Ola Cabs Rebrands to Ola Consumer: Experts Decode the Move and Sound Caution 2024 updates
Ola Cabs Rebrands to Ola Consumer: Ola Cabs, the well-known ride-hailing service, has officially rebranded itself as Ola Consumer, following in the footsteps of tech giants like Meta and Alphabet. This strategic shift, announced by CEO and founder Bhavish Aggarwal during Ola Electric’s annual event ‘Sankalp,’ reflects the company’s ambition to streamline its various ventures under a unified umbrella while expanding its offerings beyond transportation services.
The Rebranding Rationale
Ola’s rebranding to Ola Consumer is a strategic move to encompass a broad spectrum of services, including Ola Electric, Ola Share, AI startup Krutrim, battery cell production, quick commerce, Ola Coin, and Ola Pay, amongst others. This marks a significant evolution from its origins as a ride-hailing platform, highlighting its intentions to ascend the value chain and expand into new market segments.
Aggarwal explained that the new entity aims to provide a wide range of consumer services to enhance accessibility, affordability, and efficiency in e-commerce. The company believes that the previous brand name, Ola Cabs, was limiting its potential for future growth by confining it to a single category.
Expert Opinions on the Rebranding
Industry experts have welcomed the rebranding but also cautioned against potential risks. Samit Sinha, Founder and Managing Partner of Alchemist Brand Consulting, noted that the change should not be disruptive for consumers, as most people refer to the company simply as Ola, not Ola Cabs. He emphasizes that maintaining the core goodwill built over the years in the ride-hailing business is crucial for the success of the new ventures.
Lloyd Mathias, an angel investor and business strategist, warned that if any of the sub-businesses fail to take off, it could negatively impact the larger group objective. “Ola is looking at going up the value chain,” he said, while stressing that the company must remain vigilant in preserving the established reputation of its core ride-hailing service, which has been a success for over 12 years.
Brand guru Jagdeep Kapoor, Founder Chairman and MD of Samsika Marketing Consultants, highlighted that the rebranding exercise is natural for a company expanding its core product portfolio. He pointed out that similar moves have been made by other tech companies like Apple, which rebranded from Apple Computer Inc. to Apple Inc. after the success of the iPod and iPhone. Kapoor suggests that as long as Ola Cabs retains its core goodwill, it will positively influence the rest of the Ola Consumer businesses.
The Quick Commerce Challenge
As part of its rebranding strategy, Ola Consumer plans to venture into the quick commerce market, which is highly competitive with players like Zepto, Blinkit, Swiggy Instamart, Big Basket Now, and Flipkart Minutes. Ola Consumer’s entry into this space includes the launch of automated dark stores, touted as 90% cheaper than existing dark store operators, which will also be available on the ONDC network.
Aggarwal stated that the company has launched a 100% automated dark store to bolster its quick commerce business, providing efficient and automated warehousing solutions. This move aligns with Ola’s partnership with major brands like ITC and Marico for effective warehousing operations.
However, experts caution that the quick commerce market in India, projected to be worth $40 billion by 2030, presents significant challenges, including supply chain vulnerabilities and logistical complexities. Mathias emphasized the importance of maintaining high operational standards, especially in light of issues faced by other major quick commerce platforms regarding hygiene and safety practices.
