Ola has raised US$210 mn- that’s crazy money!! Now I am sure Bhavish with all this money will make sure that other people follow his footsteps- never OWN a car!
The fact is that he is not just campaigning for his business, but actually saving money by not owning a car! A quick analysis shows that monthly cost of owning a car is much higher than taking a radio cab for a daily travel of less than 50 kms.
Before jumping to the workings, some basic assumptions are:
Sedan car cost= Rs8 lacs, Loan component =80%, Interest rate=11%, Loan Tenure= 5 years, Car mileage= 13 kms/litre, Fuel price (petrol)= Rs 75/litre and a 22 day working month.

Renting Car Vs. Ola/Uber : India Analysis
Renting Car Vs. Ola/Uber : India Analysis

Now, with Ola (Sedan) at Rs21/km in Mumbai, clearly shows that its better owning a car if you drive >80 kms/day (with driver) or >50 kms/day (without driver).
Owning A Car Vs. Uber/Ola/TFS?
Owning A Car Vs. Uber/Ola/TFS?

And guess what, if you are in Bangalore then you MUST not own a car because Ola offers a Sedan @ Rs13/ km which would mean that owning a car (without driver) would make sense if you are driving more than 100 kms/day.
Pricing of Ola/Uber/TaxiForSure and Meru
Pricing of Ola/Uber/TaxiForSure and Meru

On top of this, armed with such massive funding I am sure that for the next one or two years customers will have a great time with loads of offers/discounts. Some of the insane offers going on currently which make a car owner look like a fool are…

And on top of this, as the drivers get more rides, the economies of scale or efficiency will only bring down the cost of these rides further.
The end of car-ownership has begun!!
Best of luck Ola, Uber, Taxiforsure, Meru..
[About the author : Guest article by Sandeep Reddy. Follow him on twitter @hsrdce.]

12 comments

  • dear sir,
    I own a car honda amaze petrol version. model 2014. only 3000 km driven. can there be any opportunity with you to provide my car on rental basis.
    I would be obliged for a positive feedback from your end.
    regards,
    nitin

  • If you are planning a trip outside chandigarh, you can rely on our well maintained chandigarh taxi and experienced drivers for safe and comfortable journey. Hire taxi in chandigarh from us and embark on the trip to Himachal pradesh,Punjab ,haryana ,Rajasthan and jammu and kashmir, Our expert drivers know these places very well and we assure you that Our service will let you feel local anywhere in north India.
    contact : 9815399663
    visit: http://www.chandigarh-taxi.com/

  • Shree Bala Ji Travels premium professional service makes traveling not simply a journey, but a memorable experience in a luxuriant
    fleet of vehicles. All drivers are equipped with years of realistic experience and are trained in customer service to readily provide assistance.
    Putting your comfort at top priority, drivers take only the fastest route in the shortest possible time to your desired destination.
    To utilize our services, all you need to do is call us on +91 9888 98 9774 or fill the booking form and we will be there at your service.
    For more details:
    Visit : http://www.shreebalajitaxiservicechandigarh.com

  • dear sir,
    I own a car Wagonr ( petrol + CNG ) version. model 2014.Can there be any opportunity with you to provide my car on rental basis.
    I would be obliged for a positive feedback from your end.
    regards,
    Jayesh Patel,
    contact no : +918866417910

  • dear sir,
    I own a car Wagonr ( petrol + CNG ) version. model 2014.Can there be any opportunity with you to provide my car on rental basis.
    I would be obliged for a positive feedback from your end.
    regards,
    Jayesh Patel,
    contact no : +917622922832

  • I have Matuti WagnoR of year 2015, driven only 5000 Km With all India permit. I am looking forward to rent this car on contract basis.

  • Dear Sir,
    I own a car WagonR ( petrol + CNG ) version. model 2016.Can there be any opportunity with you to provide my car on rental basis.
    Awaiting for positive feedback from your end.
    regards,
    Deepak,
    contact no : 9167901805

Subscribe to Newsletter