Ola cabs pulls the plug on international business amid 'rising competition'

Cab-aggregator Ola has decided to cease its international operations in countries such as the UK, Australia, and New Zealand.

The ride hailing major pulled the plug on its foreign business due to what it said rising competition, increased government push for fleet electrification, and the company’s strategic focus on the Indian market, several media outlets reported.

The company has begun notifying users about the impending closure, with operations in Australia scheduled to halt from April 12. Ola had initially expanded into Australia and New Zealand in 2018.

ANI Technologies, the parent firm of the Ola brand, disclosed a reduction in its consolidated net loss of the cab business to Rs 772.25 crore in FY23, compared to Rs 1,522.33 crore in FY22, according to regulatory filings. While the total revenue for FY23 surged by 58 per cent to Rs 2,135 crore, the overall loss narrowed by 65 per cent to Rs 1,082 crore.

In January, Ola had announced the appointment of former Unilever executive Hemant Bakshi as its new CEO for the ride-hailing business.

The move comes months after the company outlined its plans to focus on premium services to drive monetisation and to transition its fleet towards electrification, particularly in the two-wheeler segment, utilising its own vehicles to expand market penetration.

Additionally, it was reported by Economic Times on Tuesday that both Ola and Uber have introduced subscription-based plans for auto-rickshaw drivers on their platforms, mirroring the model utilised by competitors Namma Yatri and Rapido, instead of levying booking fees or commissions.