Ola plans to launch electric scooters by 2021

Ola Electric Mobility has announced the acquisition of Etergo, as it plans to launch its electric two-wheeler in India by 2021. Following the acquisition, Ola Electric plans to build a sizable fleet of premium electric two-wheeler bikes, both globally and locally.

According to the company, the deal will bolster the company’s engineering and design capabilities through the Etergo team’s extensive vehicle development experience with manufacturers such as General Motors, Tesla, Jaguar, and BMW.

“The future of mobility is electric, and the post COVID world presents an opportunity for us to accelerate the adoption of electric mobility globally. We look forward to building the best global capabilities in engineering, design, and manufacturing for these products to be made here in India,” wrote Bhavish Aggarwal, founder, and chairman of Ola Electric in a blog post.

Both parties haven’t disclosed the size of the deal yet, however, several media reports claimed that Etergo was valued in between $80-85 million last year.

Founded in 2014, Etergo has developed an all-electric state-of-the-art AppScooter and uses swappable high energy density batteries to deliver a range of up to 240 km.

Ola Electric ran several pilots to deploy electric vehicles and charging solutions across a few cities with a focus on 2 and 3 wheelers. Besides traditional scooter manufacturers, Ather Energy is a prominent electric scooter manufacturer in the country.

Meanwhile, Ola Electric two-wheeler play will likely compete with scooter rental companies such as Bounce. It’s worth noting that Ola also invested in Vogo that competes directly with B Capital-led firm.