of India for issuing and operating a semi-closed prepaid payment system under the Payment & Settlement Systems Act, 2007. OFS is providing a technology platform that ensures cashless, hassle-free, safe, and secure payments.
  • OLA Electric Mobility Private Limited:- OEM is engaged in the business of providing services across the Electric vehicle value chain by building Infrastructure for facilitating the Electric Vehicles ecosystem and is also involved in providing a platform, technology services, and/ or another mechanism through any technology, In the physical and/or electronic form, to facilitate transactions whether by and between businesses, individual consumers or by and between businesses and consumers.
  • OLA Skilling Private Limited:- OS is engaged in the business with focus areas that will span the entire driver training value chain which will help to inculcate overall value development in drivers. It helps to create the training infrastructure, mobilize drivers, create and deliver training content and programs, educate drivers
  • OLA Singapore Pte. Ltd.:- OLA Singapore, is a wholly-owned subsidiary of the Company. OLA Singapore is formed in the nature of a holding company that under its subsidiaries provides cab services in Singapore.   
  • Ola Cabs Revenue Segmentation

  • Mobility
  • Leasing
  • Wallet
  • Food
  • Other
  • Ola Cabs Product & Services

OLA provides the following services:-
  • Ola Drive:-The service caters to the car rental demand of the customer by providing vehicles on a rental basis. The company provides pickup facilities, insurance covers, and roadside assistance, among others.
  • Ola Fleet:- Ola fleet consists of numerous ride-hailing options, ranging from bikes, cars, and 3-wheelers. The ride-hailing facilities provide travel options for both intra-city and inter-city.
  • OLA Money:- OLA has its own mobile wallet – OLA Money, that allows the deduction of ride charges directly from the OLA Money account on availing of OLA services.
  • OLA Foods:- Through OLA Foods, OLA caters to the food delivery market.  
  • Ola Cabs Assets


Assets (FY21)Amount (In Rs. Crores)
Cash & Short Term Investments750.0
Current Investments1481.0
Property, Plant & Equipment386.0
Goodwill306.0
Other Intangible Assets545.0
Long Term Investments357.0
  • Ola Cabs Industry Overview

Industry Statistics

Ride Hailing:- 

In India, 57.0% of ride-hailing users prefer ride-hailing over their own vehicle; this same figure is 29.0% in the United States and 32.0% in Germany. 

Overview:-

  • The ride-hailing business model revolves around creating a two-sided market that connects the end user with the service provider over a technology-enabled platform. Ride Hailing, on one hand, facilitates a customer to book a cab at his / her own convenience, and on the other hand, it provides a source of earnings to drivers of private 4-wheelers (4Ws).
  • Ride-Hailing services rely on smartphone apps to connect willing passengers with drivers who provide rides (for a fee) in their private vehicles.
  • Transportation Network Companies (TNCs) design and operate these online platforms. Most TNCs function as digital marketplaces linking self-employed drivers with customers, while collecting a fee for making the connection.


Impact of Covid-19:-

  • The COVID-19 pandemic had a negative impact on all ride-hailing providers because lockdowns and social distancing norms limited people’s movement.
  • During April and May 2020, OLA’s revenue declined by almost 95.0%.
  • Deloitte study has shown that more than 70.0% of customers wish to limit their usage of ride-hailing services post-COVID outbreak


Post Covid-19

With India’s easing of lockdowns and vaccination drive in 2021, the demand for cabs surged because of revenge travel, the opening of offices, and reduced use of public transit.

  • Ride-hailing players explored new business partnerships with companies in eCommerce and food delivery services to overcome the pandemic’s impact.
  • Ola Cabs entered the used car market with Ola Cars, offering try-and-buy services from home, equated monthly installment (EMI) options, and a year’s warranty.
  • Prakriti E-mobility partnered with the Delhi government to transport COVID-19 patients to and from hospitals. It launched Jeevan Seva during the COVID-19 pandemic to help people.
  • Passengers’ mindsets have shifted to maintain social distancing, resulting in the underutilization of public transit and an increased preference for private transportation.
  • Car interiors and body designs will undergo changes to reduce the chances of infection.
  • In March 2022, Panasonic and ride-hailing service grab launched anti-virus mobility cars.
  • Ola announced a partnership with Marico, one of India's leading consumer products companies. Marico's Travel Protect from Ola's new 'Protect' surface disinfection sprays will be provided to its driver partners, and will be used to clean widely used areas such as seats, interior panels, handles, and other vehicle surfaces before each trip.


Market Size:- 

  • Frost & Sullivan forecasts taxi Gross merchandise value (GMV) to be valued at $3,132.5 million (mn) in 2021.

Key Drivers:

  • Door-to-door service:- Ride-hailing services enable passengers to hail a vehicle using online platforms and provide door-to-door service to their customers owing to which is one of the most convenient means of transportation. Ride Hailing business models also discourage private car ownership and provide an additional source of income for drivers of private vehicles. Ride-hailing business reduces the cost of owning a vehicle and at the same time ensures convenience to customers. The inclusion of options for hassle-free online payment also increases its adoption by customers.
  • Safe Ride:- While hailing a ride, information about the driver and the passenger is exchanged which makes ride-hailing services much safer than traditional taxi services.
  • Real-Time Feedback:- A significant rise in the preference for on-demand services such as taxis, passenger vehicles, and charter vehicles, which provide tracking of vehicles, real-time feedback, and rating for service experience provided to the end customers has encouraged the consumers to opt for ride-hailing services. 
  • Surge in traffic congestion in Indian cities:- According to the Press Trust of India, in 2020, Bengaluru drivers spent an average of 71.0% extra travel time caught in traffic. The cost of congestion is estimated to be Rs. 1.47 lakh crore annually in Delhi, Mumbai, Kolkata, and Bangalore.  
  • Lack of Parking Space:- Private vehicle use has significant implications on land requirements for parking: in Delhi, for example, parking accounts for 8–10% of the available land pool. 
  • Total Cost of Ownership (TCO):- For the Battery Electric Vehicle (BEV), the purchase and financing costs add up to Rs. 14.5 Lakh and Rs. 8.9 Lakh, respectively. In contrast, for conventional fuel vehicles, the acquisition costs range between Rs. 5.8 Lakh and Rs. 7.6 Lakh.


Key Trends:-

  • Adoption of Electric Vehicles (EV):- Commitment towards Green House Gas reduction, huge dependency on imported crude oil, high urbanisation, and growing population are the key drivers that could propel the transition from conventional mobility to electric mobility.
  • India has a total of 13,34,385 Electric Vehicles and 27,81,69,631 non-Electric Vehicles in use, which are 0.4% and 99.6% of the total vehicles in India
  • Top 5 states with the maximum number of electric vehicles in India


StateTotal Electric VehiclesTotal Non-Electric Vehicles% of Electric Vehicle
Uttar Pradesh

3,37,180

4,00,92,490
25.2
Delhi

1,56,393

76,85,600
11.7%
 Karnataka   
1,20,532
2,68,70,303
9.0%
Maharashtra1,16,6463,10,58,9908.7%
Bihar83,3351,04,07,0786.2%


Consolidation and Acquisitions:- 

  • In 2019, Mahindra & Mahindra acquired 55.0% of the equity share capital of Meru for Rs. 201.5 Cr, which the company will pay in several tranches.
  • In 2021, Mahindra & Mahindra increased its equity shareholding in its subsidiary, Meru Cabs, from 43.2% to 100.0%
  • Ola Cabs and Uber sold their food delivery divisions to focus on their core competencies.


Connected and Autonomous Vehicles:-

  • Along with remarkable benefits, including increased personal safety, mobility for non-drivers, timesaving for drivers, decreased environmental harm, and reduced transportation costs, connected and autonomous vehicles are expected to introduce significant changes in value chains, profit pools, and required capabilities.


Competitive Landscape:

  • Key examples of the same are Ola, Uber, Lyft, Didi, Get, etc. 

Future Prospects

  • Frost & Sullivan forecasts taxi Gross merchandise value (GMV) to grow from $3,132.5 million (mn) in 2021 to $19,961.4 mn by 2027 at a CAGR of 36.2%.
  • India’s bike-hailing services will grow at a CAGR of 14.0% from 0.4 mn in 2021 to more than 0.8 mn bikes by 2027. The primary market driver is the demand for first- and last-mile connectivity in Tier I and Tier II cities.
  • TNC trips and gross booking values in India increased rapidly between 2012 and 2017. The average fare for a TNC trip was approximately $3.6 in 2020 and will increase to $5.4 by 2027.

Government Initiatives

  • The Indian government’s Motor Vehicle Aggregators guidelines introduced a new set of rules into the largely unregulated market. The new regulation could limit operator revenues but could also bring more drivers to the platform, balancing out the dip in revenues.

Ola Cabs Awards & Achievements

  • Disruptor of the Year” at CNBC-TV18’s Asia Business Leader Awards 2021
  • Ola wins the best startup of the year 2015

Ola Cabs Strengths

  • OLA earns 78.5% of the revenue from its core operations of mobility & car leasing
  • OLA has strong brand recognition in the cab-hailing market  
  • OLA has the backing of some renowned investors like Tiger Global,  Apoletto Limited, Massachusetts Institute of Technology, and Accel Growth III Holdings (Mauritius) Limited 
  • OLA has a technology-driven business, which can be scaled up without spending on raw materials or any fixed asset

Ola Cabs Shortcomings

  • Company is consistently making losses since 2015
  • Company has over-diversified its business across geographies like Singapore, New Zealand, Australia, the USA, and other countries
  • Despite being a loss-making company, the company has a history of growing inorganically i.e. by acquiring other companies to propel its growth  

Ola Cabs Opportunities

  • Growth in the bike taxi market
  • Growing internet users in the rural market
  • Increasing awareness of electric mobility

Ola Cabs Threats

  • Rise in the number of regional cab-hailing players like Jeo Cabs, Jiyo Cabs, and CEO Cabs
  • Work from the home norm has reduced the traveling of office commuters
Ola Cabs Rating

  • RECOMMENDATION

    Sell

  • Ola Cabs Detail Info

Industry Statistics

PRIVATE LIMITED

Registered In

India

last Updated

04/11/2022

Registered Date

03/12/2010

Planify Ticker

Ola