Advertisement

Ola Driven out of International Markets

Reading Time: 2 mins
By Published On: April 11, 20240 Comments

Uber has driven yet another rideshare competitor out of the market with Ola hitting the breaks on Australian operations.

Ola has announced that it has exited the Australian market, giving riders and drivers just two days notice ahead of the shut down. 

The rideshare company was founded in India in 2011 and launched into the Australian market in 2018. Since then it has also expanded into New Zealand and the UK. According to its website, Ola boasts over 150 million users via its network of over one million drivers. The app was initially considered an on-par competitor with Uber with enticing discounts capturing a user base quickly. The company offers drivers lower commission rates than its competitors, taking 15 percent in Australia, which allows drivers to make more per ride. Uber, by comparison, takes a minimum of 25 percent. 

Despite this, Uber accelerated ahead however and after a major operational scale-back in 2020, Ola is finally handing over the pink slips. 

Ola announced the news in an email to its customers on April 10. “Ola will discontinue operations in your area on 12th April 2024,” it read. “This means that you will no longer be able to book any rides through your Ola app from that date.”

The rideshare app cautioned users that scammers may take advantage of the exit. 

“You must not take any rides with any vehicle purporting to be an Ola vehicle or Ola driver from 12th April 2024,” it cautioned. “Ola has not authorised any driver or any other party to use the Ola brand or provide rides on our behalf.”

Ahead of the shutdown, the company told drivers they “must destroy any and all Ola materials, stickers and labels, and copies of Ola permits you may have in your possession or control and remove all Ola stickers or labels from your vehicle.”

A spokesperson told the Indian Express, it will be also shutting down operations in New Zealand and the UK as it focuses on an India expansion.
“Our ride hailing business is growing rapidly, and we remain profitable and segment leaders in India,” the spokesperson said.

“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 in the UK, Australia and New Zealand.”

About the Author: Rosalea Catterson

Rosalea is the Editor of Power Retail. With a keen interest in consumer behaviour and tech, she covers everything ecommerce and hosts the Power Retail Power Talks Podcast.

Share this story!

Leave A Comment

Samantha Gopal Podcast
Advertisement
Advertisement
Advertisement
Advertisement