Ola Cabs to shut down operations in UK, Australia, New Zealand

Ola Cabs, an Indian multinational ridesharing company, is set to withdraw all its current international markets, including the UK, Australia, and New Zealand, by the month's end, as mentioned in a Money Control report. The decision is taken by the company as it is in the midst of rising competition, government promoting fleet electrification, and the company's strategic pivot towards prioritising the Indian market.

The company has begun sending notifications to users regarding the imminent closure, with operations in Australia slated to cease from April 12. It had initially announced its expansion into Australia and New Zealand in 2018.

As mentioned in the report, the company is re-evaluating its priorities. A spokesperson 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."

A representative from the company added, "Internationally the pressure to go all-electric is heating up. Ola Cabs will have to double its investment in these regions to convert all its existing fleet to EVs. There is rising competition too in Australia and UK."

In January, Hemant Bakshi, CEO, Ola Cabs, announced the company's strategy to prioritise fleet electrification and enhance the premium aspect of its services for future expansion. As part of this initiative, the company has procured approximately 8,000 electric scooters from public markets-bound sister firm, Ola Electric to facilitate bike-taxi services.

Earlier, Australian media had reported on the closure of Ola's services in the country.