What is happening with Ola? This has become the biggest question amongst the startup ecosystem. What was once considered a successful startup is now getting treated as a failed startup. Recent numbers tell a clear story: falling rankings, shrinking market share, declining ride volumes, and a rapid collapse in its EV leadership. Investor confidence has eroded, users are uninstalling, and competitors are quietly but decisively taking over the very segments Ola dominated. So, what went wrong? In this deep dive, we’ll understand and examine the underlying forces most people are missing, the operational cracks, strategic missteps, shifting market dynamics, and the silent signals that explain Ola’s decline far better than headlines ever could.
Recent EV sales data shows a trend that has now been visible for almost a year. Ola Electric is struggling to regain momentum. In November, Ola sold just 7,567 electric scooters, accounting for only 7.2% of India’s EV two-wheeler market. To understand the importance of this fall, rewind to January: Ola sold 22,656 units and controlled nearly 25% of the market, reclaiming the No. 1 position and signalling dominance.
Now if we dig deeper to understand the reasons behind it.
• The majority of this is attributed to some reasons, such as increasing customer complaints around service and after-sales support.
• Questions on long-term product reliability and battery quality
• The rise of trusted incumbents like TVS Motor, Bajaj Auto, and Hero MotoCorp
• Competitors offering better ownership experience, dealer support, and brand legacy The Indian EV space has evolved from a new category to a trust-driven automobile market, and trust takes years, not quarters, to earn. Ola didn’t lose position because demand vanished, but the market itself was growing at double digits. Ola lost because customers moved elsewhere. Retention has become the biggest weakness for Ola.
Now, because of this fall, it makes the situation even harder for Ola. Ola Electric’s monthly sales have fallen nearly 70% from their peak, putting serious doubt around its revised annual targets. According to recent reporting, Ola now needs to sell approximately 18,888 units every month to hit its revised projection of 100,000 units for the second half of FY26. In reality, it managed to sell only 8,400 units in November 2025, less than half of what’s required to stay on track. This is a problem because, when the company consistently falls short of its own revised projections, the message to analysts, shareholders, and customers becomes clear that forecasts are not aligned with reality.
Now how competition is killing it in EV and ride-hailing. Not just in EV, Ola is losing in two segments, both in the EV market and the ride-hailing market. While Ola shifted its focus towards EV, that has diluted its strength and holding of market share in ride hailing. Uber and Rapido focused deeply and strengthened. Uber has won the cabs and rentals segments. Where did Rapido win the Everyday India?
While Ola’s operational challenges are becoming increasingly visible in the market, the financial data reveals an equally important story: the core business is weakening, and the new revenue streams are not strong enough to compensate. Ola’s ride-hailing business has historically been its backbone, and in FY24 it still contributed 87.5% of the company’s total operating revenue. But the problem here is not dependency, but the decline is the issue. Ola’s mobility revenue fell 11.3% year-over-year, dropping from ₹1,985 crore in FY23 to ₹1,761 crore in FY24.
Now when the operational performance and market share trends are struggling, the investment ecosystem also finds it as a problem. US-based asset management company Vanguard has reduced Ola’s valuation to 1.25 billion dollars, according to its recent SEC filing. That is almost an 80% drop from the peak of $7.3 billion in 2021. Now when it comes to investments, Ola is still having huge capex and investments.
So, during these situations, Ola Electric is now preparing for another move, which is raising capital. The company has recently secured shareholder approval to raise up to ₹1,500 crore through various instruments, including a further public offering (FPO), a rights issue, a qualified institutional placement (QIP), a private placement, or a mix of other securities. If a company raises funds, it boosts and fills confidence amongst the existing investors.
Let’s see how Ola will make a comeback to retain its dominant position in the market. The next 12-18 months are crucial for the company to make a strong comeback.
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