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Company focus

Ather Energy
Product Trade-Off Medium Member-only

Should Ather push Battery-as-a-Service plans or outright purchase for Rizta buyers?

Prepared by NextSprints

13 mins
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Trade-Off Analysis Pricing Strategy Experiment Design Electric Vehicles Consumer Finance Pricing Trade-Off Battery-As-A-Service Ownership-Models
Product Management Trade-Off Question: Battery-as-a-Service versus outright purchase for the Ather Rizta

Introduction

The battery is the single most expensive part of an electric scooter, and the biggest source of buyer anxiety: "What if it dies after four years? How much will a new one cost?" Battery-as-a-Service (BaaS) addresses both. The buyer pays a lower upfront price for the scooter and a usage-based fee for the battery, typically per kilometre, through a financing partner. Ather Energy has offered BaaS-style plans on the Rizta and 450 alongside outright purchase.

The question: should Ather actively push BaaS plans for Rizta buyers, or keep promoting outright purchase as the default? This is a trade-off between lower upfront price (which grows volume) and simpler, higher-certainty economics and customer experience. I'll clarify, classify the trade-off, map the product, form a hypothesis, choose metrics, design an experiment and give a decision framework.

Analysis Approach

Treat this as a pricing and ownership-model trade-off with a test-and-learn mindset: define what we would need to see to switch the default, then design the experiment that shows it.

Step 1

Clarifying Questions (3 minutes)

  • Context: I'm assuming BaaS lowers the Rizta's upfront price significantly, with a per-km charge paid monthly. Is that roughly how our plans work?

  • Assumption: Upfront price is around ₹30,000–40,000 lower; the per-km fee is around ₹1 with a minimum monthly commitment, financed by partner lenders.
  • Business context: who carries the battery risk under BaaS?

  • Assumption: A financing partner owns the battery asset; Ather earns on the scooter and shares in the financing economics.
  • User impact: how many Rizta buyers choose BaaS today?

  • Assumption: About 12%, higher in tier-2 cities.
  • Technical: do we have usage data to bill accurately?

  • Assumption: Yes, odometer data is sent via connectivity, and billing integrates with lenders.
  • Resource: is the question for the next 12 months?

  • Assumption: Yes, decided before the festive season.
Tip

State your assumptions about plan economics clearly. Interviewers do not expect exact figures, but they do expect you to compute a rough total cost of ownership and notice who wins and loses under each plan.

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Updated Oct 31, 2026