Ola Electric's woes just don’t seem to be stopping.
From angry customers to its mercurial CEO getting into online spats as pressure mounts, many of its problems stretch seemingly beyond its control today for it to make a quick turnaround and change the narrative. And this is hurting its valuation significantly, both in the private and public markets. Just this week, Ola Electric's price fell below its listing price.
Ola Electric can and should take credit for making EV two-wheelers common on Indian roads. It achieved this through rampant marketing, getting the word out about its product, and eventually delivering its products to eager customers as well. These did yield results in the short term as well. At its peak, Ola Electric’s vertically integrated ecosystem was a big pull, which, along with its marketing efforts, allowed it to gain nearly 53% market share in the EV two-wheeler segment.
But the strategy of moving fast and breaking things that startups usually apply to press an early mover advantage has now started to backfire, as angry customers take to social media to express their frustration with the longer wait times to get their vehicles serviced and working again.
These kinds of troubles tend to happen with startups. But when the situation is such that you can’t just fix things as you would do in an app, and you are under the scrutiny of the public markets. The need to deliver becomes absolutely detrimental.
In this week’s episode, host Rohin Dharmakumar and Praveen Gopal Krishnan try to understand Ola’s recent history, how it fared after listing on the Indian bourses, the troubles it has faced, and what the future holds.
Joining them for the episode are Jinesh Gandhi, Research Director at Ambit*, with over 20 years of experience tracking multiple sectors, and Narayan Sundararaman, an accomplished leader with over 28 years of experience in marketing strategy. Narayan has worked at Cadbury, Star TV, and was the ex-CMO at Bajaj Auto.
Additional reading:
How Ola Electric blew its lead
Ola Electric wants to take on Hero’s Splendor. But e-bikes are not e-scooters
The real reason behind Ola Electric slashing its IPO valuation in a booming stock market
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*Disclaimer: The views expressed in this podcast are solely those of the analyst and do not necessarily reflect the opinion of Ambit Capital Private Ltd. The analyst does not hold any financial interest in the securities discussed in the podcast, nor do their relatives. This podcast is for informational purposes only and should not be construed as financial advice. It is essential to conduct your own research before making any investment decisions.
This episode was produced by Hari Krishna. Mixing and mastering for this episode is done by Rajiv CN. Write to us about what you thought of the episode at twobytwo@the-ken.com.
