India’s leading taxi aggregator app Ola revenues jumped an eightfold at Rs 421 crore comparison to last fiscal year, according to the most recent disclosures filed with the ministry of corporate affairs earlier this month.
However, Bengaluru-based company losses has also increased Rs 796 crore due to heavy advertisement to maintain its lead over rivals like Uber in the fast-growing taxi app business.
ANI Technologies, which owns Ola, was competing with two major rivals – Uber as well as TaxiForSure in 2015 spent an estimated Rs 920 crore on fleet operation costs.
Ola’s bulk of the revenue of Rs 380 crore as coming from the car rental service while the company earned Rs 2.26 crore through commission on taxi services.
Company’s next target Advertisement and sales promotion expense at Rs 100 crore. Taxi For Sure, which was owned by Serendipity Infolabs, was acquired by Ola in February of 2015 in a primarily stock deal worth an estimated $200 million.
The taxi aggregator commands more than 65% market share according to industry estimates. Ola which is backed by Japan’s SoftBank has moved aggressively to establish its market lead over the San Francisco based Uber. Ola is operational in more than 100 cities.
The company now offers a bus service called Ola Shuttle, auto rickshaw hire, carpooling, corporate car hire and five categories of on-demand cab service from low-cost Micro to luxury cars like BMW’s.
The company is backed by China’s largest taxi app company Didi Chuxing, Matrix Partners, Tiger Global, and DST Global.