li:before{content:"■ "}ul.lst-kix_list_1-0{list-style-type:none}.lst-kix_list_1-7 > li:before{content:"■ "}.lst-kix_list_1-5 > li:before{content:"■ "}.lst-kix_list_1-6 > li:before{content BrandZ is the world's largest brand equity database. Created in 1998 and continually updated. BrandZ is an invaluable resource, containing data on brands gathered from interviews with over 150,000 people every year in up to 400 studies around the world"> brandZ | Report -
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DIGITAL | Ola & Uber: Ride-hailing brands compete for loyalty

Consumers stick with their preferred brand

 

As e-commerce rapidly increases in India, local and multinational brands are competing for customer loyalty. To gain insight into consumer attitudes, Kantar IMRB polled its 30,000-member e-commerce panel about a dynamic e-commerce segment—ride-hailing services.

 

Uber and Ola, its Indian equivalent, own 99 percent of India’s ride-hailing market, according to Kantar IMRB, which estimates that 6.5 million people use ride-hailing apps and spend around 5.2 billion INR ($80.7 million) annually. Ola is the larger operation, present in 102 cities compared with in 26 cities for Uber. Around 60 percent of cab-hailing app users select Uber, however.

 

 

Uber surpasses Ola in customer loyalty, which is an important factor, since consumers tend to stick with their preferred car-hailing brand, and only 10 percent switch from one brand to another. In part to increase loyalty, Ola introduced Ola Select, a subscription service that promises lower prices and greater convenience.

 

For now, customers prefer that they—and their traveling companions—occupy their car exclusively. Only around a fifth of consumers said they would choose to share their ride. This pattern seems to be changing, however. With more consumers gaining internet access, the ride-hailing brands are adding more affordable ride-sharing options, such as Ola Share Pass and Uber Pool. The report concludes with these recommendations for ride-hailing brands:

 

  • Keep existing customer happy, since they express strong preference for their chose brand;
  • Continue to innovate, addressing the pain points of existing customers, like peak pricing; and
  • Attract new customers with more economical options.

 

 

 

 

 

 

 

 

 

 

 

 

 

Put this heading inside the chart: Customer Preference

 

Ride-hailing customers are brand-loyal

Ride-hailing consumers tend to stick with their preferred brand, and only 10 percent switch from one brand to another.