Ride-hailing app Ola Mobility has shut operations of its cab business in the United Kingdom, Australia and New Zealand, according to the statement by the company. Ola Cabs, which is a wholly-owned subsidiary of ANI Technologies, said that the decision has been taken as it reassesses its priorities and focuses on domestic operations. The cab aggregator is reportedly shutting operations in Australia beginning April 12.
"Our ride-hailing business is growing rapidly, and we remain profitable and segment leaders in India. The future of mobility is electric - not just in personal mobility, but also for the ride-hailing business and there is immense opportunity for expansion in India," a company spokesperson said.
“With this clear focus, we’ve reassessed our priorities and have decided to shut down our overseas ride-hailing business in its current form in the UK, Australia and New Zealand. We remain very excited and focused on our mission to serve one billion Indians. As a technology-first business, leading with innovation, we are confident to spearhead the country’s mobility ambitions and lead the next phase of growth in the industry at large,” the company spokesperson added.
The development comes months after Ola Cabs CEO Hemant Bakshi in January this year said that the cab aggregator is focusing on electrification and premiumisation in order to drive growth. While the company has not specified any timeline for the electrification of its fleet, the cab aggregator plans to electrify two-wheelers and four-wheeler vehicles first.
According to Bakshi, as part of electrification, the company has bought approximately 8,000 electric scooters from the IPO-bound Ola Electric. Notably, Ola Electric filed its draft IPO (initial public offering) papers on December 22, last year.
"The inter-party arrangement is that Ola Electric makes the vehicle and sells to Ola Cabs or the driver at an arm’s length, largely to the drivers and Ola Cabs is responsible for building the network," Bhavish Aggarwal, cofounder, Ola Mobility had then said.
For the fiscal year ended March 31, 2023, the ride-hailing company reported EBITDA (earnings before, interest, tax, depreciation and amortization) of ₹250 crore, as against ₹66 crore in FY22. In FY23, the cab aggregator’s revenue increased by 58% to ₹2,135 crore.
Moreover, in order to premiumise its operations, the company is planning to synergise with premium offerings like Ola’s Prime+. Ola Prime+, the premium offering of Ola Mobility has over 20,000 drivers in seven cities.
Notably, in FY23, ANI Technologies posted a consolidated loss of ₹772.25 crore as against ₹1,522.33 crore in the same period last year.
Ola and rival Uber account for the majority of the market share in the country's growing ride-hailing space. However, with the presence of BluSmart, Rapido and Namma Yatri, the competition has heated up. With the growing competition, Ola and Uber, are also planning to reportedly introduce subscription-based plans for auto rickshaw drivers similar to Namma Yatri and Rapido.
