Ola Cabs, a prominent player in the ride-hailing industry, has revealed its decision to cease operations in all of its existing international markets by the end of this month. This strategic move entails the withdrawal of services from the United Kingdom, Australia, and New Zealand, signaling a significant shift in the company's global footprint. In a bid to realign its business priorities and capitalize on emerging opportunities in the Indian market, Ola has initiated the process of notifying users about the impending closure of its international operations. The cessation of operations is scheduled to commence in Australia from April 12, with users receiving notifications regarding the discontinuation of services.
Earlier reports from Australian media outlets highlighted Ola's plans to exit the Australian market, citing internal communications addressed to drivers and customers. Australian Financial Review and News.com.au reported on emails sent to Ola's drivers and customers, respectively, urging them to prepare for the cessation of operations from April 12. A spokesperson for Ola emphasized the company's strategic focus on the electrification of mobility solutions, citing the immense potential for expansion in India. With a clear vision to prioritize electric mobility and enhance its offerings, Ola has opted to streamline its operations and exit the overseas ride-hailing business in its current form.
The decision to exit international markets aligns with Ola's broader strategy articulated by its Chief Executive Officer, Hemant Bakshi, in January. Bakshi underscored the company's commitment to electrification and premiumization of its fleet to drive future growth. Ola has already taken significant steps towards electrification by procuring 8,000 electric scooters from its sister firm, Ola Electric, to facilitate bike-taxi services.
Furthermore, Bakshi outlined plans to electrify the three-wheeler and four-wheeler vehicles operated by Ola, signaling a comprehensive transition towards sustainable mobility solutions. While specific timelines and details of the electrification plan remain undisclosed, Ola's strategic direction underscores its commitment to driving innovation and sustainability in the transportation sector. In parallel developments, Ola and its competitor, Uber, have introduced subscription-based plans for auto-rickshaw drivers on their platforms, mirroring the business model adopted by rival companies such as Namma Yatri and Rapido. This initiative reflects Ola's ongoing efforts to enhance driver engagement and foster long-term partnerships within the transportation ecosystem.
Despite the challenges posed by the COVID-19 pandemic and regulatory uncertainties, Ola's parent company, ANI Technologies, achieved profitability based on earnings before interest, taxes, depreciation, and amortization (EBITDA) in FY23. The company reported a significant improvement in financial performance, with EBITDA reaching Rs 250 crore, compared to an EBITDA-level loss of Rs 66 crore in the previous fiscal year.
Additionally, Ola recorded robust revenue growth, with total revenue surging by 58% to Rs 2,135 crore in FY23, underscoring the resilience and adaptability of its business model. While the company continues to navigate evolving market dynamics, its strategic decision to exit international markets underscores a renewed focus on domestic expansion and sustainable mobility solutions, positioning Ola for long-term success in the rapidly evolving transportation landscape.
