Two by Two
How will Ola and Uber avoid "death by a thousand cuts"?
Oct 17, 2024
In this discussion, Professor Srinivasan R, a strategy expert from IIM Bangalore, joins Nilesh Sangoi, former CEO of Meru Cabs, and Pradeep Puranam from Yulu, to unpack the ride-hailing duopoly in India. They delve into the emerging threats from EV fleets and innovative local competitors. The guests explore new business models, including subscription services and soft bidding, as well as the challenges that Ola and Uber face in maintaining their dominance amid rising competition and changing market dynamics.
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Quick takeaways
- Ola and Uber's dominant position in India's ride-sharing market is threatened by emerging competitors leveraging innovative business models and technology.
- The transition to electric vehicle fleets presents significant structural advantages for new entrants, challenging Ola and Uber's traditional operational strategies.
Deep dives
The Rise of a Duopoly in Ride-Sharing
Ola and Uber have established a significant duopoly in the Indian ride-sharing market, controlling approximately 70% of the sector. This dominance has been achieved after extensive investments, creating robust network effects that present substantial barriers for new competitors. However, current conditions are evolving as the market experiences structural disruptions that are lowering these entry barriers. Technological advancements and democratized access, such as platforms like GitHub and ONDC, enable local and niche players to enter the market more easily, posing new challenges for these giants.
