Investigating Commuter Satisfaction in OLA: Analyzing the Effect of Real-time Pricing on Ride Expenses and Customer Loyalty

Abstract

Innovative ride-hailing services have caused a transformation in the transportation industry. Ola, the pioneer of taxi aggregation services in India, has played a significant role in driving this change. In 2010, students from the esteemed Indian Institute of Technology (IIT) Bombay founded Ola. From that time on, its global presence has expanded, now operating in more than 250 cities. Ola is recognized for its user-friendly travel choices, distinguishing itself through innovative business strategies that surpass regular taxi services. Ola’s strategy for operations is founded on the dynamic pricing model, a concept that the company created and brought into the transportation industry. This model demonstrates Ola’s ability to promptly modify pricing by market supply and demand fluctuations. Ola has established itself as a major player in the highly competitive ride-hailing industry, boasting more than 125 million users. This study analyzes the complex connection between Ola’s dynamic pricing strategy and commuter satisfaction. It also aims to analyze the impact of real-time pricing on ride costs and customer retention. This study seeks to uncover the various factors impacting commuter decisions within the growing taxi-hailing industry by analyzing customer satisfaction, decision-making processes, communication openness, app usage trends, and brand reputation. This research provides Ola with important information to enhance customer satisfaction and perfect pricing strategies. To accomplish this, it evaluates how clear the communication is perceived to be, examines the factors that greatly affect commuter satisfaction with Ola’s dynamic pricing, evaluates the impact of pricing on consumer decision-making, and understands the relationship between pricing changes and user interaction. It is essential to grasp the impact of real-time pricing on commuter satisfaction and loyalty to maintain market leadership amidst ongoing transportation sector changes, highlighting Ola’s significant role.