App based taxi aggregator Ola on its cheaper cab service Ola Micro @ 6 Rs per km, claims of getting traction more than 50% of total booking of biggest rival Uber. Ola and Uber both have tried to acquire consumer base so far by cash burn, and now are going to draw attention by war of words.

Raghuvesh Sarup, chief marketing officer and head of categories at Ola said “In three weeks, we have put up a category (Ola Micro) which is already 50 per cent of all of Uber’s daily bookings in the country. The rate at which Micro is growing, it will be larger than their entire brand within a month.”

“India is all about execution. As much as all these loose talks and claims you hear from people who don’t really know this market. They think they can do well here but execution speaks for itself and this ten-fold growth that we have achieved shows that we move very quickly,” added Sarup.

On the other hand, Eric Alexander, president of Uber’s Asia business said, the company was on the verge of overtaking Ola in India. “In January last year, we were at five per cent market share. Now, we are right at the edge of 50 per cent. Within next 30 days, we would beat them (Ola). We will surpass them very, very shortly.”

Ola launched Micro, a compact car service this month with an aim to tap price-sensitive market base across seven of India’s largest cities including Bangalore, Delhi and Mumbai. Recently Ola announced the shutdown of its food ordering service – Ola Café and hyper local delivery – Ola Store which were started as pilots in March and July 2015 respectively to focus on its core area of taxi-hailing. Further, it has introduced new categories such as Prime, shuttle bus service and carpooling in a short span.

Ola Micro - Leading Ola in Battle with Rivalry Uber

FS Outlook – In a cost concerned market base, any product launched, keeping the affordability limits of consumers as major focus would definitely have high probability of success. Lower cost service Ola Micro fits the mind-set and need of cost concerned consumers very well and hence getting popularity exponentially. Combined with marketing and customer acquisition strategies, any product / service designed for targeted consumers would become successful.

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