Taxi-hailing apps, Ola and Uber are still head to head against one another in 2016, doing everything they can to one up each other and acquire customers and market share. Just recently, we witnessed a slew of announcements from both companies. Ola launched it’s Micro facility, pricing it cheaper than its most affordable ‘Mini’ segment at about Rs 6 per km. This was their response to UberGo, Uber’s most affordable segment at Rs 5 per km (in many cities).
It’s been almost a month since its launch and Ola claims that its Micro is on track to match the number of total rides of Uber in India within a month. In fact, the company also said that Micro already sees 50% of all of Uber’s daily bookings in the country.
But here is where things get curious. Recently, Uber’s Asia president Mr. Eric Alexander, in an interview, said the company is on the verge of overtaking Ola in India. He said, “”In January last year, we were at 5% market share. Now, we are right at the edge of 50%. Within next 30 days, we would beat them (Ola). We will surpass them very, very shortly,” he had said.
Ola currently claims it holds 75% of the Indian app-based taxi-hailing market, with over 3.5 lakh driver partners on its platform across the country.
But the big question is – how does one calculate their market share? Thankfully, we found a Quora answer that is mildly satisfying. There are a couple of ways to find out:
1. Total Market Share: Each company does their own research and identify the total market size. Let’s say they come up with a number -$100 billion annually. Now, these companies will look at the total business they did in that year and claim to own that amount of market share.
2. Online market share: They follow similar method for online market share. Total business conducted online compared with the revenues they have generated.
So it all comes down to how you assess it. Who do you think is winning the taxi wars?