In a startling development, India's leading mapping application, MapMyIndia, has levelled serious allegations against ride-hailing giant Ola, accusing the latter of illegally reverse engineering and co-mingling its licensed product. The accusations come in the wake of Ola's recent launch of its indigenous mapping service, Ola Maps.
According to a report by a prominent global business publication, MapMyIndia claims that Ola, which had signed a licensing agreement for its maps in 2021, has now used this access to illicitly create its own mapping product. The allegations suggest that Ola has copied MapMyIndia's data, including its application programming interface and software developer kits from proprietary sources.
MapMyIndia has reportedly issued a legal notice to Ola, alleging "illegal motive for unjust commercial gains". However, Ola has vehemently denied these accusations. The ride-hailing company reportedly stated, "Your assertion that you have developed API and map data/Ola Maps solely through open map is factually incorrect and not tenable."
It is worth noting that BW Businessworld has not independently verified the legal documents exchanged between the two companies.
The controversy stems from a 2021 agreement between CE Info Systems, MapMyIndia's parent company, and Ola Electric, Ola's electric vehicle subsidiary, for the use of MapMyIndia's data. The legal notice from MapMyIndia reportedly claims, "By indulging in such unscrupulous and illegal activities, you have acted in blatant defiance of the terms and conditions of the agreement and have further infringed the copyright vested exclusively in our client pertaining to the source code."
The launch of Ola Maps in July 2024 was heralded by Ola's founder, Bhavish Aggarwal, as a significant step towards independence from external mapping services. Aggarwal had claimed on social media platform X, "After Azure exit last month, we've now fully exited Google Maps. We used to spend Rs 100 crore a year, but we've made that 0 this month by moving completely to our in-house Ola Maps."
This legal tussle comes at a crucial juncture for Ola, as the company prepares for a Rs 6,100 IPO with a set price range of Rs 72-76 per share. Anchor investors are expected to begin bidding on 1st August.
The timing of MapMyIndia's legal notice, coming a month after Ola Maps' rollout, suggests that the mapping company had been carefully considering its legal options.
Ola, known primarily for its ride-sharing services and electric two-wheelers, has recently diversified its portfolio. The company launched Krutrim, an AI venture developing large language models and indigenous generative AI capable of understanding Indic languages. Ola's ambitious plans also include deploying its own semiconductor architecture.
As this legal battle unfolds, it could potentially impact Ola's upcoming IPO and its efforts to establish itself as a tech innovator in the Indian market.