New Ola CEO's First Big Move: Wrap Up International Ops
Ola said its ride-hailing business is growing rapidly, and remains profitable and segment leaders in India.
Ride-hailing giant Ola, which announced the appointment of Hemant Bakshi as CEO for the ride-hailing business earlier this year, said it has "reassessed priorities" and has decided to shutter its overseas ride-hailing business altogether from three international markets—the UK, Australia and New Zealand—by the end of this month, to concentrate on the domestic market.
"Our ride-hailing business is growing rapidly, and we remain profitable and segment leaders in India. 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," an Ola Mobility spokesperson told NDTV Profit.
In January, Ola announced former Unilever executive Bakshi's appointment and said the focus will be on premiumisation to monetise further, while also electrifying its fleet to offer affordable rides in the two-wheeler segment using its own vehicles to increase penetration.
Ola had also said its mobility business hit Ebitda-level profitability in the last financial year. Ola operator, ANI Technologies Pvt.'s standalone earnings, which take into account only Ola's mobility business, posted "segment-adjusted" earnings before interest, taxes, depreciation and amortisation of about Rs 250 crore, the company had said. "We're one of the few consumer internet businesses in India to be profitable at this level."
