In a recent development that has sent ripples through the Indian tech and automotive sectors, CE Info Systems, the parent company of MapMyIndia, has accused Ola Electric of copying its proprietary data to build Ola Maps. According to a report by Forbes India, the allegations claim that Ola cached and saved MapMyIndia’s data and reverse-engineered a licensed product.
The allegations surfaced on the same day Ola held a media briefing to discuss its forthcoming initial public offering (IPO). During the event, Ola Electric’s CEO Bhavish Aggarwal declined to comment on the controversy. CE Info Systems also chose not to comment when approached by Forbes India. Ola Electric has dismissed the allegations, calling them “false and misleading.”
An Ola Electric spokesperson said in a statement, “We would like to state unequivocally that these allegations are false, malicious, and misleading. Ola Electric stands by the integrity of its business practices. We will suitably respond to the notice shortly.”
Forbes India, citing a legal document sent to Ola Electric by CE Info Systems, reported that Ola Electric had allegedly duplicated MapMyIndia’s API (application programming interface) and SDKs (software development kits) to create Ola Maps. The document stated, “You have duplicated our client’s API and SDKs from proprietary sources belonging to our client to build OLA Maps. It is firmly stated that our client’s exclusive data has been copied/derived by you to further your illegal motive and for your unjust commercial gains.”
Ola Cabs, Ola’s ride-hailing arm, announced a partnership with MapMyIndia in 2015, securing a multi-year license to access its mapping data. In 2022, Ola Electric integrated MapMyIndia’s services into its S1 Pro electric scooter. However, earlier this month, Ola transitioned from using Google Maps to its in-house Ola Maps for operations, claiming this move would save nearly Rs 100 crore annually.
The IPO activities for Ola Electric are now underway, with the company setting a price band of Rs 72-76 per share for the public offering, which opens for subscription on August 2. The total market capitalization of Ola Electric is projected to be around Rs 33,500 crore.
By the end of fiscal 2024, Ola had secured a 35% market share in the electric two-wheeler segment, a significant increase from the previous year’s 21%.
In a recent post on X (formerly Twitter), Bhavish Aggarwal, CEO of Ola Cabs, announced the company’s complete transition to Ola Maps from Google Maps, emphasizing the cost savings achieved. “After Azure exit last month, we’ve now fully exited Google Maps. We used to spend Rs 100 crore a year but we’ve made that zero this month by moving completely to our in-house Ola maps! Check your Ola app and update if needed,” Aggarwal wrote.
As the allegations of data theft unfold, the implications for Ola Electric’s IPO and its reputation in the competitive tech landscape remain to be seen. The dispute underscores the critical importance of intellectual property rights and ethical business practices in the fast-evolving tech industry.
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