Life of Bill Gates

Entrepreneur, businessman and great philanthropist , Bill Gates and his partner Paul Allenfounded built the world’s largest software business, Microsoft, through technological innovation along with its keen business strategies. This lift him to the peak of richness.

Bill Gates and Microsoft

In 1975, Bill Gates and Paul Allen formed Micro-Soft, a blend of “micro-computer” and “software”. With his awareness for software development and business sense, he led the company from the front. He personally used to write and assemble every necessary source code which he finds to get redefined.

Following the development of software for IBM, between 1979 and 1981 Microsoft’s growth increased tremendously and revenue shot up from $2.5 million to $16 million.
In March 1986, Bill Gates took Microsoft public with an initial public offering (IPO) of $21 per share, making him an instant millionaire at age 31. Gates held 45 percent of the company’s 24.7 million shares, making his stake at that time $234 million on the other hand Microsoft’s $520 million.

Entrepreneur and Businessman

Bill Gates’ intelligence allowed him to be able to see all sides of the software industry—product development and corporate strategy.

Despite the success of Microsoft, Bill Gates never get satisfied on the current success . He developed white-hot drive and competitive spirit. He expected everyone in the company to have the same dedication. His confrontational management style also became legend, as he would challenge employees and their ideas to keep the creative process going.
Outside the company, Bill Gates was crossing several peak feats of a reputation as a ruthless competitor. Gates pushed ahead with the Windows software, improving its operation and expanding its uses. In 1989, Microsoft introduced Microsoft Office, which bundled office productivity applications such as Microsoft Word and Excel into one system that was compatible with all Microsoft products. Microsoft’s new version of Windows sold 100,000 copies in just two weeks. This left Microsoft with a virtual monopoly on operating systems for PCs.

Global impacts of Microsoft
From last 4 decades, Microsoft has been in existence and maintained their empire in Software industries.

  • Microsoft invented the smartphone and tablet

Scratch your head in confusion as much as you want, but this is legitimately true. Microsoft was the first company to highlight the smartphone and tablet. It did so with Windows CE, Pocket PC, and Windows Mobile.

  • Microsoft changed the way we use computers

Computers decades ago were too complicated for the everyday man, but Microsoft went ahead and changed the game by making PCs. Now Microsoft is hoping to change things again with the announcement of HoloLens, a personal holographic computer housed over the eyes.

The Bill and Melinda Gates Foundation

In 1994, Bill and Melinda Gates established the William H. Gates Foundation, which was dedicated to supporting education, world health and investment in low-income communities. With Melinda’s influence, Bill had taken an interest in becoming a civic leader in the footsteps of his mother, studying the philanthropic work of American industrial titans and a richest Entrepreneur turns into great Philanthropist

The organisation tackles international and domestic issues. In 2015, Gates spoke out in favour of national Common Core standards in grades K through 12 and charter schools. The foundation announced that it would give its employees a year’s paid leave after the birth or the adoption of a child.

In 2017, the foundation launched first report, on examination of progress made in several important areas related to public health, including child mortality, malnutrition and HIV. At the time, he came to know infectious and chronic disease as the two biggest public health concerns that needed to be addressed over the coming decade.
In April 2018, Gates announced that he was teaming with Google co-founder Larry Page to provide $12 million in funding for a universal flu vaccine.

– Abhishek Mirgude

Depreciation of Rupee

On Oct. 09, the rupee closed below the Rs74.3 per dollar mark for the first time ever. The news that the Indian economy grew at a sprightly 8.2% in the April-June period, the highest in nine quarters, provided some cushion

As we know that the value of rupee against the dollar is continuously depreciating. Today you all will get to know why is it happening and this is an important thing that every Indian should know.
Here are some reasons for the rupee’s incessant slide.

International Trade
In International Trade, the US dollar is the main currency and to pay imports’ bill, India needs to buy a dollar. This increases the demand of dollar in the market. Hence when the imports are more than exports, then there is a need to buy more dollars to pay the imports’ bill while on another side due to lesser exports, India is earning fewer dollars. Currently, the outflow of dollars is greater than the inflow. This thing is not good for Indian Rupee.

Crude prices
In the past many weeks, international crude oil price, which had stabilized in the April-June quarter, has been on the rise again. Currently, the crude oil futures were trading above $80 per barrel. Considering that India imports nearly 81% of its fuel needs, rising oil prices leads to a higher dollar bill which, in turn, weakens the rupee.

Current account deficit
When a country’s import is more than its export then it is called as Current account deficit. Current account deficit is bad for any country’s economic progress. Rising oil prices and a weakening rupee mean that India’s current account deficit may widen to 2.8% of the GDP this financial year, up from 1.9% last year. This year, the deficit has already jumped to a nearly five-year high of $18 billion. Besides Crude oil, India heavily imports electronic goods. Also, compared to the imports, India exports lesser goods. This only adds further pressure on the rupee.

International developments
The situation in Turkey is taking a toll on currencies of the emerging markets. The Turkish lira has already lost over 40% of its value this year. Last month, the US imposed higher tariffs on imports of steel, aluminium, and other commodities from Turkey. Besides the US-Turkey confrontation, there is also the bigger US-China trade war brewing. The two countries have also been increasing duties on each other’s goods. Some observers view this as the beginning of a new Cold War. This situation increases the value of goods in the international market and this leads to an increase in India’s imports bill and hence depreciation of rupee.

Passive RBI
Typically, when the rupee weakens, the Reserve Bank of India sells dollars from its reserves to rescue it. So far, though, the Reserve Bank of India (RBI) has not intervened aggressively to shore up the domestic currency.
But this time, the intensity of RBI’s intervention has dissipated. While there is complete lack of communication between RBI , officials from the government and quasi-government agencies .

US economy
The dollar is having a good run this year due to an uptick in the US’s GDP numbers. That country’s economy grew 4.1% in the second quarter of this year, the fastest since late 2014. It has also been adding more jobs, while average wages have picked up, too.
By all indications, most of these global cues are unlikely to change much in the immediate future. So businesses and individuals in India need to brace themselves.

– Abhishek R. Pawar

Tale of three countries – India, Russia and USA.

 

Today for India, in this 21st century, advancement in defence technology is not an option-it is necessity. The India-Russia S-400 Missiles deal that was announced during 8th BRICS summit in Goa is a staggering success that Indian defence system is about to achieve. This surface to air defence missile system deal is a game changer for Indian army.

S-400 Triumf air defence system is developed by Almaz Central Design Bureau, a Russian company. Under this deal, India will be procuring five new generation Russian S-400 triumf air defence missile systems along with other defence equipments. Apart from it, India also announced to collaborate in making four stealth frigates out of which two frigates will be built in Russia and other two will be constructed at an Indian shipyard with Russian cooperation.  There’s more to this list, it will be also setting up a joint production facility for making two hundred Kamov (Ka – 226T ) helicopters, out of those sixty will be manufactured in Russia and the rest will be produced in India that will ultimately boost the Make in India project.

Features of S-400 triumf :

  1. The S-400 can neutralize the drones as well as ballistic and cruise missiles within a range of  400 kms up to an altitude of 32 kms.
  2. The system is equipped with three different types of missiles and radar capable of tracking up to 300 targets within the range of 600 kms ,creating a layered defence that can engage up to 36 targets simultaneously.
  3. It has a tracking range of 600 km and the ability to hit targets 400 km away at a blistering speed of 17,000 km an hour.

Well, it’s these features that makes S-400 almost invincible leading to an ecstatic interest of Indian defence system towards buying S-400. It’s missiles vigilantly bombarding into enemy aircraft can destroy adversaries interrupting in the Indian soil. It’s success rate of about ninety percent has totally left other countries flabbergasted.

Perhaps, it’s unlike a cake walk for Indian government to sign this deal with U.S.A’s cautionary warning, thus creating a deterrence, which if not taken into consideration might lead to sanctions on India imposed by the USA under CAATSA 2017.The Countering America’s Adversaries Through Sanctions Act (CAATSA) was a law setup by USA in 2017. Russia is already been sanctioned under this act ,which will lead to sanctioning of India, as according to this act any country buying defence equipments from adversaries of USA will be sanctioned too.

Recently,  ‘The Hindu’ had a headline “U. S admiral warned against sanctioning India over Russia defence purchase or given a waiver “ ,seems like the American government had studied the problem to depth as they might loose an important partner in Indian Ocean region to together combat with China, if sanctions are imposed. On the other hand it’s a growing concern for India that it might come under US sanctions related to CAATSA. This might not only hamper the growth of India but also put back India’s progress past seven to eight years . Leading to unabashedly besmirching the robustness of Indian economy and henceforth making it fragile enough for the citizens to sustain for livelihood. Not only this, but China will emerge out to be an undesirable host  stretching it’s arms to an extent to carve new borders.  Well the question that prevails between USA and Indian government is that ;Will the USA impose sanctions on India? Will India be offered a waiver? Will India be firm on it’s missile deal with Russia ?Will there be any changes in the deal?  .All these questions are impossible to answer firmly as they entirely depend on the diplomatic actions of both countries. Somewhere solution might conclude to, that the USA offers waiver to the India and that the India in return makes changes in the deal ,but again this might put both countries in trouble as the USA will be questioned by other countries over it’s partiality to offer waiver to India and not certain countries and hence CAATSA will no longer be enacted or respected ; on the other hand  the only change the India can make in deal is that it won’t sign for 200 Kamov (Ka-226T) helicopters which won’t allow the Make in India project to achieve marvel set up by the policy makers.

APJ Abdul Kalam once said,

“ Unless India stands up to the world, no one will respect us, In this world, fear has no place, only strength respects strength.”

And so, the Indian Government is taking challenging paths so as to make the nation feel the exhilaration of victory. The India-Russia S-400 missiles deal is an alibi for India’s stupendous progress and investment  in defence sector. India’s this move will not only ensure that the power of our nation sounds unimpeachable and unassailable, but will also frame an answer for those who are keeping an evil eye on Indian soil especially Pakistan and China. This deal might be a paradigm for those coming generation in nascent years. The USA’s warning to India for putting sanctions was an insult to the  Indian sovereignty, it was a mere step taken to create deterrence for India’s policy makers. Of course the nation won’t shun away these difficulties but rather think of a strategically diplomatic way to solve it. In the upcoming years India will work hard to ensure that it’s relationship with both the countries, the USA as well as the Russia resonate and move towards progress so as to maintain safety of it’s citizens .

– Kanupriya. V. Shelke

Engineering and Entrepreneurship

15th September is celebrated as Engineers Day reconciling the spirit and enthusiasm of Engineering across the whole country in the memory of pre-eminent engineer Sir M. Visvesvaraya.

There are a total of 3500 Engineering colleges in India and 140000+ engineers graduating every year making India to be the largest producers of Engineers in the world.The beginning of Engineering colleges was marked long back before Independence at the College of Engineering, Guindy in 1859 which was initially started as the School of Survey followed by a lot of institues including Veermata Jijabai Technological Institute founded in 1887 producing engineers taking Technology to the Society making the Institue one of the very best.

Entrepreneurs are important in any economy because of their creative ideas and innovation prove to be standard of living by providing employment.
Engineering and Entrepreneurship is a perfect blend and combo as seen and proved by Tycoons and Magnates like Mukesh Ambani, Chairman and Managing Director of Reliance Industries who graduated from the Institute of Chemical Technology, Mumbai. or the foodies Deepinder Goyal and Pankaj Chaddah, Founders-Zomato who graduated from IITDelhi , Bhavish Aggarwal- Cofounder, Ola Cabs B.Tech in Computer Science from IITBombay and the list goes on..

Technological innovation has been an important driver of this society and nation, as Innovation and design progresses, engineers play an important roles to use their briliant skulls for efficient solutions and the same skulls become the entrepreneurs who give employment and economy to the country making it a global power. This is not the end this is just the beginning and theres a lot to be achieved since the idea of the Engineer has to be implemented by the Entrepreneur.

– Yash Bhor

A Nation of Entrepreneurs

The India we are watching today is a big market, with roads full of stylish cars, shopping malls with innumerable global brands and boundless opportunities. Was this India really on similar lines before 72 years?

It was the year of 1947 when India recently got freedom from the British government. Prime minister Jawaharlal Nehru was inspired by the development of Soviet countries so he implemented socialist economy in India. The phrase “Nehruvian Socialist rate of growth” is used to refer to the low annual growth rate of the economy of India before 1991. The steel, coal, telecommunication, radio, petroleum and all heavy industries were in a public sector owned by the government of India. That era also called as Licence Permit Raj.

“It used to take us about 12 to 24 months and about 50 visits to Delhi to get license to import computer worth $1500.”
– Narayan Murthy on License Raj

The idea of government restricted foreign companies entry in the Indian Market but that notion also handcuffed Indian entrepreneurs. Also, enterprises like Mahindra & Mahindra, Hindustan Motors, Tata, Dabur, Godrej, who were growing in the market, were tied down. Government had control over every aspect of each company which restricted the growth of business and hence Indian economy.

“Never talk to me about profit, Jeh, it is a dirty word.”
- Nehru, India’s Fabian Socialism-inspired first prime minister to industrialist J.R.D. Tata, when Tata suggested state-owned companies should be profitable.

The correct time of Indian entrepreneurship started growing after the liberalisation of 1991. Finance Minister, Dr. Manmohan Singh, opened the doors of India for foreign investments and reduced the regulations on businesses which helped Indian Economy to speed up in a way like it never did before.

Some giant companies we see in India are considered as a children of liberalisation. Let’s take thel example of Infosys. In the first decade of its existence, from 1981 to 1991, Infosys grew to less than $5 million. In the 20 years since liberalization began, the company has grown to become a $6 billion-plus entity, and one that is well established in the global arena.

“We got government off the backs of people of India, particularly off the back of India’s Entrepreneurs. We introduced more competition to release the innovative spirits which were always there in India. The economy turned around much sooner and much more deeply than I had anticipated.”
– Dr. Manmohan Singh after economic liberalisation

There are various entrepreneurs who has key role in building this economy. J.R.D Tata, Sunil Mittal, Dhirubhai Ambani, J.C.Mahindra, Narayan Murthy, Jamnalal Bajaj, Shiv Nadar, Kiran Shaw, Ardeshir Godrej, Mohammad Premaji and many more industrialists helped India to set up a global rank. The same spirit also continues with Indian entrepreneurs of new generation like Sachin Bansal, Vijay Shekhar Sharma, Deepinder Goyal, Bhavish Aggarwal and the list goes on.

The growth of Entrepreneurship in India continued year by year. Prime minister of India, Mr. Narendra Modi had announced the campaign ‘Startup India’ on 15th August 2015 at the Red Fort, exactly 3 years before. Currently, India is standing at 68th position in Global Entrepreneurship Index. The scenario of Indian Entrepreneurship is not so good but there is a silver lining which makes Indian entrepreneurs stand firm again.

Looking at India, unemployment is really a great issue for our youth. According to the statistics of Center for Monitoring Indian Economy (CMIE), 31 million youngsters are jobless. Even the 60℅ engineers are unemployed in India as per AICTE. Jobs in MNCs and settlement is always priority for the graduates of our nation. Is this the most optimistic road for Financial Independance in India?

Entrepreneurs are important in any economy because they create employment, generate new ideas and implement new techniques in management functions. Entrepreneurs will increasingly contribute to India’s GDP and also have a greater impact on socio-economic fabric of the nation. We heartily salute these nation builders on this independence day.

It’s been an honour for Entrepreneurship Cell VJTI to announce theme of this year as ‘A Nation of Entrepreneurs’. We will put forth many great influencers of this great nation in front of you along the year. E-Cell VJTI is really glad to be a part of building a great nation of entrepreneurs.

Happy Independence Day!

– Lalit Jadhav

The breathtaking achievement of ISRO

We don’t have the best technology in the world, but we have some of the brilliant minds working hard to put India among the top space agencies. Launching of 104 satellites with a single rocket, Mangalyan-The Mars mission, the glory for India which made India the first Asian nation to reach the Mars orbit, and the first nation in the world to do so in its first attempt. Only Indian’s can do it and directly can ISRO do it.

Indian Space Research Organization was founded in 1969. ISRO supplanted the past Indian National Commitee for Space Research(INCOSPAR) which was founded in 1962. In establishment of the ISRO there is a lion share of The Padma Bhushan “Vikram Sarabhai”. He is an Indian scientist and innovator most popularly known as ‘The Father of Indian Space Programme’. He was the first chairman of INCOSPAR, which later came to be called as ISRO. Actually, Space research in India began in the 1920’s with studies conducted by scientists S .K Mitra, C. V .Raman and Meghnad Saha. However, it was only from the 1940’s and 50’s that institutionalised probe into space related activities started gaining nationwide attention. At this point, space studies in India were restricted to aspects of Earth’s atmosphere, weather prediction and the surrounding magnetic field. History of space activities in India reached its first milestone in 1962 when Pandit Jawaharlal Nehru along with scientist Vikram Sarabhai established the Indian National Committee for Space Research (INCOSPAR). Following the establishment of the INCOSPAR, the first rocket launch from India took place in November 1963.

Today ISRO has achieved unexpected success in all over world. We can say that ‘It has climbed mountain, just in some time. ‘Vikram Sarabhai, Prof.Satish Dhavan has put their hands in establishing ISRO. Considering the achievement made by India in the field of Space technology, the best approach for the country is to allow only Indian registered satellite system i.e, setellites that are coordinated internationally through the Union Government to operate over India.

The first ever achievement for ISRO was in 1975, Launching of first ever settallite ‘Aryabhatta’. In 1983, first lunar mission – Chandryaan – puts India in an elite club of six nations. In 2014, ISRO had a successful mission to Mars. which cost 10 times less than the same mission undertaken by the US previously. And because of only ISRO, today we have our own navigation system IRNSS. Recently, ISRO successfully tests GSLV MK3 to enable India to send man to space by 2020.This achievements of ISRO are heartbreaking. Mission to mars Mangalyan was the unbelievable success of ISRO.

In the Kargil War, India didnt have its own GPS system and because of this it brought lots of trouble to India. Hence, from that day, Goverment of India took his foot to achieve its own GPS system. And now today, because of ISRO India have its own GPS system called ‘Indian Regional Navigation Satellite System’,IRNSS.

Work Area:

Crew vehicle development
Technology demonstration
Astronaut training and other facilities
Major Accomplishments:

Chandrayaan-1: First mission to moon
Mangalayaan: Mars Orbiter Mission
Recently, they launched PSLV-C36 which deposited a record 104 satellites into space.

So, Today we salute Padma Bhushan Dr. Vikram Sarabhai because of him today, ISRO is in the top six Space Agencies in the world, according to the Forbs.

– Yash Patil

The Unpredictable Economy

  • Yo

My mornings seem bland without having a gist of “THE HINDU “. So on a sultry June, I was reading the editorial section and my sight fell on a particular article saying ‘The currency had weakened past 69 intraday against the U. S. Dollar ‘. Well, it took me few days to understand it, I googled everything and came across many enigmatic words, one of which was ‘inflation’.

Inflation means the increase in prices of products or services and the decrease in the purchasing power of money. For example, a chocolate today costs Rs. 10 but in the past it used to cost Rs. 5. So, as the price increased the purchasing power of rupee reduced.

Now, what are the causes of inflation:

1)Demand supply inflation

Consider a book, if its demand is for 1000 students and supply is only of 100 books then manifestly the price of individual book will have an increment compared to its earlier price. Evidently it has caused an inflation because the price of the product has increased.

2)Cost-push inflation

Consider the same example as above, let’s suppose its price earlier was Rs. 150, but due to rise in manufacturing cost the book price will eventually cost Rs. 200. Seemingly, it has caused an inflation again.

3)Monetary inflation

Well, it’s quite interesting. If the government prints more money than the required currencies for circulation, then people will have more money, looking at it manufacturers will ponder to increase cost of products. Patently, price of product has increased and purchasing value of currency has decreased, provoking monetary inflation.

 

When I was a tiny tot, I used to wonder that if there’s so much poverty issues in our country then why don’t our government print ample amount and distribute it to all ?

Let’s see an example, consider  A, B, C each having money Rs 500, Rs 300, Rs 100 respectively. Also consider there’s a granary shop having 90kg rice selling at Rs 10 per kg.  So the peak kgs of rice brought by A, B and C are 50, 30 and 10 kgs.

Now, if it all goes according to my question and government decides to distribute twice the currency to three of them, then A, B and C will have Rs 1000, Rs 600, Rs 200. Perhaps on the other side as the shop still has 90 kgs of rice, the owner might probably think of incrementing the rate to Rs 20 per kg. Again if we find maximum kgs of rice purchased by three they are exactly the same as that of earlier scenario.

It concludes that printing more currencies won’t solve the problem, infact it might give rise to an inflation. Limited currency will stabilize more of the market price. There will be an economic growth only if there is growth in production.

Another term opposite to inflation is deflation. Deflation means reduction of the general level of prices in an economy. There are two reasons that primarily contribute to deflation. Firstly, increase in supply and secondly fall in demand or both. Inflation does less harm to the economy than deflation, reason being that when prices begin to fall after an economic downturn deflation may set in causing an even deeper crisis. Demand drops and unemployment increases. A small amount of inflation is good for economic growth, around 2-3%. But Indian Rupee has reportedly crossed the safe line leading  its way to the downfall!

–  Kanupriya. V. Shelke

Henry Ford: Engineer turned Entrepreneur

 

Today, the renowned ‘Ford Motor Company’ has a net worth of nearly $70 billion, selling their vehicles across every country known. But all this fame didn’t come the easy way. The founder of this company, Henry Ford, is still credited as one of the top industrialist America has ever had. His ideas were one of the key reasons which contributed to the revolution in American industries.

“Hard knocks have a place and value, but hard thinking goes farther in less time,” he once quoted.

Henry Ford was born on July 30,1863 in Greenfield Township, Michigan, into a farmer’s family. During his teenage years, he decided to work as a machinist because farm work did not satisfy him. Later, he returned to the farm and started working as a steam engine operator. In 1890, Ford was hired as an engineer for Detroit Edison Company. In 1892, Ford built his first gasoline-powered buggy which had two-cylinder, four-horsepower engine. After being promoted as chief engineer, Henry Ford constructed his first model car, ‘The Ford Quadricycle’ in 1896 which he presented in front of Thomas Edison. The lighting genius encouraged Ford to build a second better model.

By 1898, Ford was awarded with his first patent for a carburetor. Later, he quit Edison Company to pursue his car-making business full time. His determination led to the establishment of ‘Ford Motor Company’ in 1903. After launching few cars, the company launched the famous ‘Model-T’ in 1908 with a steering wheel on the left side. This idea was later copied by other companies. The car was simple to drive and cheap to afford. ‘Model-T’ was a great success in American markets and almost every middle class man owned one.

In pioneering a car affordable to nearly everyone, Ford increased the minimum daily wage of his time, essentially creating a middle class, and changed forever the way the automotive industry produced and distributed cars. His stunning success didn’t occur because of a masterful business sense; he was more of an entrepreneur—an idea man. But his unconventional ways took his company to the top.

There after, the models started getting better and the company flourished. Henry Ford always believed that the most important part of his industry were his labours. And so t,o speed up the production and ease the manual work, he launched the first moving assembly line in 1913. The introduction of moving belts led to its use in every sort of industries in America.
During WWI, Ford also entered the aviation business by launching the ‘Ford Airline Company’. He also developed automobiles for racing sports. But these ventures didn’t go as planned!

Nearing old age, he passed on the presidency of his company to his only son, Edsel Ford. But Edsel could not cope with the pressure from the industry due to his health issues and he eventually died of cancer in 1943. Then his elderly and ailing father, Henry Ford decided to assume the presidency again. After a few years, due to his failing health, Henry Ford ceded the company’s presidency to his grandson.
Henry Ford died of cerebral hemorrhage in April 7,1947 in his Dearborn estate, Fairlane, thus completing the circle of life.

-Sneha Lokare

Ola: Business Model

Ola, the ‘on demand’ Taxi Hailing Service can be called that blue eyed boy of the Indian startup Eco-system that Zomato was once. ‘How does Ola make Money? ’This question has fascinated a lot of us.So let’s see it…

Glimpse of early days-

Ola cabs used to operate as Fleet cab service provider during its early days. It used to work as follows…

1) You call upon their call center

2) tell them date, time of trip

3) get a car at doorstep and pay in cash when trip ends.

Later OLA pivoted to App based aggregation model seeing the peak rise of Android and Apple devices.

Ola founders: founded in 2010 by Bhavish Aggarwal and Ankit Bhati.

Ola funding: appx. 1.5 Billion USD(as of Dec 2015)

Ola valuation: Appx 5 billion USD(as of Dec 2015)

Business model of OLA-

The most significant contributor to Ola cabs revenue model is ‘X%’ commission from the total fare of the trip.e.g. Ranges from 15% to 20% depending on city and type of vehicle.

The trip fare is a combination of-

Travel time
Distance cost
Waiting time
Service tax on total trip fare

Eg. Of revenue model-

#Assumptions-

1) Travel Cost per KM- 15 INR

(first 5 KM @ 100 INR)

2) Travel Cost per Min-3 INR

(after first 5 mins)

3) service tax-14.5%

Now assuming average cab ride is of 10 KM and travel time is 15 Mins. Thus,

Total Fare=
100(of first 5 KM) +

10*3(travel cost of 10 mins) +

5*15(of remaining 5KM)+

=205 + 14.5% of 205(ST)

=234.72 INR

Ola’s commission-205*20% + ST
=41 + 29.72(payable to Govt.)

Driver’s payout= 234.72 – 41 – 29.72= 164 INR less 10%TDS( as per Income Tax Act)=157.6 INR

Now lets see it on a larger scale-

Expenditures: An average driver in Bangalore does 9 rides (For Mumbai this is logically lower because of a cheaper availability of public transport, and Delhi a bit higher due to lack of personal commute). Ola pays on average Rs. 3,000 for these rides. There is a 20% commission which is Rs. 600. Hence Gross expenditure is Rs. 2,400 per day per cab .

Earning: An average ride of Ola is 6–7 Km for which customer pays Rs. 150. They also charge a vendor-side commission as mentioned, Rs. 600. Hence a gross earning of 150*9 + 640 = Rs. 1950 per day per cab.

Burn Rate: In Bangalore there are over 45,000 cabs, 70% of which are actively on road. This means that they serve 2.83 Lakh(70% of 45000 * 9) rides per day. The burn is Rs. 2400 – Rs. 1950 = Rs. 450 per cab. Cumulatively Ola burns (..wait for it) Rs. 94,50,000 or 94.5 L per day only in Bangalore.

This may not be the exact numbers but according to Ola Wiki the annual burn is Rs. 754.87 crore or approx. Rs. 2 Cr per day

which is a public number hence highly diminished.

Other Revenue Lines of Ola

Percentage Commission from Trips being served through its platform (Trip Based Commissions)
Ola Money Wallet
Corporate Tie Ups / Event Tie Ups
Vehicle On-Boarding Fee
In-Cab Advertisements
Fleet Leasing (To Drivers)
Car Type
Peak Time Charges
Currently both Uber and Ola cabs are following the strategy of expanding their operations and gaining customer base in various cities in India while providing a delightful customer experience to gain trust.

So, here was just a basic analysis of business model of Ola cabs, one of the coolest successful startups in India so far. Stay tuned…

Success Story of Instagram

Edisson said that a genius is 1%inspiraion and 99% persiraion. so behind every successful person, company or product, inspiration has an important role to play.

“What are some good places to get professional business cards printed for someone in the Bay Area? I’ve got a design, I just need printing.” When Kevin Systrom (one of Instagram’s founders) put this innocuous question to the Q&A forum quora on Jan 29, 2010, little did he know how valuable those business cards would be one day.

Instagram is a different kind of company. When it was bought by Facebook for a billion dollars last year, it had only 13 employees — and no furniture in their office space. Its founders, Systrom and Mike Krieger, are multimillionaires who haven’t yet blown 30 candles on a birthday cake.

To say that it’s been a meteoric rise would be an understatement. Naturally, the story of this photo sharing community is fascinating. And as Kevin dug around to learn about it, he came across the Quora accounts of Systrom and Krieger, which have better information than any of the hundreds of articles he had read and videos he had watched. This is Instagram’s story, straight from its foundersSystrom had dabbled with a bit of programming through school and at Stanford, but was never quite proficient at it. He has no formal computer science training or degree. And when he took a marketing job at Google, he forgot all about that. “Only at my next job at Nextstop would I say I went from being a hobbyist to being able to write code that would go into production,” he recalls. “While I was there working in marketing, I started doing more and more engineering at night on simple ideas that helped me learn how to program.”

One of those ideas was Burbn. It was an HTML5 app that mimicked Foursquare’s concept of “checking in”. The only major difference was that it ran through a browser and used text messages.

At a party one day, Systrom met people from Baseline Ventures and Andreessen Horowitz. They liked the prototype he showed them, so Systrom quit his job to work full-time on Burbn and raised $500,000 from the venture. They decided that if they were going to build a company, they wanted to focus on being really good at one thing, They saw mobile photos as an awesome opportunity to try out some new ideas. They went back and forth a little more between a dedicated photo app and the full-fledged Burbn, but the latter felt too cluttered.

The name took a long week of searching. It needed to say ‘right here, right now’ and had to sound “camera-y”. Plus, it had to be unique. And finally, it had to be something a person could spell if you told them the

name. They finally settled on Instagram — “an instant telegram of sorts.”

Over the next eight weeks, Instagram was beta-tested with about 100 users. Krieger and Systrom did all the coding, with the latter working on the design and the icon.

It was finally released on the App Store on October 6, 2010, and immediately caught the world’s fancy. Two weeks later, it was featured in Japan as New & Noteworthy. And after another week, it was App Of The Week in the App Store. There’s been no looking back since then. Pretty soon, everyone from Justin Bieber to Kim Kardashian was using it. Nature photographers were putting up stunning photosThere was something different about Instagram. Square images would end up being Instagram’s most identifiable feature, right after filters.

The filters were a big hit on the iPhone, whose camera was “good enough but not great” at the time. Filters took away those imperfections and made photos look better. Whether it’s apparent or not, there is a lot going on behind the scenes.

It was a whirlwind ride from November 2010 to April 2012, when Facebook purchased Instagram for a 1 billion dollars, netting Systorm $400 million and Krieger $ 100 million. Today, Instagram has 150 million active monthly users, with an average of 40 million photos being shared daily. Over the years, it’s amassed an incredible 16 billion photos! It even has video now