When we wrote last week about Ola switching from Google Maps to its own Krutrim AI-powered Ola Maps, we speculated that, apart from the Rs 100 crore that Ola CEO Bhavish Aggarwal said the company would save annually from moving out of the Google API, this opened the floodgates of GPS apps and the advertising opportunities that lie therein.
And sure enough, Google announced on Wednesday that it would be slashing its API fees for Indian clients by up to 70% starting from August 1, only for Agarwal to announce Ola Maps’ pricing structure in a direct challenge to the tech giant.
In a post on X slamming Google Maps’ ‘belated’ price cuts, Aggarwal laid out a roadmap for Ola Maps prices, writing in part, “Starting today, our pricing would be: 5M FREE API calls/month for ALL. This will cover almost all startups in India! 50% of Google's reduced prices for larger volumes; 2 years FREE for anyone signing 3+ year commitment; 3 years FREE for startups & SMBs on ONDC; While all main APIs are supported by Ola maps today, we will be feature complete for all kinds of APIs, SDKs and niche use cases by Dec.”
As promised, here's our response to https://twitter.com/googlemaps?ref_src=twsrc%5Etfw">@googlemaps ‘belated’ price cuts. It’s time we build world class alternatives to big tech giants and empower Indian innovation! I’m very excited to announce a further reduced pricing structure and our future product roadmap for Ola Maps… https://t.co/zzuC90Qy03">pic.twitter.com/zzuC90Qy03
— Bhavish Aggarwal (@bhash) https://twitter.com/bhash/status/1813923659339452498?ref_src=twsrc%5Etfw">July 18, 2024
Referring to that self-same article on the Ola Maps roll-out, Abhishek Upadhyay, SVP, Digital Innovation and Strategy at HiveMinds, says, “I mentioned that ‘I think Google Maps is doing a stellar job, but I think this is now blown wide open in that sense because a new competitor has come in.’ What we see playing out in the market now is a natural reaction to this competitive structure change. Incumbent players must revise their margins and secure their moat and existing clientele to avoid any switches. The customer wins, both from a pricing point of view and by being able to shop around for innovation and better customer service.”
While Google Maps doesn't charge the end-user for searching their app, the app has earned billions of dollars through API fees for companies that require customized Maps for their business (like ride-sharing services for instance), advertising revenue (displaying company logos on their user Maps), and ad-sharing programs. These efforts earned Google Maps a cool $ 11.1 billion in 2023.
While Ola Maps is still in the pre-advertising stage, it’s already signed some significant clients, starting with Ola Cabs itself, one of the largest ride-sharing platforms in the country. The partnership with ONDC (Open Network for Digital Commerce) to offer free access to Ola Maps APIs for all startups and small businesses on ONDC for three years is also significant.
Tejas Maha, Media Group Head, White Rivers Media, says Google's decision to slash Google Maps Platform API fees for Indian developers signifies a strategic move to democratise access to mapping tools, and that this initiative empowers local developers in the face of competition from platforms like Ola Maps.
“While aimed at fostering innovation through significant discounts, it remains to be seen whether similar advantages will be offered to brands and advertisers using Google Maps for marketing soon. This move underscores Google's commitment to fostering digital growth in India's developer community, potentially reshaping how mapping technology is utilised across industries.”
