Ola Cabs, the ride-hailing company led by Bhavish Aggarwal, has announced the closure of its international operations in several countries including the UK, Australia, and New Zealand. This move comes amidst escalating competition in the global market and the mounting pressure from various governments to transition towards electric fleets.
In a statement addressing queries from Moneycontrol, Ola Cabs stated, "We’ve reassessed our priorities and have decided to shut down our overseas ride-hailing business in its current form in the UK, Australia and New Zealand...We remain very excited and focused on our mission to serve 1 Billion Indians."
The decision is expected to lead to employee layoffs in these regions, as reported by ETPrime.
An industry source highlighted to Moneycontrol the intensifying pressure to switch to electric vehicles internationally, indicating that Ola Cabs would need to significantly increase its investments to convert its existing fleets to EVs, particularly in Australia and the UK.
Meanwhile, according to a regulatory filing, ANI Technologies, the parent company of Ola, reported a narrowed consolidated net loss of Rs 772.25 crore in fiscal 2023, compared to Rs 1,522.33 crore in FY 2022.