MapmyIndia CEO calls Ola Maps a gimmick, warns people to be careful

MapmyIndia claims that Ola Electric licensed its APIs and SDKs, then embedded and integrated them into its software. | Image: Bloomberg

5 minutes of reading Last update: August 11, 2024 | 18:41 IST

Local digital navigation company MapmyIndia has questioned Ola parent company ANI Technologies’ claims of developing a navigation map of India and called the announcement a “gimmick”.

In his first interview to PTI after the legal notice was sent to Ola Electric, MapmyIndia CEO and Executive Director Rohan Verma disputed Ola’s claim that the map was provided by startup Geospoc Pvt Ltd, which was acquired and became a subsidiary of ANI Technologies, citing its financial filings, saying that developing a digital navigation map of a large country like India requires huge investment and expertise.

Verma denied that Ola maps pose any threat to the company’s business as their quality is poor.

“We don’t see any business risk because we don’t see any good product coming from there. People are complaining left, right and centre, about their (Ola) updated taxi app, their updated electric vehicle app, that their maps are pathetic and causing problems for users. Everyone knows that these are just another teaser and gimmicks, but the quality of the product,” he said.

When contacted, an Ola spokesperson said, “Ola strongly rejects the baseless and motivated statements made by MapmyIndia. They are clear evidence of the company’s desperate attempt to remain relevant by maligning its competitors.

“The company’s single product business has clearly lost ground to higher-end and newer players. Ola has responded to MapmyIndia’s legal notice and it is now their responsibility to prove their case. Ola stands behind the integrity of its business and will take all necessary steps to protect its interests.

On July 23, three days before Ola Electric’s Red Herring Prospectus was due to be published, MapmyIndia had sent a legal notice to Ola for violating the terms of the license agreement that Ola Electric had signed with the company in 2021 for the use of its APIs (Application Programming Interfaces) and SDKs (Software Development Kits) for navigation.

Verma said ANI Technologies had signed a licensing agreement with MapmyIndia back in 2015 for using its mapping data.

Electric-wheeler manufacturer Ola Electric in its RHP stated that Ola Maps is owned by an extremely small startup, Geospoc Pvt Ltd, which also supplies it with maps.

“One can and should see the integrity and investment by Geospoc, or rather the lack thereof, both before and after the acquisition by Ola, and then add to that the fact that Ola Electric has licensed Mapmyindia’s APIs and SDKs… then one really wonders about the veracity, integrity, quality and accuracy of Ola’s claims about Ola Maps,” Verma said.

MapmyIndia claims that Ola Electric licensed its APIs and SDKs and then embedded and integrated them into its software.

“It is a well-known fact that mapping is a serious business. It requires a long investment of time, capital and expertise. Globally, despite many attempts, there are very few players who have survived or succeeded. It is simply not possible for someone to just come and suddenly say that they have created maps without the necessary experience and goodwill, let alone someone who has been actively using third-party mapping data, APIs and SDKs for many years,” Verma said.

He also disputed Ola’s claim that it used OpenStreetMap to create Ola maps.

“If any right-thinking Indian visits www.openstreetmap.org, he will understand why it should not be used. The accuracy of maps from different competitors is something that people definitely underestimate. It is not easy to create an accurate map. When it comes to products, people should be very careful with these artificial, nocturnal products,” Verma said.

Talking about the company’s financial results for the June 2024 quarter, Verma said that CE Info Systems, owner of the MapmyIndia brand, has seen a strong start to the year.

“We are on track to achieve the milestone of Rs 1,000 crore revenue by FY2027 or FY2028. We are an annual business and quarters can be challenging,” he said.

CE Infosystems reported a 12.1 per cent rise in consolidated profit after tax at Rs 35.9 crore for the first quarter ended June 30, 2024. The company had reported a net profit of Rs 32 crore in the same period a year earlier.

Consolidated revenue from operations rose 13.5 per cent to Rs 101.5 crore in the reported quarter from Rs 89.4 crore in the quarter ended June 2023.

“We ended last year, I think, with an open order book of Rs 1,300 crore, up from Rs 900 crore in the previous year. These are revenue growth rates. It is quite easy to predict our revenue growth based on our order history,” Verma said.

He added that the company now aims to expand into international markets, initially focusing on Southeast Asian countries.

(Only the headline and image of the report may have been edited by the Business Standard team; the rest of the content is automatically generated from a syndicated feed.)

First published: August 11, 2024 | 18:41 IST