Local digital navigation company MapmyIndia has referred to the announcement of Ola-parent company ANI Technologies producing a navigational map of India as a “gimmick” and questioned their claims.
Following the legal notice that MapmyIndia sent to Ola Electric, CEO and Executive Director Rohan Verma of MapmyIndia first spoke with PTI. Based on the company’s financial records, he questioned Ola’s assertion that the map was provided by a startup called Geospoc Pvt Ltd, which was later acquired and became a subsidiary of ANI Technologies. This is because creating a digital navigation map of a large country like India requires significant financial resources and specialised knowledge.
Verma refuted any claim that Ola Maps’ subpar quality posed a risk to the company’s operations.
“We don’t see a good product coming from there, so we don’t see a business risk.” Numerous people are expressing dissatisfaction over Ola’s redesigned taxi and electric vehicle apps, claiming that the maps are poor quality and causing issues for users. The product’s quality is what matters, he continued, even though everyone is aware that they are just additional gimmicks and announcements.
“Ola strongly refutes the baseless and motivated statements made by MapmyIndia,” an Ola spokesman stated when contacted. They are a blatant display of the business’s desperate attempts to discredit its rivals in order to remain relevant.
The company’s single-product business has obviously been surpassed by more advanced and capable competitors. Ola now has to provide evidence to support their position as they replied to MapmyIndia’s legal notification. Ola is committed to upholding the integrity of its operations and will do everything is necessary to safeguard its interests.
Three days prior to the publication of Ola Electric’s Red Herring Prospectus, on 23 July MapmyIndia served Ola with a legal notice for violating the terms and conditions of the license Ola Electric had signed with the company in 2021 to use APIs (application programming interfaces) and SDKs (software development kits) for navigation.
According to Verma, ANI Technologies and MapmyIndia inked a license agreement for the use of map data back in 2015.
The maker of electric two-wheelers Ola Electric said in its RHP that a very tiny firm called Geospoc Pvt Ltd. is the owner of and provides Ola Maps to Ola Electric.
“One can and should see Geospoc’s bona fides and investments, or actually the lack of them, whether before or after the acquisition by Ola, and then add on the context that Ola Electric licensed Mapmyindia APIs and SDKs…then one really wonders as to the veracity and bona fides and quality and accuracy of Ola’s claims about Ola Maps,” Verma stated.
According to MapmyIndia, Ola Electric licensed its SDKs and APIs, embedded them, and integrated them with their software.
It is common knowledge that creating maps is a major endeavour. Long-term time, money, and expertise investments are necessary. There are only few players worldwide that have sustained or excelled despite many trying. Let alone someone who has been actively exploiting map data, APIs, and SDKs of another company for several years, it is just not conceivable for someone to suddenly claim that they have generated maps without the proper credentials and track record “explained Verma.
He also questioned Ola’s assertion that Ola Maps were created using OpenStreetMap.
“Any well-meaning Indian who visits www.openstreetmap.org will see why it shouldn’t be utilised for themselves. The lack of accuracy in the maps created by these competitors will undoubtedly be a major complaint. Making a map that is accurate is not simple. Regarding the products, Verma advised consumers to exercise extreme caution when purchasing these flashy, Fly By Night items.
Speaking on the business’s financial results for the June 2024 quarter, Verma stated that CE Info Systems, the firm that owns the MapmyIndia brand, has had a successful start to the year.
“We are on pace to meet our revenue target of Rs. 1000 crore by the end of the 2027–2028 fiscal year. Since we are an annual company, our quarters can be irregular,” he explained.
In the first quarter that concluded on June 30, 2024, CE Infosystems reported a 12.1% increase in consolidated profit after tax to Rs 35.9 crore. In the same time last year, the company declared a net profit of Rs 32 crore.
From Rs 89.4 crore in the June 2023 quarter to Rs 101.5 crore during the reporting quarter, the consolidated revenue from operations increased by 13.5%.
“I believe we had an open order book of Rs 1300 crore at the end of last year, up from Rs 900 crore the year before. These are the indicators of the revenue growth. Based on the order book history, it’s reasonably simple to forecast growth in our revenue,” Verma stated.
He declared that the business will now venture into other markets, initially concentrating on nations in South East Asia.