Ola Pulls Plug On International Operations (Image Source: Twitter)
Indian ride-hailing giant Ola has announced its intention to shutter operations in Australia and New Zealand by the end of April, as part of a strategic refocus on bolstering its domestic business and gearing up for an initial public offering (IPO). The company has initiated the process of notifying users about the impending closure of its services in these regions.
In Australia, the cessation of operations is slated for April 12, with Ola urging its drivers to remove all associated labels and cease accepting bookings under its permits from that date onwards.
Having ventured into international markets in 2018, commencing services in Australia and New Zealand before subsequently expanding to the UK, Ola’s decision to withdraw from these regions underscores a strategic pivot towards the Indian market.
According to The Times of India report, this strategic realignment aligns with Ola’s broader goals of electrifying its fleet and enhancing its service offerings for future growth within India. The company has procured approximately 8,000 electric scooters from its sister concern, Ola Electric, to facilitate biketaxi services.
An Ola spokesperson emphasised the company’s profound belief in the “immense opportunity for expansion in India,” where it operates across numerous cities and provides a diverse range of transportation options, including two-wheelers. The spokesperson elucidated, “With this clear focus, we’ve reassessed our priorities and have decided to shut down our overseas ride-hailing business in its current form.”
The decision to exit international markets resonates with this strategic vision, allowing Ola Cabs to channel its resources and attention towards the Indian market, recognized for its substantial expansion potential.
