Ola closes its rapid commerce and used vehicle operations to concentrate on EVs and taxi-hailing
Major in shared mobility Within eight months of its launch, Ola's used automobile segment Ola Cars was shut down as the company shifted its attention to the electric vehicle and mobility industries.According to those in the know, the corporation also closed Ola Dash, its fast commerce division.
A company spokeswoman verified the news in an official reaction and stated that Ola had reevaluated its goals and made the decision to discontinue the fast commerce operation. The statement stated that the infrastructure, technology, and capacities of Ola Cars will now "be repurposed towards increasing our Ola Electric sales and service network."
The company asserted that its ride-hailing division is generating its biggest gross merchandise value (GMV) ever month after month, along with very good profitability, and that its fledgling EV division has already surpassed other EV companies in India in size just a few short months after its debut.
Our goal is to serve 500 million Indians by scaling up our mobility offerings and accelerating the electric revolution in that country. Our progress into new markets, like the production of electric vehicles, cell phones, and financial services, is accelerating thanks to our solid cash sheet, the spokesperson continued.
In October of last year, Ola launched its marketplace for used automobiles and named Arun Sirdeshmukh as its CEO. It was intended to compete with others like Spinny.
Sirdeshmukh, though, left the business last month. According to sources cited by BusinessLine, the corporation shut down operations in five cities in the same month.
Ola Cars intended to establish 300 facilities in 100 new cities. Additionally, it planned to hire approximately 10,000 workers in a variety of positions, including sales, service, support, and car diagnostics. The bulk of the passengers in Ola Cars will probably now be employed by Ola Electric.
The closure of used automobile operations comes as India's used car sector is experiencing unprecedented growth.
Aggarwal jumped from one great concept to the next, and Ola has a lengthy history of failing ventures. 2,100 workers who ran the dark storefronts for Ola Dash reportedly lost their jobs in April. According to a recent report by ET Prime, it had begun to reduce the number of dark stores and had halted expansion plans.
The food industry is another. Ola launched Ola Cafes in 2015 but closed it down a year later. Foodpanda was acquired in 2017, however, the company was shut down and its staff was let go in 2019. Later, it concentrated on the cloud kitchen business with Ola Foods, however, according to reports, the brands failed to gain traction, and the company is now selling its kitchen appliances.