Ola, a ride-hailing company has reportedly announced its decision to cease operations in its global markets, which include the UK, New Zealand and Australia, citing to escalate the competition. It was on Tuesday when the move surfaced as the company shifted its focus to the Indian market, and recognized the significant opportunities for expansion within the country's evolving mobility landscape.
In an official statement, an Ola spokesperson highlighted the burgeoning prospects in India, particularly within the electric mobility sector.
The spokesperson remarked, "The future of mobility is electric — not only for personal transportation but also for ride-hailing services. Given this strategic vision, we have re-evaluated our priorities and opted to discontinue our overseas ride-hailing operations in their current form across the UK, Australia, and New Zealand."
Ola's decision to withdraw its operational offices from the international markets came as the company aims to consolidate its resources and further concentrate on leveraging the growth opportunities in the country. The company operates across numerous locations and further offers various transportation modes that include two-wheelers, which views India as a major market for its expansion strategy.
Besides the global pullback, Ola's mobility business in India has shown promising financial results. In the fiscal year 2022-23, the business segment has reported a significant profit of Rs 250 crore, which is a notable improvement from the previous fiscal year's loss of Rs 66 crore. Furthermore, the company witnessed a robust revenue surge, with earnings escalating by 58 per cent to Rs 2,135 crore in FY23 from Rs 1,350 crore in FY22.
Ola attributed its success in FY23 to a deliberate focus on sustainable growth and profitability. "In FY23, we set ambitious goals for ourselves — not only to expand and scale but also to achieve profitability," the company stated. "While our revenue continued to soar, registering a robust growth of 58 per cent, we achieved EBITDA positivity in our mobility business in India."
As Ola redirects its attention to its home market, the company remains poised to capitalize on India's burgeoning mobility sector and drive continued growth and profitability within its domestic operations.
ALSO READ: Garena Free Fire MAX: Redeem codes for April 9
ALSO READ: Sundar Pichai to launch Gemini AI Pro: All you need to know
Inputs from IANS
