India’s largest cab-hailing service Ola said it will ditch its website and become a mobile-app only platform starting August across its 100 cities of operations, joining the likes ofFLIPKART and Myntra in betting big on mobile commerce.
Ola, run by ANI Technologies Pvt. Ltd, will continue to operate its call centre but only for customer support and assistance, not for orders. Ola said its software update this week enhanced its app, allowing for quick loading on 2G networks and helping users save on data usage.
India’s third-most valuable start-up said it gets as much as 99% of its orders from the mobile app and more than 90% of customers book cabs using the ‘Ride Now’ option instead of ‘Ride Later,’ indicating the consumer shift toward on-demand services.
“With 99% of our bookings coming through our app today, it is clear that our users prefer the seamless app-experience to any other mode of booking,” chief operating officer Pranay Jivrajka said in a statement. “This will allow us to deliver a consistent one-touch booking experience as well as improved ride experience across all aspects such as navigation, payments, safety and feedback. Having said that, Ola Care will continue to be available 24x7 to address customer queries, collect feedback and provide support. The 2G enhancements will also allow users in smaller towns and low network areas to access Ola without compromising on speed and ease of access.”
Indians have been the fastest adopters of mobile shopping.
Ola’s move follows that of fashion retailer Myntra, which became an app-only platform in May. Myntra’s ownerFLIPKART
, too, is planning to become an app-only shopping brand later this year, according to earlier reports in Mint and other publications.
, too, is planning to become an app-only shopping brand later this year, according to earlier reports in Mint and other publications.
Ola is in talks to raise at least $500 million in fresh funds, Mint reported on 21 May. The company raised $400 million from a consortium of investors led by Russian firm DST Global in April. Ola is backed by more than 10 other investors, including SoftBank Corp., Tiger Global Management Llc, Singapore’s sovereign wealth fund GIC Pte. Ltd, Falcon Edge Capital Lp,Steadview Capital Management Llc, Sequoia Capital and Matrix Partners.
Bengaluru-based Ola, which has already raised roughly $800 million over the past year, needs capital to spend on marketing, discounts and expansion into new cities. It also needs to fund its TaxiForSure unit, which it bought in March in a cash and stock deal worth $200 million.
The firm is planning to enter product deliveries and mobile-based navigation technology, tracking similar moves by rival Uber Technologies Inc. in the US, Mint reported on 16 March.
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