Why Ola Electric is moving to a dealership model
What's the story
Ola Electric has announced a major shift in its business strategy, moving away from the direct-to-consumer model it has followed for five years. The company will now open its sales and services network to dealer partners across India. The move comes as Ola Electric struggles with declining sales and market share due to rising competition in the electric scooter space.
Strategic transformation
Company-owned stores to become brand experience centers
Ola Electric has said that its company-owned stores, which helped build consumer trust in the early years, will now turn into brand and product experience centers.
The company's dealer partners will handle local sales, service, and expansion across India.
This strategic pivot is aimed at improving customer service by bringing assistance closer to home as the electric vehicle market gets busier.
Growth strategy
Dealerships to improve local support and service
The partnership with local dealers is part of Ola Electric's strategy to accelerate growth and provide improved local support. The company's own stores will now focus on giving people a taste of the brand, while dealers will take care of actual sales and service.