Ola stops service in international markets; to focus on India

The ride-hailing brand Ola Cabs has decided to stop all operations across its existing international market comprising the United Kingdom, Australia and New Zealand by the end of April 2024. Reasons cited include a rising demand for electrification of public vehicles across countries, increasing competition in the market segment and the company’s decision to focus on India.

The firm is currently issuing notifications regarding its decision to shut down service in the overseas markets. Operations in Australia will stop April 12 onwards. Ola drivers in that country have been notified by email about the sudden closure, with a directive that they must not book passengers after that date. The company had decided to shut shop in Australia and New Zealand way back in 2018.

In a statement to the media, the Bhavish Aggarwal-led company iterated that its priority right now lay in focussing on the Indian market. Keeping in mind that the future of mobility was electric — not just in the space of personal mobility but also for the ride-hailing business — the company recognised there was an “immense opportunity for expansion in India” and in turn decided “to shut down our overseas ride-hailing business in its current form”.

Electrification of its fleet has been a priority for Ola Cabs in recent times and is considered to be a step to ensure growth in the right direction. The company has already made a start with its bike-taxis, with around 8,000 electric scooters from its IPO-bound sister concern Ola Electric operating on road. Although the company plans complete electrification of vehicles — cabs as well as autorickshaws — a deadline for the same is yet to be set.

ANI Technologies, which operates the Ola brand, revealed recently that its consolidated net loss had tapered down to Rs 772.25 crore in the fiscal year 2023 from Rs 1,522.33 crore the year before.