Ola Cabs ceases operations in UK, Australia, and New Zealand
In a strategic move to refocus on its domestic market, India's leading ride-hailing company, Ola Cabs, has announced the discontinuation of its services in the UK, Australia, and New Zealand. The decision comes amid escalating competition in these regions and a rising demand for electric vehicles. We've reassessed our priorities and have decided to shut down our overseas ride-hailing business, the company said.
Job cuts anticipated following Ola's international retreat
The cessation of Ola's services in the UK, Australia, and New Zealand is expected to result in job cuts in these regions. An industry insider revealed to Moneycontrol that the global shift toward electric vehicles would require Ola to significantly increase its investment for transitioning its existing fleet. ANI Technologies, which operates under the Ola brand, posted a consolidated loss of ₹1,522.33 crore in the financial year 2022. In FY2023, its consolidated net loss narrowed to ₹772.25 crore.
Ola's withdrawal part of broader domestic strategy
Ola's exit from international markets is part of a larger strategy to strengthen its domestic operations and prepare for an initial public offering (IPO). The company has already begun notifying users about the impending discontinuation of overseas services. In Australia, services are set to end from April 12, with drivers instructed to remove all Ola-related labels and cease bookings under the company's permits from that date.
Ola's renewed focus on India and electrification
Ola's decision to concentrate on its domestic market is driven by the vast potential for growth in India, where it operates across hundreds of cities offering diverse transportation options. This strategic shift aligns with Ola's commitment toward electrification as a key driver for future growth. The company has already procured approximately 8,000 electric scooters from its affiliate firm, Ola Electric, for bike-taxi services.
