Ola Electric, the electric vehicle arm of ride-hailing giant Ola, has been accused of data theft by CE Info Systems Ltd, the parent company of MapMyIndia. The allegations, which have been vehemently denied by Ola Electric, have sparked a legal battle that could have far-reaching implications for both companies.
CE Info Systems alleges that Ola Electric copied its data and reverse-engineered its app to create its own mapping service, Ola Maps. This, they claim, is a breach of the license agreement between the two companies. In 2022, Ola Electric had onboarded MapMyIndia to provide navigation services for its S1 Pro electric scooter, a partnership that now appears to be on shaky ground.
The news of the legal notice against Ola Electric emerged on July 29, 2024, a time when the electric vehicle firm was gearing up for its much-anticipated Initial Public Offering (IPO) scheduled for August 2.
In response to the allegations, Ola Electric issued a statement in which it categorically denied the claims made by CE Info Systems. 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, said an Ola Electric spokesperson.
The market reaction to the news was swift, with MapMyIndia's stock experiencing a surge. The stock opened higher on the exchanges the day after the news broke and at one point peaked at a 6.1% increase compared to the previous close. However, the gains were later pared, and the stock traded at a more modest increase.
The allegations and the ensuing legal battle have put both companies in a precarious position. The outcome could significantly impact their business operations and reputations in the market.
For Ola Electric, which had a 35 percent market share in the electric two-wheeler (E2W) segment by the end of fiscal 2024, up significantly from 21 percent in the previous financial year, the stakes are particularly high. The situation remains tense as both companies prepare for potential legal battles. CE Info Systems has declined to comment on the matter, adding to the uncertainty.
Meanwhile, Ola Electric has been proactive in its response, with Bhavish Aggarwal, the company's CEO, updating the pricing structure for Ola Maps with a completely free tier for five million API (Application Programming Interface) calls per month. This is not the first time that tech companies have been embroiled in legal battles over data theft. In the past, similar allegations have been made, leading to protracted legal battles that have often resulted in significant financial and reputational damage for the parties involved.
The legal battle between Ola Electric and CE Info Systems over allegations of data theft is a significant development in the Indian tech industry. The outcome of this dispute could have far-reaching implications for both companies and the industry as a whole. As the situation unfolds, all eyes will be on the court's decision and its impact on the future of these two tech giants.
