Bhavish Aggarwal's Ola Cabs to exit international markets this month

Bhavish Aggarwal-led Ola Cabs is closing its ride-hailing services in the UK, Australia, and New Zealand. The move comes amidst heightened competition and a clear pivot towards electrification goals and market consolidation in India.

"We’ve reassessed our priorities and have decided to shut down our overseas ride-hailing business...We remain very excited and focused on our mission to serve 1 Billion Indians," Ola Cabs said.

The wind-down process

Ola has begun the process of exiting its international operations, with notifications being sent to users and drivers about the cessation of services, notably in Australia, by April 12.

The closure follows their international expansion, which began in 2018. The transition includes directing drivers to remove Ola branding and informing customers of the operational wind-down.

Competing in the domestic market 

The decision to exit international markets is also seen as a move to fortify its position against competitors like Uber in the Indian market. With Uber's revenues in India increasing by over 54% in FY23, the competitive landscape is heating up.

Ola's shift towards electric vehicles and subscription-based models for auto-rickshaw drivers represents an innovative approach to capturing a larger share of the domestic market, emphasizing efficiency and sustainability.

Future plans

Ola's focus on electrification extends beyond cars to include scooters and potentially three-wheeler and four-wheeler vehicles, aiming for a complete electrification of its fleet. The company's financial health has shown signs of improvement, with a 58% revenue growth and a significant reduction in overall losses.