OLA

CRITICAL SITUATION IN AN ORGANISATION & IT'S MANAGERIAL SOLUTION

C. BALASUBRAMANIAN
RA1952001020039
MBA - "A"

1. CRITICAL SITUATION IN AN ORGANIZATION AND IT´S MANAGERIAL SOLUTION NAME: C. Balasubramanian REGISTER NO.: RA19520010200 39 SUBJECT: Managerial skills COURSE & SECTION: MBA – “A”

2. INTRODUCTION Ola Cabs (stylised as OLΛ ), is an Indian transportation network company (TNC) offering services that include peer-to-peer ridesharing , ride service hailing, taxi and food delivery . The company is based in Bengaluru , Karnataka , India and was developed by ANI Technologies Pvt. Ltd. As of May 2019, Ola was valued at about $6.2 billion. A variety of venture capitalists including Softbank have large stakes in the company. Ola Cabs was founded on 3 December 2010 as an online cab aggregator in Mumbai , and is now based in Bangalore . As of 2018, the company has expanded to a network of more than 10,00,000 vehicles across 169 cities. In November 2014, Ola diversified to incorporate auto rickshaws on a trial basis in Bengaluru . After the trial phase, Ola Auto expanded to other cities like Delhi , Pune , Chennai and Hyderabad starting in December 2014.

3. crisis Ola Cabs technology came under criticism regarding the security of its mobile app. The API calls could be replayed to top up its wallet. In August 2016, a privacy breach occurred when customers' details such as names, phone numbers and addresses, in Bengaluru , were received as SMS messages by an individual in Chennai . Although these unanticipated messages were reported to Ola, the company ignored them, even under the threat of being reported to the TRAI . The refund policy of Ola Cabs has been criticised because of charging errors caused by technical glitches in their system. As of December 2018, there were 190 negative reviews on Ola Cabs posted on TripAdvisor by dissatisfied customers. Surge pricing has been an issue with customers, as Ola is said to initially eliminate competition by lowering prices, and then hiking up prices through what it calls surge pricing . The fact that the same ride can cost different amounts depending on the time, day and the profiles, history and rating of the driver as well as passenger has also incurred much customer wrath. The issue was reportedly fixed three weeks later after receiving considerable media coverage and social media attention.

4. criticism Ola from January 2017 has been highly criticised for continuously dropping the driver incentives which in turn is affecting driver-partner's monthly income. Most nowadays fail to cope up with their monthly EMIs and other dues. Daily income of cab drivers is now equal to auto drivers running in the city after deducting all dues. Charges comprise: Base fare (fixed amount) Distance fare (charged per kilometre) Ride time fare (charged per time taken to travel) Peak pricing (direct ratio depending on demand for cabs) GST (5%) Toll charges (toll collection if crossing a toll junction)

5. solution Ola and Uber have also been criticised due to their practice of baiting drivers and passengers, initially with discounts and bonuses, and then hiking up fares without passing the proceeds to drivers. Their practice of taking large signing up amounts from drivers and not considering them employees has also been criticised. Both companies contractually treat drivers as " contractors " thus excusing themselves from any legal obligations. In an interview, Pranay Jivrajka, a co-founder of OLA, claimed that the company will be creating 50 lakh new "opportunities" in the next five years. He was, however, careful not use the word jobs for these opportunities. He added that it was not just about jobs but creating an ecosystem.

6. reference Technologies, Olacabs – ANI Mandal, Suchayan Russell, Jon