Services like Uber, OLA presenting a serious challenge to Auto Industry

Auto industry works based on demand. In other words, the number of people who need a ride, defines the market for you. With services like Uber and Ola the demand is taking a hit. People can book a ride at the comfort of their smartphones. They don’t need their cars anymore. Tourist car agencies are taking a hit as well. The average driver is hesitant about purchasing an automobile. Regardless, it’s a global phenomenon. Every country is witnessing the change. Companies like OLA and Uber are claiming to enrich the industry. Are they really doing so? When it has come to a debate, it faces a certain challenge.

Uber & OLA

In urban centers across the world, there’s a new ride in town. It’s either the Uber or OLA. A growing number of cabbies are getting a steady occupation. Lot of car owners can turn those wheels into money spinners. The essential tool is just a smartphone app. It’s so efficient in building your clientele. Customers can summon a ride in seconds. The astronomical rise of demanded rides is a part of the global auto revolution. Getting from point A to point B is all that matters. It’s all pegged down to speed and availability.

Riding is the new driving

Our changing attitude towards driving is impacting car sales. It’s more about processing power than horse power these days. All that’s said and done, you just need to get from point A to point B. All industries are confronted with changes. People are not taking the traditional local taxis anymore. They are into the global giants like Uber and OLA. Pressure to adapt has never been greater. Even if they try, they can never be sure. Lots of local entities are at risk. Carmakers are facing a new kind of challenge that doesn’t involve resources.

Where there’s threat, there’s opportunity…

Now anyone can be part of the global giants – Uber and OLA. People are appreciative of the service owing to low fees. They turn into customers real quick. OLA is helping people to pay bills in countries like India. OLA is the most popular on-demand ride service in the Indian subcontinent. They get 1 million booking requests every day. There are more than 300 thousand vehicles registered with them. This includes cars and rickshaws. The company is valued at $5 billion.

Long sighted vision

A company like OLA doesn’t consider itself as just a cab company. They consider themselves as Technology Company. They don’t own a single cab. Yet their vision is to improve mobility for everyone. These companies operate a marketplace where they aggregate the supply. They also aggregate the demand indirectly. They connect demand and supply in most efficient way possible. They do that with help of mobile apps. Only 1 in 50 Indians own their own vehicle. 1 in 5 Indians use a smartphone. You do the math! The market potential is huge all over the world. There are more than 200 million motorized flips in India.