ZippyLlama

Why OLA not focusing on reliability?

Right now, OLA is a major player in EV scooters and is facing a lot of backlash for making it one of the least reliable scooters on the market.

Unlike other two-wheelers like Aether, Bajaj and Hero focus on reliability and add constant work to ensure their vehicles are reliable. OLA is not following this route and focusing on selling more scooters and making numbers in purchases.

I failed to understand how they would be able to sell scooters in the long run. Currently, they are the market leader and next focusing on making their vehicles reliable and making sure customer experience is good. I am still not seeing any clear improvements from the OLA CEO or the OLA team.

Usually, manufacturers will outsource their system to local manufacturers to create spare parts for their vehicles and this is a good way since manufacturers will not be able to distribute all the parts to all the places in India.

Note: I don't hate OLA at all but didn't make much sense to me why they are doing this. Maybe the market for vehicles is different and some manufacturers are just as bad as OLA when it comes to reliability example old Royal Enfield and current TATA. Where right now Royal Enfield fixed this issue and become one of the best touring bikes you can buy (including outside India).

What's your take on the whole situation with OLA?

29d ago

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DizzyLlama

Freelancer29d

I don't think Tata is bad.

I read in morning context that OLA can never be profitable as their breakeven point is after selling few million units and their growth right now is not that great.

They did this analysis from the red herring prospectus ola shared before it's ipo

Now, I am sure OLA knows this.

Also, OLA is selling more units as that generates revenue. Fixing the existing bikes results in shelling money out of their pockets

ZippyLlama

Stealth29d

When it comes to software reliability tata is just as bad as ola bt they sorted there mechanical side of things that y we don't usually hear tata cars breaks suspension and wat not.

Bt Tata is not making price cut like ola jst to sell their vehicle. so yes, even though their reliability is bad they are making good numbers.

Fixing the current fleet is very expensive that y other manufacturers do a lot of testing before releasing their product. But for them to sell their vehicle in a profitable scale they really need to make it at least reliable enough and fix the current model issue so more organic purchases are made.