Ola shuts down used cars business, food delivery service to focus on EVs

Shared mobility main Ola has shut its used automotive division Ola Cars inside eight months of its graduation, because it sharpens its concentrate on its electrical car and mobility enterprise.

The ride-hailing main has additionally shut Ola Dash, its last-mile supply enterprise together with the used automotive enterprise, stated individuals conscious of the event.

In an official response, the corporate spokesperson confirmed the event and stated, Ola has reassessed its priorities and determined to close down the fast commerce enterprise. The Ola Automobiles infrastructure, know-how and capabilities will now “be repurposed in the direction of rising our Ola Electric gross sales and repair community,” the spokesperson stated.

The corporate claimed its ride-hailing enterprise is delivering its highest ever GMV month on month together with profitability, and its younger EV enterprise has already grow to be India’s largest EV firm inside months of launch.

“We’re targeted on our mission to speed up the electrical revolution in India and scale our mobility companies to serve 500mn Indians. With our robust stability sheet, we’re growing our tempo of investments and progress into new areas like electrical automobiles, cell manufacturing and monetary companies,” added the spokesperson.

Ola launched its used automobiles platform final October and appointed Arun Sirdeshmukh as its chief government.

It was to rival the likes of Spinny, Droom, Cars24 and Olx.

Nonetheless, final month, Sirdeshmukh stop the corporate. The identical month, the corporate closed operations in 5 cities, Hindu Enterprise Line reported citing sources.

Ola Automobiles had plans to broaden into 100 cities with 300 centres. It additionally had plans of hiring over 10,000 individuals throughout areas like car diagnostics, service, assist and sale. Most individuals on board Ola Automobiles at the moment are more likely to be absorbed within the Ola Electrical enterprise.

The shutting down of used automotive operations occurs at a time when the used automotive market in India is booming and scaling new peaks.

To make certain, Ola has had a protracted historical past of shuttering companies as Aggarwal moved from one massive concept to the opposite. In April, the corporate reportedly let go of two,100 staff working its darkish shops for Ola Sprint. It had began cutting down the darkish shops and had put its enlargement plans on maintain, ET Prime lately reported.

Then there may be the meals enterprise. In 2015, Ola began Ola Cafes however shut it down a yr later. In 2017, it acquired Foodpanda, however shut down the enterprise in 2019 and laid off the workers. It later focussed on the cloud kitchen enterprise with Ola Foods however reportedly the manufacturers by no means caught traction and the corporate is promoting its kitchen tools.

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