Ola Electric

Key Highlights:

  • The electric mobility startup Ola Electric plans to launch over 200 experience centres across India.
  • In August, Ola Electric’s market share declined for the fourth consecutive month, resulting in the decision to open physical centres.
  • The total number of electric two-wheeler units sold in August was 50,346, up roughly 13% month-over-month, including Ola’s 3,421 scooters.

The electric mobility startup Ola Electric plans to launch over 200 experience centres across India by March, according to its cofounder and CEO Bhavish Aggarwal.

The company has converted its services and a few other physical touch points into experience centres, where customers can learn more about Ola products before booking them. And those centres will all be owned and operated by the company.

The co-founder and CEO Bhavish said, besides selling Ola electric bikes, the experience centres also offer vehicle servicing. “The company realized that not everyone is comfortable buying scooters exclusively online. The experience centres will allow customers to learn more about the product, take test rides and do everything else related to their purchase, which will eventually still be completed through their Ola apps. A direct-to-consumer (D2C) model will continue to be followed.”

In August, Ola Electric’s market share declined for the fourth consecutive month, resulting in the decision to open physical centres. According to Vahan and ICICI Securities data, Ola Electric now accounts for just 6.8% of the entire electric two-wheeler market.

Although electric two-wheeler sales have been increasing, sporadic fire incidents have affected the company’s sales. The total number of electric two-wheeler units sold in August was 50,346, up roughly 13% month-over-month, including Ola’s 3,421 scooters. Formerly the market leader, Ather Energy now finds itself in the top five, losing some shares to Hero MotoCorp-backed Ather Energy.

Hero Electric topped the EV 2W category in August, with 20.8% of the market, followed by Okinawa with 17%, Ampere with 12.7%, TVS Motor with 12.5% and Ather Energy with 10.4%. While analysts said physical stores would boost Ola Electric’s sales, it is still too early to estimate the incremental business.

“Despite liking the scooter on paper, many prospective customers shied away from buying Ola’s scooter because it was only available digitally. Additionally, the digital-only channel wasn’t adequate to handle the numerous service-related concerns. As a result, Ola’s move represents an eventuality that should enhance the overall customer experience, even if the booking, payment, and delivery continue to be done online. Still, it is difficult to determine the extent of the improvement.,” said Suraj Ghosh, director, mobility, S&P Global.

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