Ola Electric: A “Structural Reset” Amidst Market Share Slump
- Editor
- February 23, 2026
- Artifical Intelligance, Automobile, Business, Development, Global Business
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Ola Electric is undergoing a significant strategic pivot as it battles mounting losses and a sharp decline in market dominance. The company, once holding over a third of India’s electric two-wheeler (E2W) market, has seen its share plummet to approximately 4.2% to 6.3% in early 2026.
Store Reduction and Operational Efficiency
In a letter to shareholders following its Q3 FY26 results, Ola announced it is scaling down its physical retail footprint to 550 stores by March 2026, down from a peak of nearly 4,000 planned outlets and its recent count of 700. This move is part of “Project Lakshya,” a restructuring program aimed at:
- Cost Control: Reducing monthly operating expenses from ₹178 crore to ₹105 crore.
- Vertical Integration: Focusing on the development of its “Bharat Cell” and in-house motor technology.
- Service Quality: Consolidating resources to resolve 80% of service requests on the same day.
Financial Strain
The company reported a consolidated revenue of ₹470 crore for the quarter ended December 31, 2025—a 55% year-on-year decline. While net losses narrowed slightly to ₹487 crore (from ₹564 crore), the sharp drop in vehicle deliveries (down 61% YoY) has led major brokerages to issue “Sell” ratings, with stock prices hitting all-time lows in the ₹26–₹28 range.
Swiggy: “Snacc” App Shut Down Over Profitability Concerns
Swiggy has officially pulled the plug on Snacc (often referred to as Snape in early pilot phases), its standalone 10–15 minute food delivery service.
The End of Ultra-Fast Delivery
Launched as a pilot in January 2025 across Bengaluru and Gurugram, Snacc focused on high-margin, quick-turnover items like snacks, beverages, and breakfast. However, the company cited a lack of a profitable business model and challenging unit economics in the niche category as reasons for the closure.
Strategic Shifts and Regulatory Pressure
The decision follows two major headwinds:
- Regulatory Scrutiny: The Indian government recently advised quick-commerce platforms to move away from aggressive 10-minute deadlines due to concerns over gig worker safety.
- Financial Focus: Swiggy reported a widened net loss of ₹1,065 crore in Q3 FY26. The company is now prioritizing capital allocation toward its core food delivery business and its quick-commerce arm, Instamart, which faces stiff competition from Blinkit and Zepto.
Note: Swiggy confirmed there will be no layoffs; all employees from the Snacc vertical are being absorbed into other departments.
SpiceJet: A Capacity-Led Recovery
In a stark contrast to the startup struggles, SpiceJet has reported a dramatic operational turnaround, doubling its market share in the final quarter of 2025.
Rapid Market Share Gains
SpiceJet’s domestic market share surged from 1.9% in September 2025 to 4.3% in December 2025. This recovery was driven by:
- Fleet Expansion: The induction of 16 aircraft during Q3, bringing more grounded planes back into service.
- Capacity Surge: A 56% increase in Available Seat Kilometres (ASKM), which rose from 55 crore to 105 crore.
- Improved Revenue: A 77% quarter-on-quarter jump in revenue to ₹1,384 crore.
Future Outlook
The airline aims to operate over 300 daily flights and more than double its annual capacity to 220 crore ASKMs by the Winter of 2026. To fuel this, SpiceJet is targeting a fleet size of 60 aircraft through a combination of new leases and ungrounding its remaining Boeing 737 and Q-400 fleet. Despite the growth, the airline remains under financial pressure with a net loss of ₹268 crore for the quarter, though this is a 58% improvement over the previous quarter.
