Driving Forces: Meet the Minds Behind Ola’s Big Ride

Bhavish Aggarwal and Ankit Bhati’s journey of founding Ola spans from the corridors of Indian Institute of Technology (IIT) Bombay to becoming the co-founders of one of India’s leading ride-hailing companies. 

Bhavish Aggarwal

Bhavish Aggarwal is a prominent figure in India’s entrepreneurial landscape, best known as the co-founder and CEO of Ola Cabs. Born and raised in India, Bhavish pursued his undergraduate studies at IIT Bombay, where he earned a B.Tech degree in Computer Science and Engineering. Before founding Ola, Bhavish worked as an Assistant Researcher at Microsoft Research India. This role followed a stint as a Research Intern at the same organization. In addition to his ventures in transportation, Bhavish founded Krutrim, an artificial intelligence (AI) company, which became India’s first AI unicorn in 2024 with an estimated valuation of $1 billion. He was included in Time magazine’s list of the 100 Most Influential People in 2018 and featured in the TIME100 Climate List in 2023. (Bhavish Aggarwal)

Ankit Bhati

Ankit Bhati, a co-founder of Ola, has played a crucial role in shaping the company’s technological and operational foundation. With an educational background in Mechanical Engineering, he holds both a B.Tech and an M.Tech degree from the prestigious Indian Institute of Technology, Bombay. As the Chief Technology Officer (CTO), he was instrumental in creating the algorithms and backend systems that powered Ola’s seamless ride-hailing experience. After nearly a decade with Ola, Ankit transitioned to a new venture. In 2021, he co-founded Amnic, a company focused on innovative solutions in cloud, DevOps, and product development. (Ankit Bhati)

The Founding Story

The inception of Ola stemmed from Bhavish’s personal experience with unreliable transportation. During a trip from Bengaluru to Bandipur, he faced issues with a rented car, where the driver stopped midway and demanded more money, leaving Bhavish stranded. This incident highlighted the need for a reliable and efficient cab service in India. Motivated by this experience, Bhavish decided to create a solution that would offer dependable transportation services. He collaborated with Ankit, leveraging their combined technical expertise and entrepreneurial spirit. Together, they launched Ola (initially as Olatrips.com) in December 2010, focusing on intercity cab services. Over time, they pivoted to an app-based platform, providing a range of mobility solutions across various cities in India.

The Road Ahead: Mapping the Mobility Market’s Highways and Byways

The mobility services market in India has experienced significant growth over the past decade, driven by rapid urbanization, increasing smartphone penetration, and a growing preference for convenient transportation options. In 2024, the ride-hailing market in India was valued at approximately USD 6.42 billion. Projections indicate that by 2028, this figure will reach USD 7.6 billion, reflecting a compound annual growth rate (CAGR) of around 3.4%. (Statista)

Shared mobility services, encompassing ride-hailing, car-sharing, and bike-sharing, have become integral to India’s transportation landscape. In 2024, the shared mobility market in India generated revenues of USD 96 billion. Forecasts suggest that by 2029, the market will grow to USD 134.3 billion, with a CAGR of 6.95%. (Statista)

The taxi market, a significant segment of mobility services, was estimated at USD 20.61 billion in 2024. It is expected to reach USD 38.9 billion by 2029, growing at a CAGR of 13.55%. (Mordor Intelligence)

Several factors contribute to this robust growth. The rise of digital platforms has made booking rides more accessible and efficient. Additionally, the increasing cost of vehicle ownership, including expenses related to fuel, maintenance, and insurance, has led many consumers to opt for ride-hailing services as a cost-effective alternative. Government initiatives promoting electric vehicles (EVs) and sustainable transportation have further spurred innovation within the mobility sector. Companies are investing in EV fleets and charging infrastructure to align with environmental goals and cater to the eco-conscious consumer base.

Despite the promising outlook, the market faces challenges such as regulatory hurdles, competition among service providers, and the need for continuous technological advancements to enhance user experience and safety. Nonetheless, the mobility services market in India remains dynamic, with ample opportunities for growth and innovation in the coming years.

More Than Just a Ride: What Drives Ola

Mission and Vision

The company’s mission is to build mobility for a billion people, aiming to make transportation more accessible, efficient, and sustainable. Ola envisions a world where every journey is emission-free, contributing to a cleaner and healthier planet for future generations.

Problems They Solve

Ola addresses several critical problems in urban transportation. It offers a reliable alternative to traditional taxi services, which often suffer from inefficiencies and lack of transparency. By providing a platform that connects customers with drivers through a user-friendly mobile application, Ola enhances convenience and trust in the transportation sector. Additionally, Ola contributes to reducing traffic congestion and pollution by promoting shared mobility solutions, thereby supporting environmental sustainability.

Business Model

The company’s business model revolves around a ride-hailing platform that connects passengers with a network of drivers offering various vehicle options, including cabs, auto-rickshaws, and bikes. Ola generates revenue by charging a commission on each ride booked through its platform. This commission varies based on factors such as location and vehicle type. Beyond ride-hailing, Ola has diversified its services to include electric vehicles through Ola Electric, financial services via Ola Money, and food delivery, thereby creating a comprehensive ecosystem that caters to diverse consumer needs.

All Roads Lead to Ola: A Suite of Services for Every Commuter

Ola, has evolved into a comprehensive mobility platform offering a wide array of products and services to cater to diverse transportation and financial needs. Below is an in-depth look at Ola’s offerings:

Ride-Hailing Services

Ola’s core service connects passengers with drivers through a user-friendly mobile application, providing various vehicle options to suit different preferences and budgets. (Ola Cabs)

• Ola Auto: This service allows users to book auto-rickshaws via the app, ensuring transparent fares and reliable rides.
• Ola Cabs: Ola provides a range of cab services, from economical options like Micro and Mini to premium choices such as Prime Sedan and Prime Play. These services cater to various customer preferences and budgets.
• Ola Bike: For quick and affordable commutes, Ola Bike offers motorcycle rides, ideal for navigating through traffic-congested areas.
• Ola Lux: For luxury travel, Ola Lux provides high-end vehicles, including brands like Mercedes and BMW, ensuring a premium experience.
• Ola Rentals: This feature allows users to rent a car on an hourly basis, suitable for city tours, business meetings, or shopping trips, with packages ranging from 1 to 12 hours.
• Ola Outstation: Designed for intercity travel, Ola Outstation offers one-way and round-trip options, providing flexibility and convenience for travelers.
• Ola Maps: Developed as an alternative to existing mapping services, Ola Maps offers real-time navigation and location-based services, aiming to improve accuracy and reliability for users.
• Ola Play: Ola Play is an in-car entertainment platform available in select Prime vehicles. It offers passengers access to music, movies, and live TV during their ride, enhancing the overall travel experience.

Ola Fleet Technologies

Ola Fleet Technologies, a wholly-owned subsidiary, manages Ola’s cab-leasing program. It leases vehicles to drivers who may not have access to financing or prefer not to own a car. Drivers pay a partially refundable security deposit and daily rentals, depending on the city and car model. This initiative helps maintain a consistent supply of vehicles and supports drivers in earning livelihoods without the burden of vehicle ownership. 

Ola Select

Ola Select is a subscription-based program offering benefits such as rides without peak pricing, priority booking, and access to Prime vehicles at Mini fares. Subscribers also enjoy complimentary Wi-Fi and other exclusive perks.

Ola Money

Ola Money is Ola’s digital wallet service, facilitating cashless transactions for rides and other services. Users can recharge their Ola Money balance and use it to pay for rides, mobile recharges, and utility bills, promoting a seamless payment experience.

Ola Financial Services

• Ola Money: Ola’s digital wallet facilitates seamless payments for rides and other services. It also offers micro-insurance and credit-led payment solutions, enhancing financial inclusion.
• Ola Credit: This feature allows users to ride now and pay later, providing a flexible payment option for frequent travelers.

Ola Foods

Ola has ventured into the food industry with Ola Foods, operating a range of owned food brands through India’s largest network of kitchens. This initiative focuses on delivering quality food options to customers, leveraging Ola’s extensive logistics network.

Integration with ONDC

In June 2024, Ola entered the grocery delivery market again, through the government-backed Open Network for Digital Commerce (ONDC). This move aims to leverage ONDC’s platform to provide grocery and food delivery services, marking Ola’s renewed efforts in the quick commerce space. The company has already become the second-largest buyer-side platform for food delivery on ONDC, processing between 15,000 to 20,000 food orders daily and capturing nearly one-third of the demand in significant markets such as Delhi-NCR and Bengaluru. (Business Standard)

Ola Electric

Ola Electric, a subsidiary of Ola, focuses on promoting electric mobility in India. (Ola Electric)

• Ola Electric Scooters: Under its subsidiary Ola Electric, the company has launched electric scooters, including models like S1, S1 Pro, S1 Air, and S1 X. These scooters feature high-speed performance, long-range capabilities, and advanced connectivity options. 
• Electric Motorcycles: Expanding its electric vehicle lineup, Ola introduced electric motorcycles, such as the Roadster X and Roadster Pro, offering enhanced range and features. 

Ola Corporate

Ola Corporate offers enterprise solutions for business travel, providing features like centralized billing, ride policy controls, and detailed reporting. This service aims to streamline corporate transportation needs, ensuring efficiency and cost-effectiveness for organizations.

Safety Features

Ola prioritizes passenger safety through various measures:

• Emergency Button: An in-app feature allowing passengers to alert Ola’s safety response team and share real-time ride information with emergency contacts.
• Real-Time Tracking: Friends and family can track rides in real-time, providing peace of mind to passengers and their loved ones.
• Driver Verification: All driver-partners undergo thorough background checks and training to ensure a safe and reliable service.

App-solutely Brilliant: The Tech Behind the Rides

At the heart of Ola’s operations is its user-friendly mobile application, available on both Android and iOS platforms. The app enables users to book rides, choose vehicle types, track drivers in real-time, and make cashless payments. 

Ola employs advanced algorithms for efficient ride matching and route optimization. These algorithms analyze real-time data to connect passengers with the nearest available drivers, reducing wait times and ensuring timely pickups. Additionally, Ola utilizes machine learning models to predict demand patterns, allowing for dynamic pricing and better resource allocation.

Ola has also ventured into electric mobility through its subsidiary, Ola Electric. The company has established the Ola Futurefactory, touted as the world’s largest two-wheeler factory, which is entirely run by women. This facility focuses on manufacturing electric scooters and aims to produce 10 million units annually. (Ola Electric)

Business Model

Ola operates on a platform-based business model, connecting passengers with drivers through its app. The company generates revenue primarily through commissions charged on each ride. The commission percentage varies based on factors such as location, vehicle type, and ride distance.

In addition to ride commissions, Ola has diversified its revenue streams. The company offers Ola Money, a digital wallet service that facilitates cashless transactions for rides and other services. Ola also provides in-cab advertising opportunities, allowing brands to reach a captive audience during rides.

Ola has expanded its services to include food delivery through Ola Foods and financial services via Ola Financial Services. To maintain a competitive edge, Ola invests heavily in research and development. The company has established the Ola Electric Battery Innovation Center in Bengaluru, focusing on developing advanced battery technologies for electric vehicles.

Driving Kudos: The Impact and Accolades That Fuel Ola

Ola has significantly transformed India’s transportation landscape since its inception in 2010. Ola has enhanced accessibility and convenience for millions of users across the country. In August 2024, Ola Electric made a notable entry into the stock market, raising $655 million through new shares and selling approximately $77 million worth of existing stock. This marked India’s largest initial public offering (IPO) of the year, with shares surging 20% on debut. (Financial Times)

In 2023, the company received the ‘Best Mobility App’ award at the India Digital Awards, highlighting its excellence in digital innovation. (Ola Web) Additionally, Ola’s efforts in promoting electric mobility earned it the ‘Green Mobility Award’ at the 2023 Global Mobility Summit. (OKLibs) By October 2024, Ola Electric accounted for 39% of the total electric two-wheeler sales in India, reflecting a 30% growth compared to the previous year. (Moneycontrol)

Despite its achievements, Ola faced challenges in 2024. In November, India’s top product certification agency initiated an investigation into Ola Electric over service standards and product quality, following 10,000 consumer complaints. Ola Electric reported resolving 99.1% of these issues, attributing most to minor problems like loose parts or software unfamiliarity. (Reuters)

Teamwork Drives Success: Ola’s Winning Alliances

Ola has strategically partnered with various organizations to enhance its services and expand its market presence. In November 2023, Ola Electric announced a collaboration with the Open Network for Digital Commerce (ONDC), a government-backed initiative aimed at democratizing digital commerce in India. As part of this partnership, Ola Electric plans to deploy its electric scooters for logistics and last-mile deliveries across India, leveraging ONDC’s platform to streamline operations and reach a broader customer base. (CNBCTV18)

In January 2021, Ola partnered with Siemens to build its electric vehicle manufacturing facility in Tamil Nadu. This collaboration leverages Siemens’ technology to establish one of the world’s largest scooter manufacturing facilities, adhering to Industry 4.0 standards. The factory was expected to produce 2 million units annually, serving as Ola’s global manufacturing hub. (Ola Cabs)

In March 2019, Hyundai Motor Company and Kia Motors Corporation invested a combined $300 million in Ola to develop unique fleet and mobility solutions, building India-specific electric vehicles and infrastructure, and nurturing opportunities for driver-partners with customized vehicles on the Ola platform. (Ola Cabs)

In September 2016, Ola entered into a strategic partnership with Mahindra & Mahindra to empower 40,000 driver-partners across India by 2018 to provide driver-partners with access to vehicles, financing, insurance, and other benefits, thereby enhancing their entrepreneurial journey. (Hindustan Times)

In April 2018, Ola partnered with Acko General Insurance and ICICI Lombard to offer in-trip insurance to riders. This initiative provides coverage for accidental medical expenses, ambulance transportation, and loss of baggage, ensuring a safer and more secure ride experience for customers. (Wikipedia)

Cash for the Ride: The Dollars Driving Ola’s Journey

Ola has secured substantial funding to fuel its growth and expansion in the mobility sector. As of November 2024, the company has raised a total of $3.84 billion over 25 funding rounds from 144 investors. (Tracxn)

Ola’s first funding came in April 2011 when the company raised $156,000 in an Angel round from investors like Kunal Bahl and Rohit Bansal. In March 2012, Ola raised $3.9 million in its Series A round from Tiger Global Management, marking its first significant institutional investment. 

As Ola grew, so did its funding. In July 2013, the company raised $20 million in Series B funding from Z47 and Tiger Global Management. By October 2014, Ola secured $210 million in Series D funding, led by Tiger Global Management and SoftBank, bringing its valuation to $633 million.

The company’s Series E funding in March 2015 raised $403 million, valuing Ola at $2.4 billion. In September 2015, Ola raised another $500 million in Series F funding, bringing its valuation to $4.8 billion. Key investors included SoftBank, DST Global, and Tiger Global Management.

In October 2017, Ola secured $1.1 billion in Series I funding from SoftBank Vision Fund and Tencent. This round marked a significant milestone in Ola’s funding journey, enabling the company to expand internationally and invest in electric mobility.

Ola’s Series J funding rounds between 2019 and 2022 raised over $657 million, with notable investors including Hyundai, Kia, and Hero Corp. In December 2021, Ola raised $500 million in conventional debt, highlighting its growing financial capabilities. By February 2022, the company achieved a valuation of $6.7 billion after securing $20 million in Series J funding.

Ola has consistently scaled its revenue alongside its funding. In FY 2022-23, the company recorded revenue of $309.2 Million, a significant increase from $225.4 Million in FY 2021-22.

Full Circle: Riding the Idea to Revolutionize Transportation

Mobility services have come a long way, much like the evolution from basic wheels to modern electric scooters. Just as early innovations in transportation reshaped how humans moved, Ola has revolutionized urban mobility by introducing accessible and tech-driven transportation solutions. From offering reliable cab services to pioneering electric mobility, Ola has made commuting smarter, greener, and more efficient.

It connects millions of people to diverse mobility options like cabs, bikes, and auto-rickshaws. With its electric vehicle initiative, Ola Electric, the company is driving sustainability by making electric two-wheelers mainstream and supporting infrastructure like charging stations. Beyond mobility, Ola has ventured into sectors like financial services and grocery delivery, creating an ecosystem that caters to various consumer needs. Their commitment to innovation, customer convenience, and environmental sustainability has positioned them as a leader in the mobility industry.

For aspiring entrepreneurs, Ola’s journey is a lesson in solving real-world problems through technology and adaptability. The company’s ability to evolve with market needs—whether it’s incorporating AI for route optimization or building the world’s largest two-wheeler factory—shows how vision and execution can transform industries.

If you enjoyed our take into Ola’s story, check out other inspiring articles on Venture Kites, where we uncover the journeys of startups shaping our world. Discover how visionaries are building solutions, transforming industries, and driving progress globally.