the current show of strength by drivers of cab-aggregating companies ola and uber is a reflection of how indian market and market players are unreservedly incomparable to scenarios of the west. it is time that many are debating the impending bubble burst in india’s startup ecosystem; had they been vigilant and diligent from start, such debacles were avertable.
here are five simple lessons for these taxi hailing companies, and these are generic for applicability in wide-ranging scenarios of today.
first, and this is fundamental, assessing india as an aggregate market with stakeholders and consumers toeing the same west line is a fault. replicating stories of growth in west in this asian giant will only culminate into disasters and eroding of public confidence in such businesses.
second, doling out sops and subsidies isn’t what that works in india. had it been so, the government’s persistent bill on fertilizers, food, other subsidies would have eventually come to an end. respect your money.
third, a comprehensive, rational and dedicated study of indian market is what that has to precede any implementation. people’s preferences, capacity and willingness to pay is to be researched, for they are not the same as consumers in developed economies.
four, and another commanding covenant, disruptive tactics won’t work every time, barring a few cases. india already has adequate infrastructure for trade and conduct of other transactions, which is to be factored in and integrated in new business models; circumventing these can rarely work.
five, easy and rush money cases are a flop. you may fill wallets with some gift cash, offer unviable cash backs to customers, incentives to businesses to bring them on board, this will not boil down to sustainability, let alone gaining market share.
the choice is simple, change ways or perish.
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