Google has made a strategic move to significantly reduce the pricing of its Google Maps platform for developers in India, slashing prices by as much as 70% starting from August 1. This reduction is part of a newly introduced country-specific pricing structure aimed at making the service more accessible and affordable for the burgeoning number of Indian developers who rely on it for their applications and services. Additionally, Google will start accepting payments for Google Maps subscriptions in Indian rupees, a shift from the current practice of only accepting US dollars. This change is expected to ease the payment process for Indian developers, aligning better with local business practices.
In a show of support for the Indian government’s initiatives, Google also announced a substantial 90% discount for developers working with the Open Network for Digital Commerce (ONDC). ONDC is a state-owned entity under the Department for Promotion of Industry and Internal Trade (DPIIT), focused on fostering open e-commerce across the country. This discount is intended to encourage innovation and support the growth of digital commerce platforms in India by making essential mapping services more affordable for developers associated with ONDC.
The price reduction by Google Maps comes on the heels of a public appeal by Bhavish Aggarwal, the CEO of Ola, urging Indian startups to adopt local alternatives like Ola Maps. Ola is offering developers one year of free access to Ola Maps, positioning it as a cost-effective and competitive alternative to Google Maps. Another local competitor, MapMyIndia, also stands to benefit from this shift in the market dynamics.
This move by Google is seen as a strategic response to protect its market share and leadership position in India, a market where it had previously not reduced its prices. This decision is notable in light of Aggarwal’s recent announcement that Ola Cabs had completely transitioned from using Google Maps to its in-house developed Ola Maps, a shift expected to save the company approximately Rs 100 crore annually.
Aggarwal’s response to Google’s pricing reduction was critical. He dismissed the move as “too little too late” and accused Google of “fake generosity,” indicating that the decision was insufficient to win back companies like Ola that had already moved to alternative solutions. His tweet highlighted his frustration and reaffirmed his commitment to reducing reliance on global tech giants.
This is not the first instance of Aggarwal challenging major international corporations. In May, he moved Ola’s workload from Microsoft’s Azure cloud platform to his proprietary cloud platform, Krutrim. This shift underscores Aggarwal’s broader strategy of developing and leveraging in-house technology solutions to gain greater control over operational costs and capabilities, thereby fostering greater self-reliance and innovation within Ola.
Overall, Google’s decision to reduce pricing and implement additional measures demonstrates a strategic response to the competitive and rapidly evolving Indian market. By significantly lowering prices and accepting payments in Indian rupees, Google aims to retain its user base amid the rise of local alternatives and changing market dynamics. This move is crucial in maintaining its leadership position as more Indian companies, like Ola, develop and promote their in-house solutions.
The substantial price reduction also comes as a response to public appeals from industry leaders like Bhavish Aggarwal, who have been advocating for the use of local alternatives such as Ola Maps. By offering significant discounts and tailored payment options, Google is making its services more accessible and appealing to Indian developers and businesses. The introduction of a 90% discount for developers working with the Open Network for Digital Commerce (ONDC) further showcases Google’s commitment to supporting India’s digital commerce landscape and aligning with government initiatives.
This strategic pricing adjustment underscores the dynamic nature of the tech industry in India, where local companies are increasingly challenging established global players. With firms like Ola and MapMyIndia gaining traction and advocating for self-reliance, Google’s response indicates an awareness of the need to adapt to maintain its competitive edge. By addressing the demands of the market and providing more localized solutions, Google is striving to sustain its dominance while fostering innovation and growth in India’s tech ecosystem.