Ola shuts in-car infotainment service launched in 2016 as global first

Industry sources say the service was not proving any value to the ride-hailing company

Mobility firm Ola will shut its in-cab infotainment service from November 15, said the SoftBank-backed company in a newspaper notice on Friday.

The Bengaluru-based firm said its parent ANI Technologies has taken measures to remove Ola Play, the tablet-based service, from the market.

An Ola spokesperson didn’t respond to a question why the service is being shut down. The development comes at a time when Ola’s rival Uber has launched its global advertising unit with the aim of building a $1 billion business by 2024, according to multiple reports. It would do this by displaying promotions within its apps, on top of cars and on the back of seats. Here tablets fixed to the back of car seats are used to show advertising and trip information, and users have control over any ads with sound. Uber is reportedly piloting in-car tablets for showing ads and other value-added services to its riders in Mumbai and Delhi.

Ola launched Ola Play in 2016 as a platform for ride-sharing with music and other value-added services. Ola Play cabs were listed separately on the Ola app and had a higher fare. "Ola Play is a world first, built in India by an Indian team, which showcases that we can do better than the best in the world and be global leaders in technology and innovation," said Bhavish Aggarwal, Ola’s co-founder and chief executive officer, in 2016.

The aim was to provide a more relevant in-cab experience to increase loyalty and retention and compete with Uber. Ola partnered with companies like Qualcomm, Mahindra and Mahindra, Sony LIV, and Apple Music to provide an interactive experience to Ola cab users.

Ola Play was rolled out across cities and thousands of cabs. It was powered by proprietary in-car and cloud technologies from Ola, by bringing advanced car controls, a choice of personalised content and a fully connected interactive experience for the user. The platform hardware was a first-of-its-kind solution built by Ola in partnership with Qualcomm.

Here tabs were installed in the cabs, but Ola started facing issues related to the advertising model. Ride-hailing app users and industry sources said the company is also shutting down this service as it was not proving any value and one could find Ola Play devices even in Uber cabs. They said a majority of the customers don’t book a cab based on infotainment like music.

Uber recently said it has formally launched its advertising division and unveiled Uber Journey Ads, an engaging way for brands to connect with consumers throughout the entire ride process. The firm said it is eager to continue working with its partners to identify best-in-class offerings – such as in-car tablet advertising – that will ensure they’re engaging with captive and engaged audiences.

Another ride-hailing firm Lyft also recently launched its own media and advertising business. It has built a suite of new products to allow advertisers to engage with its growing audience throughout their transportation journeys.