- ByStartupStory | April 10, 2024
In a strategic move aimed at consolidating its position in the Indian market, Ola Cabs has announced the cessation of its overseas ride-hailing operations in the United Kingdom, Australia, and New Zealand. The decision comes as the company shifts its focus towards the burgeoning opportunities in its home country.
An Ola employee, speaking on condition of anonymity, revealed, “The company had been losing market share in Australia and New Zealand, in particular, to its bigger rival, Uber.” Confirming the move, Ola’s official statement emphasized the company’s commitment to growth and innovation in the Indian market.
“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,” the statement read.
Ola’s decision to discontinue its operations in the UK, Australia, and New Zealand signifies a strategic shift in its priorities. The company aims to capitalize on the burgeoning electric mobility sector in India, with a particular focus on e-bike taxis using Ola Electric scooters.
“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,” the statement added.
This move aligns with Ola’s recent endeavors to introduce e-bike taxis in India, with pilot tests already underway in several cities. The company plans to integrate this option into the Ola Cabs app, catering to a broader user base in the near future.
However, Ola’s holding company, ANI Technologies, reported a consolidated loss of Rs 772.25 crore and revenue of Rs 2,799.38 crore for FY23. The company faces stiff competition from Uber, as well as emerging electric vehicle (EV) companies like BluSmart, which have rapidly expanded their offerings in the market.
The rise of new entrants, particularly BluSmart and QuickRide, has been hailed by some users for their emphasis on safety and improved customer experience compared to Ola. In Telangana, Ola and Uber drivers recently launched a ‘No AC campaign’ amid scorching summer temperatures to pressure the companies to raise fares on the app.
