Ola Electric is undergoing a painful but necessary transformation. The electric scooter giant revealed plans to let go of about 5% of its employees Friday, citing structural reforms to enhance operational efficiency. This development unfolds against a backdrop of dwindling dominance in India’s EV two-wheeler space.

Automation is at the heart of the overhaul, particularly in front-end processes, to instill greater agility and rigor. The goal? A more agile structure that prioritizes customer satisfaction and sustainable profitability.

Progress is visible in service metrics: Ola now resolves more than 80% of requests nationwide on the day they are lodged, thanks to its hyper-service initiative. Yet, harsh realities persist. Market share has nosedived from 36.7% last year to 16.1% this year, handing advantages to traditional players.

Operational hiccups, including delayed services and delivery inconsistencies, have fueled customer dissatisfaction. The second-quarter results paint a grim picture: a Rs 418 crore net loss and a 43% revenue drop to Rs 690 crore from the prior quarter.

Industry watchers see the layoffs as a wake-up call. With India’s electric two-wheeler market set for explosive growth, Ola Electric must navigate these turbulent waters by fixing core issues and innovating aggressively. The restructuring could be the catalyst for a comeback, or a sign of deeper troubles ahead.