Ride-hailing major Ola Cabs is set to exit all of its existing international markets, namely the UK, Australia and New Zealand by the end of this month.
The company has started sending out notifications to users about the impending closure, with operations set to cease in Australia from April 12. The firm had announced its rollout in Australia and New Zealand in 2018.
“The future of mobility is electric – not just in personal mobility, but also for the ride-hailing business and there is immense opportunity for expansion in India. With this clear focus, we’ve reassessed our priorities and have decided to shut down our overseas ride-hailing business in its current form,” a spokesperson for the firm said.
In January, Ola Cabs’ chief executive Hemant Bakshi had said that the firm would focus on electrification of its fleet and premiumisation of its offerings for future growth. The firm already has about 8,000 electric scooters from IPO-bound sister firm Ola Electric to provide bike-taxis services. Bakshi said the three-wheeler and four-wheeler vehicles employed by the firm would also be electrified completely, without giving a timeline or details of the plan.
The cab business, whose parent firm is called ANI Technologies, had turned profitable based on earnings before interest, taxes, depreciation and amortisation (Ebitda) in FY23, bringing in INR 250 crore, Bakshi said, against an Ebitda-level loss of INR 66 crore in the preceding fiscal year.
The firm’s total revenue grew 58% to INR 2,135 crore in FY23, while overall loss narrowed 65% to INR 1,082 crore.
