Backed by Japanese investment firm Softbank, domestic car-hailing major Ola recently said that the company is all set to turn profitable in the next two years. Bhavish Aggarwal, chief executive officer of ANI Technologies Pvt. Ltd, which owns Ola, was speaking at India Internet Day 2017, an event organized by TiE Delhi NCR on Friday.
“Our focus remains to build a robust and an impactful business. We have a clear path to profitability and should be a profitable company in the next two years,” Aggarwal said at the event.
Aggarwal said Ola is working towards building a sustainable business model that balances all prices for both drivers and rides. “We have introduced intercity cab services, corporate bus services so that same set of drivers see a career path with us; the ones who own one car, are able to become fleet owners,” Aggarwal said.
The company, which started way back in 2010, touched a mark of 600 rides a month in December 2011 that later swelled to 35,000 rides per day in September 2012 and has now reached over a million rides. The company’s unprecedented growth has been possible because of its keen focus on solving India-specific problems and innovating solutions for all the stakeholders; consumers and drivers.
“Over the last few years, we have gone deeper into the country and are currently present in 110 odd cities. We have launched plethora of new services and our mission is to build affordable mobility for everyone. From auto rickshaws to bikes to normal cars to premium cars we have everyone covered,” Aggarwal said.
He also added that auto rickshaw is the largest and most profitable segment for them today. “We have 100 per cent market share because there is nobody else who is doing this,” noted Aggarwal.
He also reiterated the World War II and Vietnam War analogy he used last month on Twitter to bring out the contrasting nature of India’s and China’s markets.
“What happened in China with Didi and Uber is like World War II. China already has these large internet giants; they have capital, customers, and support. Foreign invaders are actually at a disadvantage there,” Aggarwal said, referring to rival Uber.
“In India, it’s like the Vietnam War, with invaders bombing us. But we will go in niche areas and despite irrational competition, continue to lead the market,” he added.
In addition to Aggarwal, the event saw other prominent speakers including OLX India’s Amarjit Batra, MakeMyTrip’s Deep Kalra and Flipkart Chief Executive Officer Kalyan Krishnamurthy.
TiE is recognized as a global organization fostering entrepreneurship through mentoring, networking and education. TiE Delhi-NCR is among the largest and most vibrant chapter across the vast TiE network. In the last 15 years, it has continuously taken the lead and hopes to build on its strength to create an increasingly positive ecosystem for the entrepreneurs and investors. BoringBrands, a 360-degrees marketing organization that focuses on changing consumer perception towards brands, was the digital media partner of the event.