Ola is a company which has had a lot of problems to face in recent years. The company since its inception has done a lot of things that have gone right for the Bengaluru-based cab aggregator. Ideas such as lending money for the cabs and paying them all at once, entering the food-tech business, looking at gaps and addressing them immediately, innovation and everything combined has kept its rival Uber at bay.
A couple of years ago, Ola had tried another out of the box idea. It was not a completely new idea but it was an idea which the other companies couldn’t dare to execute. Ola tried to implement electric cabs in Nagpur but failed miserably after multiple complaints, not from consumers but from drivers. There weren’t enough charging stations around and the charging period was huge. This initiative failed miserably. However, it was a lesson learned.
Ola has now formed a different company altogether to enter the EV market. It is looking to give a fair chance to this huge market. The company also looking to target the major problem of batteries in India. The Bangalore-based company is talking with many companies in India and around the world to solve the energy storage problem and also a huge problem with the charging stations. Ola is basically looking to build infrastructure which will help the company to achieve the target of EV.
That said, Ola is also looking to get the full benefits of the FAME-II scheme the government has launched. The government has also said that only the fleet operators will be able to cash in on the scheme to its full capacity.
Agarwal-led Ola is also talking with Automakers in India. This is to design and make Electric Cars specifically for the company. There are multiple companies Ola is talking to and these vehicles are known as ‘Specific Purpose Vehicles’. These vehicles will be, to some extent, designed by the execs at Ola. This was reported by Livemint as they cited three other unknown sources.
The other news that came out was about Ola partnering with Japanese company Hyundai. Hyundai is one of the companies which has around 17% share in the Indian car market. Ola is in talks with this company and is looking to invest around $200 million to $300 million in the EV market. Hyundai would be of great help to Ola as they have cars that worked in the Indian market. The classy yet affordable designs have helped the company get deep into the Indian market.
Ola might be able to use its expertise and collaborate with Hyundai. This collaboration might bring out multiple products for the consumers and Hyundai also will be able to get an idea of the cab-aggregators’ business.