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Ola Cabs started making money in every ride in June

Ola uber

Starting late June, Ola Cabs has had a positive Effective Net Take Rate (ENTR) from its rides, CEO Bhavish Aggarwal was quoted as saying in an email to the company’s employees. The email was reported by the Economic Times. This still doesn’t mean that Ola is close to being in the black. It still has to be profitable enough to earn back the money it spends on paying its employees and in developing and maintaining the Ola service. ET’s report says that the company is aiming to be profitable by the end of this year.

Cab hailing ENTR

Per Fool, the take rate is “the percentage of the value of the transactions they facilitate that they get to keep as revenue”. In Ola and Uber’s case, the take rate is going to be impacted by multiple factors. The first is, of course, the driver partner. Most of the fare on Uber and Ola (obviously) go to the people who own the car and drive riders. And then there is the incentives drivers get. Finally, discounts and payment gateway charges shave off a lot more of the fare. ET reports that after all these deductions, both Uber and Ola were losing anywhere between ₹100–200 per ride.

These numbers vary for Ola in different cities, depending on the market and how long the company has operated in those cities, ET reported.

Ola and Uber — competitive snapshot

Ola is in 102 cities with 450,000 plus vehicles, according to the company’s About Us page.

In comparison, Uber is only in 29 cities with an unknown fleet of vehicles. The companies are virtually unchallenged in app-based cab-hailing.

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