On July 5, Ola announced a major shift by fully transitioning from Google Maps to its own in-house mapping service, Ola Maps. This decision follows the company’s recent exit from Microsoft’s Azure platform. Ola CEO Bhavish Aggarwal shared the news on Twitter, emphasizing the cost savings: “After Azure exit last month, we’ve now fully exited Google Maps. We used to spend ₹100 crore a year, but we’ve made that 0 this month by moving completely to our in-house Ola Maps!”

In another development, Ola Electric, backed by SoftBank Group, is advancing its efforts in solid-state battery technology. Bhavish Aggarwal announced that their electric scooters, among the best-selling in India, will be powered by these innovative cells by next year. The timeline aligns with the start of commercial production at Ola’s gigafactory in Tamil Nadu, which has been selected for the Indian government’s battery manufacturing incentive scheme.

Cost Leadership Strategy in Play at Ola

Ola’s transition from Google Maps to its own Ola Maps is a classic example of a cost leadership strategy. By developing in-house capabilities, Ola aims to significantly reduce its operational costs, previously spent on third-party services. Cost leadership is a business strategy where a company becomes the lowest-cost producer in its industry. This approach allows companies to offer lower prices or achieve higher margins, giving them a competitive edge.

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