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.