Digital navigation leader MapmyIndia termed the parent company of Ola, ANI Technologies, as only a "gimmick" over its claims of developing an 'Indian' navigational map.
In an Exclusive interview with PTI, the first after a legal notice was sent to Ola Electric, MapmyIndia CEO and Executive Director Rohan Verma challenged the credibility of Ola's claim that the map was provided by Geospoc Pvt Ltd, a startup that ANI Technologies, which operates Ola had acquired. Verma pointed out, "That kind of task for creating such a comprehensive digital navigation map for a country like India, so vast and heterogeneous in nature, requires huge investment and deep expertise, which seems to be lacking when one looks at Geospoc's balance sheet.".
Verma downplayed any business threat from Ola Maps, calling it an inferior product. "There are all sorts of complaints about the refreshed cab and electric vehicle apps from Ola. It is all publicity and does not talk about the quality of the products," he said.
In reaction, an Ola spokesperson termed the allegations by MapmyIndia as totally baseless and some sort of desperation to remain in the race. He said that their single-product approach has become outdated with the more advanced and new competition. Ola has addressed the legal notice and is prepared for defense against its business practices.
The legal notice was issued by MapmyIndia on July 23, just before the release of Ola Electric's Red Herring Prospectus. It was on account of a breach of the 2021 licensing agreement with continued usage of MapmyIndia's APIs and SDKs for purposes of navigation by Ola Electric.
Verma also took a potshot at Ola for relying on OpenStreetMap for the development of Ola Maps, saying that its accuracy is dicey. He explained, "Developing a reliable map is complex and resource-intensive, so it is quite implausible that any new player can claim success without getting a taste of success.".
On the financial front, Verma said that MapmyIndia's parent company, CE Info Systems, was off to a good 2024 start. This will achieve a revenue goal of Rs 1000 crore by FY2027 or FY2028. Profit after tax of CE Info Systems rose 12.1% to Rs 35.9 crore in the quarter ended June 30, 2024, from Rs 32 crore in the same quarter last year. Revenue came in at Rs 101.5 crore, an increase of 13.5 per cent over Rs 89.4 crore in the September quarter of the previous fiscal.
The international foray will be undertaken on priority now, Verma said, adding that this would initially cover South East Asia.
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