Ola pulls plug on operations in UK, Australia and New Zealand: Report

Ola shuts down ops: Bhavish Aggarwal-led Ola Cabs is shutting down its operations in the UK, Australia, and New Zealand, according to a report by TechCrunch. This move by the ride-hailing major comes six years after expanding to international markets as it shifts focus to shoring up its domestic business ahead of an initial public offering, the report said.

The SoftBank-backed ride-hailing startup sees “immense opportunity for expansion in India,” the report said, quoting an Ola spokesperson. Domestically, Ola has expanded to hundreds of cities and offers a range of transportation options, including two-wheelers.

“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,” the spokesperson mentioned in the report added.

Ola, valued at $7.3 billion in 2021, stands as one of India's most prominent startups, with backing from major players like Temasek, Tiger Global, and Warburg Pincus. The company is gearing up to file for an initial public offering (IPO) following the successful public listing of Ola Electric, India's leading electric two-wheeler brand, which emerged as a separate entity from Ola.

Ola Electric aims to secure $662 million through its IPO in India, as indicated by documents filed late last year.

During the pandemic, both Ola and its primary competitor, Uber, scaled back their domestic expansion efforts and shifted focus towards enhancing their operational efficiency. While discussions about merging their businesses have occurred between the two companies in recent times, no agreement has been reached. Both entities maintain publicly that they have no intentions of collaborating, with Uber having sold its Indian food delivery arm to Zomato in early 2020.