Ola Electric Enters the Gig Market and Plans to Introduce an E-Scooter for Less Than INR 40K

Nitin Konde, Varun Bhardwaj

Nov 28, 2024 — 3 min read

Ola Electric Ventures Into Gig Market with E-Scooter Under INR 40K

Ola Electric introduced a new range of affordable e-scooters, with prices starting at less than INR 40,000, in light of the prediction that India's gig economy will double in size and employ over 10 million people in the upcoming years. The market reacted favourably, as Ola Electric's stock increased 5.67% and ended the day at INR 73.47 on the BSE.

The Ola Gig, which costs INR 39,999 and is intended for gig workers who travel lesser distances, is part of the new line. With a starting price of INR 59,999, the S1 Z series provides a cost-effective substitute for the original S1 model.

Bhavish Aggarwal, the CEO of Ola Electric, wrote on X that the S1 Z is identical to the S1 but more reasonably priced. In a different post, he predicted that India's gig economy would double in size in the next years, employing over 10 million people. Regrettably, these employees are compelled to operate products of inferior quality at a significantly elevated cost.

Coming up With Four New Variants

The four new models—Ola Gig, Ola Gig+, Ola S1 Z, and Ola S1 Z+—are designed to cater to a variety of use cases, including small business owners, gig workers, and urban commuters. The Ola Gig and Gig+ will start deliveries in April 2025, and the Ola S1 Z and S1 Z+ will follow in May 2025. These models are available for reservations, with prices starting at INR 499.

"The pricing is very competitive—50-60% lower than other market options—reflecting the company's expectation of a twofold surge in demand," said Kripa Ananthan, head of design at Ola Electric. According to Ananthan, Ola Electric anticipates that the gig worker market will grow quickly, tripling from the present 5 million to 10 million in the upcoming years. Aggarwal reaffirmed in another X post that Ola Cabs and Ola Electric will collaborate to expand the use of these new products.

Competitiveness and Characteristics

Current models like Yulu's electric scooter Wynn, which costs INR 59,999 and has a top speed of 25 kmph and a range of 70 km, Kinetic Green's Zing Big B, which costs INR 75,990 and has a similar top speed of 25 kmph and a range of 100 km, and Okinawa's R30, which costs INR 61,998 and has a top speed of 25 kmph and a range of 60 km, will compete with Ola's Gig scooters.

A detachable 1.5 kWh battery powers the Ola Gig, a scooter with an IDC-certified range of 112 km and a top speed of 25 kmph. The Ola Gig+, which costs INR 49,999, has a detachable single or twin battery arrangement, an IDC-certified range of 81 km (157 km with dual batteries), and a top speed of 45 kmph for customers who need more range and cargo capacity.

Both models, which will be offered in retail and battery-as-a-service, are made with fleet operators and gig economy workers in mind. The Ola S1 Z, which costs INR 59,999, is aimed towards elders, students, and urban commuters. With a range of up to 146 kilometres, it has two 1.5 kWh detachable batteries. At INR 64,999, the Ola S1 Z+ is intended for light commercial customers and small business owners. Its performance specifications, including the detachable battery mechanism, are identical to those of the S1 Z.