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Writer's pictureabhijith setty

Ola's Bold Move: Exiting Google Maps and Charting Its Own Course



In a stunning display of strategic foresight and product innovation, Ola Cabs has made a game-changing decision that's turning heads in the tech and transportation industries. Led by visionary founder Bhavish Aggarwal, Ola has exited Google Maps, opting instead to build its own navigation system: Ola Maps.

This move is projected to save the company a staggering ₹100 crore annually, while simultaneously giving Ola full control over a critical component of its service. Let's delve into the product management lessons we can glean from this bold strategy:

1. Cost-Benefit Analysis is Crucial

Aggarwal and his team clearly conducted a thorough cost-benefit analysis before making this decision. The ₹100 crore annual savings is substantial, but it's not just about cutting costs. By investing in their own mapping solution, Ola is building long-term value and capabilities that will pay dividends far beyond immediate cost savings.

2. Core Competencies Matter

For a ride-hailing service, navigation is a core competency. By bringing this in-house, Ola is taking control of a critical aspect of its user experience. This move allows them to tailor the navigation system specifically to their needs, potentially providing a superior experience for both drivers and riders.

3. Data is King

By developing Ola Maps, the company now has direct access to incredibly valuable navigation and usage data. This data can inform future product decisions, help optimize routes, and even open up new business opportunities.

4. Think Long-term

While the initial investment in developing Ola Maps was likely significant, the long-term benefits far outweigh the short-term costs. This kind of strategic thinking is crucial for sustained success in the fast-paced tech industry.

5. Dare to Challenge Industry Giants

Google Maps is the de facto standard for navigation. By choosing to compete in this space, Aggarwal is showing that with the right strategy and execution, it's possible to challenge even the biggest players in tech.

6. Vertical Integration Can Be a Powerful Strategy

By controlling more of its tech stack, Ola can innovate faster, respond to market needs more quickly, and potentially create a competitive advantage that's hard for rivals to replicate.

7. User Experience is Paramount

The success of Ola Maps will ultimately depend on the user experience it provides. This move demonstrates Ola's commitment to controlling and optimizing every aspect of the customer journey.

 

Bhavish Aggarwal's decision to exit Google Maps and develop Ola Maps is a masterclass in strategic product management. It show cases the importance of thinking big, challenging assumptions, and being willing to invest in core capabilities. As Ola continues to innovate and disrupt the transportation industry, this move may well be remembered as a pivotal moment in the company's journey.

What are your thoughts on Ola's bold strategy? Have you seen other examples of companies successfully bringing critical technologies in-house? Share your insights in the comments below!

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