A Key Performance Indicator (KPI) is a measurable value which illustrates how effectively a company is achieving key business objectives. Organizations use KPIs at multiple levels to evaluate their success at reaching targets. The various parameters under the same are discussed below for each of the industries Ola, Oyo, and Zomato.
OLA:
Olacabs seems to be the front-runner in the Indian market with their state-of-the-art mobile-first approach to booking cabs with key performance indicator (KPI) standards established through a working group formed as part of the Commercial Passenger Vehicle (CPV) Industry Reform process. It was the first Indian taxi company to make users aware of the nearest cabs, this gave them freedom to users to book cabs at their own convenience. It’s really good to see Ola giving Uber a tough fight in the Indian market by constantly upgrading its technology.
• The Reach to the customers –Ola is racing ahead of other taxi apps in India due to its reach to the customers easily. The Indian firm operates in 110 cities, far more than Uber’s which is 31.
• Wide-range facilities –Ola has over a million drivers compared to Uber’s 450,000. Ola categorizes the users through three different services: premium (prime, lux, rentals), low-cost (including autorickshaws), and car-pooling. Following the launch of its connected car platform Ola Play, the company has seen prime rides grow too.
• Increasing market share – The wider network has also helped it increase its market share from 53% in July 2017 to 56.2% in December.
• In terms of app installs, too, Ola is ahead by a big margin. Among 650,000 Indian smartphone users surveyed, a little over 40% had Ola’s app, compared to Uber’s 28.7%. Uber also has a far higher uninstall rate in India compared to its rival.
• Payment ease –Labelled as an Uber copycat often, Ola has made several brave experimentations and stayed nimble. For instance, it has accepted cash payments right since inception, Since October 2016, Ola has allowed users to book cabs through text messages in case they can’t access the internet. This feature is key, given India’s poor data connectivity.
• Ola’s app also supports nine regional languages for cab and auto drivers—only 10% of Indians speak English.
• In 2015, the company entered the digital payments space with its online wallet Ola Money, which is now accepted at pizza chains Domino’s and PizzaHut, Café Coffee Day, online ticketing portal BookMyShow, e-commerce website eBay, and hotel booking site OYO, among others.
• Technology frontier –Ola has also made several moves on the technology front. It launched an “electric mass transport project” with carmaker Mahindra & Mahindra, leveraged machine learning to generate supply and demand predictions in India’s unruly traffic conditions, and tailored location and mapping to the country’s poorly laid out roads.
• In December 2017, it diversified into India’s burgeoning food-tech space by acquiring delivery startupFoodpanda for $200 million. This was Ola’s second outing in the segment after it had discontinued Ola Cafe, a food-delivery service similar to Uber EATS, a year ago.
• Digital Bonding –Ola partnered with Appiterate, a mobile A/B testing and app relationship marketing platform for mobile apps. One of the variations through A/B testing led to an increase in 55%, which translated to a 33% increase in user acquisition via the referral route!
Ola is not stopping at just India. The company announced its first international outpost in Australia. With more income streams set up all around, Ola may well have more funds to pour into its innovations in India. And with Uber still looking to find the right gear, Ola seems to be on the fast track to success in India.
OYO:
OYO is a hotel network that offers standardized and hassle-free stay experiences which includes major metros, regional business hubs, leisure destinations as well as pilgrimage towns. OYO revolutionized the fragmented hospitality in India by allowing standardization of services, amenities and in-room experience, and its proprietary apps for inventory-management, room-service, revenue-management, and customer-relationship management. In January 2017, OYO launched Townhouse, a hotel-brand designed to function as a social hotspot and also launched India’s maiden Home Management System - OYO Home for travelers in India’s top travel destinations.
• In the last year 2018, OYO Hotels & Homes completed its transition to becoming a 100% leased & franchised hotel chain.
• OYO has also seen global stayed room nights increase from 6 million in December 2016 to 13 million in December 2017 to 99 million in December 2018 (with the growth of 5.7x).
• 13m+ customers have used OYO Hotels & Homes globally until December 2018.
• As a testament to the strong customer loyalty it enjoys, OYO has 790,000+ Advocates in India as at December 2018.
• Oyo has continued to execute in home markets of India and China and has expanded into global markets including Malaysia, Nepal, UK, and UAE.
• OYO is among the top 10 hotel chains in the world and is growing exponentially to be the World’s #1 hotel chain having 458k fully controlled, leased and franchised keys as at December 2018 already worldwide.
• Realized value run rate increased from $ 0.4B in December 2017 to $ 1.8B in December 2018 with a growth of 4.3x on a y-o-y basis for Oyo.
• Revenue as per consolidated financial statements increased from INR 120 crore to INR 416 crore, which is a 3.5X growth in FY 2017-18 and in FY 2018-19, it is trending at INR 1,481 crore with a 3.5X increase.
• Margin expansion and a high degree of operating leverage in the business model has resulted in, losses as a % of the total realized value (net of cancellations) coming down from 44.5% in FY 2016-17 to 20.3% in FY 2017-18 and is trending at 10.4% in FY 2018-19.
• Majority of demand is repeated with word of mouth customers accounting for 93% of revenues in Q4 2018 (Oct-Dec) and hence ensuring lower marketing spends.
• Embarking on multi-brand strategy, launched several new products last year including SilverKey (Corporate Apartments), OYO Living (millennial housing), Pallete (Resorts) and OYO Homes (Vacation rentals).
• Significant growth in a bouquet of new products viz. Living, Weddingz (integrated into OYO Hotels & Homes business), F&B (Food & beverages) and delivery services as motivating signs of success.
• Oyo has 74 OYO Townhouses as at December 2018, running at more than 85% occupancy showing the incredible value they are generating for their asset owners and great guest experience.
• OYO Hotels & Homes add more assets than the total size, leading player of choice with ~12x the size of the second-largest player in the Indian hospitality market.
• An elite group of engineers, architects and designers renovated 9,000+ buildings in India in 2018 having capability to transform all facets of an asset on average in 14 days.
• Industry acknowledged best in class hospitality delivered with tech and highly trained on-ground general managers (8,700+ properties operate on proprietary management system and more than 800 Oyo general managers on the ground with problem-solving abilities).
• The incessant focus on customer experience has seen Oyo NPS scores in India increase from 47% in December 2017 to 51.4% in December 2018.
• Enabling 100,000+ jobs for young people ranging from house-keeping to AI & data science.
• 29.3% of customers repeat in the next quarter after their stay, bringing in a world-leading hospitality metric.
As a leading hospitality industry, Oyo achieved success while –
• Fast Company rated Oyo as one of the Top 10 Most Innovative Companies in India 2018.
• On July 18 OYO Hotels & Homes was honored to be called the Start-up of the Year by Economic Times.
• In September 2018, the Company was also declared as the most sought-after start-up in India by LinkedIn. Additionally, LinkedIn has recognized OYO on its list of ‘Top Companies Where India Wants to Work’ for three years running now.
ZOMATO:
Zomato is present in over 10,000 cities across the globe today with over 1.4m active restaurants. They are the market leaders in restaurant search/discovery in 19 of the 24 countries in which they are in, and have 70m monthly active users on their platform. They also have 5million new user registrations and 11million app installations (Android + iOS) every month.
• Zomato impacts the quality of food that restaurants serve, by keeping them accountable to their users through de-facto restaurant review and food discovery platform in 19 countries.
• It improved accessibility by providing instant information while food delivery service is also constantly looking to deliver better food to more people from more restaurants, faster than ever before.
• It has improved affordability by making it a level playing ground for everyone by giving restaurants to operate and grow their business from an easily accessible and transparent platform when they must innovate and cut costs in order to win.
• Zomato Gold also significantly improves affordability for users, while helping restaurants fill their tables and increase their net profit.
• Zomato drives assortment by helping users discover new tastes and experiences across the world by showcasing ‘what’s new and fresh’ to our users, and tell them what other users liked. Thus encouraging restaurants to innovate too.
• Hyperpure is the big step taken towards creating the future of food. It is a clean food supply chain for restaurants to buy fresh and high-quality ingredients. Responsible local farmers and suppliers are signing up on Hyper pure to find responsible restaurateurs who will buy their produce — without the usual middlemen.
• Delivery revenue for FY19 is $155m compared to $38m in FY18 (4x annual growth) contributing ~75% to total revenue, up from ~55% in FY18.
• Zomato operates the service in over 200 cities in India, up from 15 cities in FY18 and made nearly 33million deliveries in March’19 (~7x y-o-y growth).
• Over 100k restaurants are listed in India, generating an annual run-rate GMV of over $1.5bn.
• With Piggybank, the loyalty program for food delivery, users save upto 10% of their total amount. 2m+ users across 17 cities in India have collectively saved a staggering Rs 260m+, according to their report.
• Zomato Gold has partnered with over 10,000 restaurants globally to offer either 1+1 on food, or 2+2 on beverages, allowing users to get more bang for their buck each time they dine out.
• As on 31 March 2019, they have over 1m active subscribers of Zomato Gold globally compared to 170k active users as on 31 March 2018.
• Through a digitized platform, currently active in seven cities, food@work by Zomato serves 125,000 meals a day, partners with 300 caterers and serves 70 companies partnering with Tier–1 caterers like Elior and Voila to the cash-and-carry segment providing better compliance and food safety.
• Organized Zomaland - a food carnival, a first-of-its-kind across the world, in Delhi, Bengaluru, and Pune which was attended by 120k people collectively, featuring over 200 of the best restaurants, it was the perfect opportunity for more people to discover new culinary delights, as well as enjoy some of their old favorites.
• Hunger Heroeswork on innovative and sustainable programs to ensure all excess food from various restaurants and venues, that would otherwise go to landfills is donated to people in need. Feeding India has served 20 million meals with its 5 key programs including 8,500+ volunteers working in 71 cities, 50+ community fridges, and 21 food recovery vans.
-Nanditha & Ramesh