Ola Electric Scooter Dealership: Something we need after Zomato’s IPO
Popularly known for their cabs, OLA has launched Ola electric scooters but the absence of it’s dealership in India is the talk of the town.
The company is based in Bengaluru, Karnataka founded by Bhavish Aggarwal. As of October 2019, Ola was valued at about US$6.5 billion.A variety of venture capitalists including Softbank have large stakes in the company.
With the launch of electric scooters, the company is sure going to make a big change in automobile industry. Just like with the release of Tesla electric car and people preferring electric vehicles more, Ola grabbed on to the idea and put it on a vehicle which is more popular among Indians.
|Single Charge Travel||2 Variants|
Variant 1 upto 181 Km
Variant 2 upto 121 km
|Light||Twin LED Headlights|
|Space||Under Seat Space|
|Price||Around INR 1 Lakh|
|Breaks||Front/ Rear Disc|
|Max torque||50 Nm|
|OLA E Scooter Booking Amount||499 INR|
|Color||Black, red, blue, green, yellow|
The launch of the scooter
The launch is riding a massive wave of hype, so much so that the website crashed down due to overwhelming number of orders.
The registration process for prebooking for the scooter had started since July for a price as low as Rs. 499. It claimed to have over 1 lakh bookings in the first 24 hours.
On September 8 when Ola Electric started the process of taking confirmed purchase orders from the over 1 lakh potential customers who had pre-booked its S1 and S1 pro electric scooters, it was the first test for a company to start claiming that they would bring an interesting change to automotive industry.
But faced with a lot of technical glitches due to massive surge in traffic, they had to postpone the launch a week later.
This was obviously very bad for company’s image as they couldn’t live up to the hype.
Fortunately, CEO Bhavish Aggarwal apologized to everyone explaining what had gone wrong and setting a new date a week from when it was actually supposed to happen.
The window that opened afterwards was almost glitch free and they managed to sell scooters worth Rs. 1,100 crore, a figure quite impressive for a young entrepreneur.
Ola electric scooter dealership
With the prices of petrol rising up everyday, Ola couldn’t have launched it’s electric scooter at a more perfect timing.
Due to the hype that the company has created, all the business owners have been expecting the dealership to be available for the Ola electric scooter. But Ola is clearly not following traditional methods of a product launch.
Some of the key points how Ola is starting a whole new process of launching automotives:
- Pre-bookings that are so prevalent in the smartphone sector
- Absence of dealerships for sale as well as service
- Selling only on the basis of 2D pictures
You can still buy a phone online but buying a whole vehicle without even giving it a test drive, everyone was really skeptical about it. But Ola proved them wrong. The number of bookings and sales are the living proof of that.
Coming to the Ola electric scooter dealership, it’s a gain for the company but a loss, if it actually performs well, for the business owners who would want to invest in the company.
If they provide dealerships in future, they would be giving off some of the rights ofcourse but they would also make their own work a little easier. But obviously, the young entrepreneur must have something in mind that would benefit the company and the consumers as well.
It’s not exactly sure that the company would not be providing dealership for the automotive any time in the future. But right now, their goal of selling it online is to cut the Middlemen i.e. Dealers to have maximum profits and save it from the fraudulents.
Although, it’s quite unclear how are they going to manage the servicing problems without any real stores.
The new window for booking will be opening from November 1, very close to Diwali. (What a strategy!)
Let’s see what young entrepreneur has in mind. Till then if given a choice, would you invest in Ola?