Providing transportation services for a billion people seems like a daunting task, yet in the offices of Ola Cabs, it is a routine workday. One of the world’s largest ride-hailing companies has earned its reputation as the fastest-growing start-up in India.

Ola Cabs has been at the forefront of developing technology that enables mobility solutions by connecting customers to drivers for over a decade. The company is not limited to the standard model. It allows clients to choose the mode of travel through their app, offering shuttle buses, bikes, auto-rickshaws, or any other vehicle for navigating the congested Indian streets.

The vision for fast and stress-free transport took root when IT engineer Bhavish Aggarwal (38) decided to overcome the frustrations he experienced when commuting with a local taxi service by streamlining the process with software. Partnering with fellow alumni Ankit Bhati (36), the young entrepreneurs reshaped the mobility of India.

See how the duo developed the local start-up into a corporation with global aspirations.

Partnership of Restless Spirits

While most young IT engineers dream about a job with a tech giant, for Bhavish Aggarwal, the employment in Microsoft Research India was suffocating. The graduate in computer science from the Indian Institute of Technology in Mumbai started a career in 2008 as an intern but quickly advanced in the ranks.

His innovative talent rewarded him with two patents and a few publications for international journals. After two years in Microsoft, at the horror of his mother, Bhavish quit his job, realizing he was wasting his talents and embarked on the journey to fix an old grievance within the taxi industry.

Not owning a car, Bhavish was a frequent user of cabs until a few unpleasant experiences motivated him to find a better solution by using what he knew best – technology. Like all great inventors, Bhavish had the foresight to recognize the business potential in merging a new fancy gadget like the smartphone with a cab booking service.

In the winter of 2010, Bhavish recruited Ankit Bhati, a friend from their student days at the Indian Institute of Technology in Mumbai, and co-founded Ola Cabs in December that same year.

Ankit was another restless spirit. Being two years younger than Bhavish, he had even less professional experience, preferring to code from his apartment and frequently change jobs. When he accepted the offer, Ankit didn’t expect to become a role model for India’s youth. Neither the uphill battle to develop their company, from a small operation to a corporation presently operating in 250 cities and indirectly employs 1.5 million driver-partners on their platform.

Starting the New “Taxi” Revolution

The founders were aware that an idea is just a spark to ignite a venture, a lot of hard work was needed to keep the flame alive. As a start-up without financial backing in their first year, Bhavish and Ankit did a lot of the leg work.

Surprisingly for two tech-savvy minds, the initial process was rudimentary. When a client reserved a taxi on Ola’s website, Ankit had to call drivers with instructions about the pickup.

Extended work hours were the norm. Technical issues tested Ankits' coding skills with marathon sessions lasting up to 48 hours. But it was worth it, as it was all for making their dreams into a reality.

Quality of service is the backbone of a brand reputation. The duo worked relentlessly convincing uncooperative partner- drivers that they need to take the customers to the ideal location, not what’s convenient for drivers. Frequently Bhavish borrowed vehicles to drive customers if irresponsible cabbies forgot to pick up a client.

The Rise of Ola Cabs

Their gruelling work ethic started to pay off with satisfied clientele that caught the interest of venture capitalists. In 2011 a wave of investments reinvigorated the start-up, including $500K angel funding from Snapdeal founder Kunal Bahl, plus a couple of fat cheques from Matrix Partners and Tiger Global, the second one a generous $5 million.

The capital enabled the further development of the business infrastructure and relocation of the base of operation from Mumbai to Bangalore. The move brought in a shift in strategy. Sensing the emerging trend of the gig economy, Ola Cabs launched its mobile app and started expanding its business model.

Taxis were no longer the primary focus. In 2014, private vehicles were allowed on the app. Validation for the decision came the same year when over 200,000 drivers signed up to be part of the Ola Cabs network, and the app registered more than 150,000 bookings every day. The impressive numbers created even more hype about Ola Cabs and fueled the status of a billion-dollar entity.

Having experienced the struggles of a small business didn’t make Bhavish and Ankit more sympathetic to other start-ups. In 2015, the company cashed out $200 million to buy rival TaxiForSure, assimilate its technology, and then close the firm a year later.

Ola Cabs, Bikes, and More

Stagnation is the most crippling disease for a business, something the dynamic duo avoided by diversifying their portfolio with new companies and related services. Ola Cabs introduced a bike taxi service on its platform in 2016, building on the experience with the 2014 auto-rickshaw service it started on a trial basis.

The following year, realizing the potential to connect groceries and cooked food with their extended network of drivers, they entered the food delivery market by acquiring Foodpanda, another emerging local.

Investors took notice of the success, and another financial injection arrived in 2016 from the Chinese conglomerate Tencent. They contributed $500 million to the billion-dollar pile that Ola cab accumulated for the year from different investors, including $250 million from Softbank. The funds were used to eliminate a few competitors and expand the portfolio with a new bicycle-sharing company Ola Pedal, founded in 2017, focusing on the last mile concept. In the same year, the two-wheel program was upgraded with Ola Electric, a manufacturer of electric scooters, effectively joining the global race for the future of carbon-free mobility.

Assuming the Mantle of Market Leader

The tide of success didn’t die down, and it picked up more steam in 2018, when Ola Cabs went international, offering its services in Australia and New Zealand. The following step was investing in scooter rent start-up Vogo and public transport and ticketing app Ridlr.

In 2020, Ola Cabs set up shop in London, effectively entering the UK market and challenging industry giants like Uber. No doubt the wind in their backs was the new investment from Softbank of $250 million.

Since its founding in 2010, the company has received over $4.3 billion in funding from investors. The capital helped expand the quality and scope of services.

Still, success breeds success, and the appetites are still growing. Presently the company controls about 65% of India’s ride-sharing market. If the recent decision for an IPO of Ola Cabs, planned for 2022, is any indicator, the company can be a big player not just in India but globally.

Bhavish expects that they will be able to raise $1 to $2 billion through an initial public offering. Money that will fuel the vision that started a small local business and is now redefining an industry.

The IPO is the beginning of the next chapter in the story of two tech graduates deciding to book their ride for a journey paving the way for the future of urban mobility.