SUMMARY
In a statement, a spokesperson of Ola Cabs said that the startup has reassessed its priorities and is highly focussed on the Indian market
Ola drivers in Australia received an email informing them about the abrupt closure and forbidding them from taking passengers after April 12
Ola recently claimed its India mobility business broke even with ‘segment-adjusted’ EBITDA of about INR 250 Cr in FY23 as against an EBITDA loss of INR 66 Cr in the year-ago period
Amid multiple Australian news outlets reporting about Bhavish Aggarwal-led ride-hailing giant Ola Cabs’ exit from the country, the startup said it is shutting down its overseas ride-hailing business in the UK, New Zealand, and Australia.
In a statement, an Ola spokesperson said on Tuesday (April 9), “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.”
“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,” the spokesperson said, adding that the startup is highly focussed on the Indian market.
As per a report by Financial Review, Ola drivers in Australia received an email informing them about the abrupt closure and forbidding them from taking passengers after April 12.
“You must destroy any and all Ola materials, stickers and labels, and copies of Ola permits you may have in your possession or control and remove all Ola stickers or labels from your vehicle,” the email reportedly stated. “From 12th April 2024, you are not entitled to continue taking passenger bookings on Ola’s licence or permit or using Ola materials.”
Ola’s exit from the country comes six years after it entered the market in 2018.
As per reports, Ola is laying off the employees as it exits these international markets. The Transport Workers’ Union in Australia reportedly said it was seeking an urgent meeting with Ola to ensure its drivers were paid all their owed wages.
The development comes at a time when Aggarwal has been strengthening his India playbook across entities – Ola, Ola Electric, and most recently, Krutrim. However, while Ola has been emphasising its emobility ambitions, it is yet to meaningfully integrate electric vehicles (EVs) in its fleet.
Ola recently claimed that its India mobility business broke even with ‘segment-adjusted’ EBITDA of about INR 250 Cr in FY23 as against an EBITDA loss of INR 66 Cr in the year-ago period. The revenue of its India mobility arm jumped 58% year-on-year to INR 2,135 Cr in the year ended March 2023, the company said.
Meanwhile, US-based Vanguard once again slashed the valuation of Ola Cabs recently by 29% to $1.88 Bn on its books from $2.65 Bn earlier.
