[#12] Tale of Chaos: OLA. OLA Cabs. OLA Electric. Futurefactory. Ather & Yulu—a speed bump? Bhavish's vision is on the WHEELS, the question is: Is the future of India riding on Battery or Booking?
I Love You 2000. Let’s not fool ourselves in April and simply start the morning by congratulating ‘YOU’ for being an intimate inKredible subsKriber of iKyu.
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~ vivan (and iKyu).
Now, let’s get back to breaking down businesses.
"We live in capitalism. Its power seems inescapable. So did the divine right of kings. Any human power can be resisted and changed by human beings. Resistance and change often begin in art, and very often in our art, the art of words."
— Ursula K. Le Guin
It’s the sapphire spring that sprung over the startup/business world in India. Marching in with a beautiful reportage. In a world which was built on the sound of “vroommm vrooommm” — we now are being fed to romanticise the silence of the silicates.
To ELI5 you: “We are talking Lithium. We are talking Batteries. We are talking about OLA Electric and Bhavish Aggarwal’s guilty pleasure of triumphing in the EV market in India”
Bhavish Aggarwal
But does a deviant pet project have what it takes to become a charming poster boy brand of the EV revolution in India; where other players have started swooping in and glueing the gap where once OLA ruled?
THE (K)EY NOTES:
The (K)urrent: THE OLA RISE/RIDE
The (K)réme: THE OLA WIDE/SLIDE
The (K)inK: THE OLA HIDE/INSIDE
Before OLA Electric was an armour plate, OLA had a Tetralogy. In today’s documentary-style Breakdown Edition, we are experiencing OLA’s ‘ABS’ (Avalanching-Business-Story)…
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Ola Cabs walked, so OLA Electric could run. But Still NOT Guilty?
THE (K)URRENT
THE OLA RISE/RIDE…
OLA is not a car/cab or any vehicle company. OLA is a funny company. It shall unveil itself. This is not the first time OLA has been Kriticised for octopus-sing into different ventures as teenage exploration phases. But before we slide, let’s dive into the tale of the tape…
Ola Café
What was it exactly? Who knows?
Shut just after a year of launch (2016)
FoodPanda
Acquired for what (who knows!) exactly?
In 2017, 200K+ daily orders to not even get it up to 5K by 2019
Acquired at $50Mil Valuation. Shut in 2019.
Ola Cars
Used-vehicles Reselling. A good business to be in with a brand built under the OLA label
But operations halted. Why? No one knows.
OLA’s Press Release said, “infrastructure, technology and capabilities of OLA Cars will now be repurposed towards growing Ola Electric’s sales and service network.” OK.
Ola Dash
Formerly Ola Store. A grocery delivery service. Shut down in 2016
But revived in 2021 as Quick-commerce grocery delivery. Yes. Zepto/Blinkit 10-15 mins fever caught up to OLA.
Set up 200 Dark stores. 9 Cities.
Rebranded from OLA Store to OLA Dash.
Shut down in 2022.
Did you notice? Did you figure out the pattern?
Where are they? Just like the teenage exploration phase has an expiry date; OLA couldn’t keep up with any of its ‘experiments’. There’s a pattern attached to it. When turbo-charged emotions become your aspiration to build for a cause you will fail no matter the risk you’re willing to take. A fundamental flaw is ignored.
Still NOT Guilty?
They say “Stick with what you’ve right now. GROW it. Then venture into different silhouettes” —They’re not WRONG. They only assert with the data they have. Can’t argue it but accept it. Well, it’s not for everyone!
But hunger is a brute. Brutes build to survive. That’s what Bhavish is all about now? But how long does a ‘Brute’ have?
THE (K)RÉME
THE OLA WIDE/SLIDE…
“OLA Electric faces energy put down due to competition” “Vanguard Slashes Ola’s Valuation By Another 29% To $1.8 Bn” “OLA Electric has a bumpy road ahead…”
Recent OLA Headlines.
With OLA Electric’s fancy roadshow of IPOs and new product lineups, it’s slowly and gradually stalling the EV Market. Becoming a mammoth is one thing, but in a lucrative market like India — there’s every 3-4 Davids for One Goliath.
TECH-TAC-TOE
This gaussian-GREEN obsession of India showcases a brevity pattern of India’s market and consumers. Because we are a chest for DAU farming, it’s very easy to push a trend in our diaspora. You name it, we are always the first one to adopt, acclaim, ascend, and avoid — Web3. NFT. Blockchain. AI. EV.
India is to be titled the EARLY ADOPTERs. But a challenge is that by being early to the party, you can’t estimate how many more are to arrive — that’s what happening with OLA Electric.
When a difficult density point is created in a market, the “technology-adoption life cycle” dies. What happens after this?
PRICE HIT.
Yes, Bhavish is suiting up for an IPO (might be soon or never? Who knows…) — And might be posing to fine-tune its supply chain, ironing out production wrinkles and extinguishing the EV Heat (or FIRE); All of these shenanigans for what? An IPO.
Ola in August last year, was devalued by over 50%, just six months after its first cut in February 2023. Ola’s biggest investor valued them at $3.5 billion in its August 2023 round. It gets even crazier because the vision of hyper-growth comes at a cost; that too when OLA’s bumpy ride is just getting started.
The world's largest issuer of mutual funds “Vanguard”, the gentlemen's firm in the startup ecosystem has slashed the valuation of Ola to $1.88 billion, lower than its latest fair value of $2.65 billion as of August 31.
“So far, Ola has raised around $4 billion in equity funding from investors such as Tiger Global Management and SoftBank. The company had planned to do an initial public offering in 2021 and even engaged investment banks to underwrite the offering, only to later withdraw its plans. ANI Technologies, the parent company of Ola, said its standalone loss in FY23 narrowed by nearly 65%, coming in at Rs 1,082.56 crore.”
Lithium, a key component in EV batteries, is at the heart of India's push towards sustainable transportation. Ola's potential foray into lithium mining reflects the broader ambition to secure essential raw materials domestically, reducing reliance on imports and supporting the country's goal to increase EV adoption.
In the competitive landscape of India's electric vehicle (EV) sector, where giants are rising every minute along with Ola Electric's long-haul play, understanding the market dynamics and the challenges it faces requires a look into the broader industry statistics and trends.
As of 2024, the Indian EV market is estimated to be valued at approximately USD 34.80 billion, with projections suggesting a growth of USD 110.74 billion by 2029. This growth is expected at a Compound Annual Growth Rate (CAGR) of 26.05% during the forecast period from 2024 to 2029. The market's expansion is attributed to various vehicle types including passenger vehicles such as hatchbacks, multi-purpose vehicles, sedans, and sports utility vehicles, along with two-wheelers which are a significant segment in the Indian market due to their popularity and ease of use in the country's urban and semi-urban areas.
Now that’s Finger LITHIUM’s good…
OLA Electric’s “HELL IN A CELL”
The competitive landscape is no cooler than a KJO not-so-blockBUSTER film. A long list of uprising stars trying to establish a base in the industry—but Dharma is watching…
Ather Energy
Yulu
Simple Energy
Bounce Infinity
Ultraviolette
Tork Motors
Okinawa Scooters
Revolt Motors
And many more… (plus a handful in making)
Still NOT Guilty.
Passenger vehicles, particularly those in the mid-range price category, currently dominate the market share, propelled by their comfort, range, and the availability of various models catering to different consumer preferences. Battery Electric Vehicles (BEVs) are leading the market in terms of propulsion type, thanks to their efficiency and zero emissions. The growth of BEVs is supported by decreasing battery costs and government policies aimed at reducing reliance on fossil fuels — But this is where this “Hell in a Cell” BEGINS (ting-ting-ting).
TL;DR
Ola Electric, with its bold claims and massive manufacturing facilities like the Futurefactory, has certainly captured the public's imagination. Yet, this has also set high expectations, where anything short of revolutionary can be seen as a shortfall. The company's initial promise of redefining the EV sector with its scooters has been met with mixed reviews, with some customers voicing concerns over product quality, software glitches, customer service issues and the random FIRE spree-EV. These growing pains, while not uncommon in the startup world, highlight the immense pressure Ola Electric faces in living up to its own hype. Bhavish’s Last Dance has to be iconic before IPO or the Indian startup ecosystem is watching…
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HATE ME. BRAKE ME. STILL NOT GUILTY. (THE OLA HIDE/INSIDE…)
OLA is NOT a cab service company anymore, OLA is a funny company. OLA’s newly launched “Prime Plus” is an expensive cab service (feature) where they’re claiming to give cleaner cars, better drivers & no-cancellations policy.
Wait a minute…
Isn’t this what Ola was supposed to do in the first place? If you circle back to your bare minimum idea that you climbed these huge inflated valuations on, then what’s the reflection you’re trying to portray?
And what this justifies “OLA” stand for right now?
Bad and untidy cars,
Bad-behaviour drivers
who will call you, and ask you what money is being displayed on your app and what’s the mode of payment & CANCEL. Why? No customer satisfaction. Only convenience.
Funny.
It's just an attempt to keep the boat afloat. A business operates on the exchange of prices; the cost they bear by making and running a cab service platform doesn't confirm customer satisfaction.
They forget the basic business-building rules: Profitability + Customer satisfaction. This is their second attempt to hold the front with Ola Electric.
There's no hate, but rather a line of questioning to give them a realistic picture of how businesses are established and run in India. Only time will tell...
