Ola Cabs, a prominent player in the ride-hailing industry, is gearing up to withdraw from all its current international markets, including the UK, Australia, and New Zealand, by the end of this month.
The company has commenced notifying users about the forthcoming closure, with operations slated to conclude in Australia starting April 12. Ola had initially unveiled its expansion into Australia and New Zealand back in 2018.
Reports from Australian media outlets had previously indicated the cessation of Ola's services in the country. The Australian Financial Review referenced an email dispatched to Ola's drivers, instructing them to remove all associated branding and refrain from accepting bookings under its permits effective April 12. Additionally, News.com.au cited an email sent to customers informing them of the firm's decision to discontinue operations from the same date.
A spokesperson for Ola highlighted the growing emphasis on electric mobility, not only in personal transportation but also within the ride-hailing sector, underscoring significant opportunities for expansion within India. In light of this strategic shift, the company has opted to reevaluate its priorities and shutter its overseas ride-hailing business in its present form.
Earlier in January, Ola Cabs' CEO, Hemant Bakshi, had articulated the company's plans to focus on electrifying its fleet and enhancing its premium offerings to drive future growth. The company has already procured approximately 8,000 electric scooters from its sister firm, Ola Electric, slated for deployment in bike-taxi services.
ANI Technologies, the parent company of Ola Cabs, reported profitability based on earnings before interest, taxes, depreciation, and amortization (EBITDA) in FY23, achieving a profit of Rs 250 crore compared to an EBITDA loss of Rs 66 crore in the preceding fiscal year.
Despite challenges, the firm experienced a noteworthy 58% surge in total revenue, amounting to Rs 2,135 crore in FY23, coupled with a significant 65% reduction in overall losses, totaling Rs 1,082 crore.