The case study of Ola Cabs focuses on the consolidation strategy. Ola had been acquiring companies over diversified fields to strengthen its position in the taxi rental market. Ola acquired Taxi For Sure (TFS), one of its biggest competitors, on March 1st, 2015 for an amount of $200 million, the biggest ever acquisition in the car rental industry. Following suit, in November 2015, Ola acquired Geotag, a trip planning company, for an undisclosed amount. Again, on March 21st2016, Ola acquired Qarth a mobile payment start-up company. It considers a set of decisions to acquire Taxi-For-Sure in 2015 and closing down the same in 2016. It introduces the class to the trends in e-transportation sector in India and how the companies are poised in the industry. This may be first acquisition deal for Ola but certainly is the biggest acquisition and pioneer of consolidation strategy in the sector so far. Realising the challenges ahead, Ola went on an acquisition spree to turn the wheels in its favor against the giant Uber.
Pre-requisite Conceptual Understanding (PCU)/ before the Classroom Discussion
The participants should be aware of the competitive strategies adopted by firms for expansion of the business. They must have an understanding of how to construct SWOT matrix (why only SWOT, other competition analytic framework can be presented) and should be prepared with it for Ola. For a better analysis of the case, students could be asked to visit the websites of Ola to analyze how the firms are positioned in terms of customer satisfaction and reviews, user-friendliness, the range of services available, etc.
Case Positioning and Setting
This case study can be used in the MBA program for discussing: