Ride-hailing major Ola Cabs has decided to shut down its existing operations in the international markets like the UK, Australia, and New Zealand by the end of this month.
The company has started sending out notifications to users about the impending closure, with operations set to cease in Australia from April 12. Ola had announced its rollout in Australia and New Zealand in 2018.
Ola wants to consolidate its domestic operations and prepare for an impending initial public offering (IPO). A spokesperson for the SoftBank-backed company confirmed the development to Fe, citing the “immense opportunity” for growth in the Indian market where Ola offers a range of mobility services across hundreds of cities.“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,” the spokesperson stated.
“With this clear focus on India, we have re-evaluated our priorities and decided to wind down the overseas ride-hailing business in its current form in the UK, Australia and New Zealand,” the spokesperson added. “We remain very excited and focused on our mission to serve 1 billion Indians. As a technology-first business, leading with innovation, we are confident to spearhead the country’s mobility ambitions and lead the next phase of growth in the industry at large,” the spokesperson added.
Valued at $7.3 billion in 2021, the Bengaluru-headquartered firm counts marquee investors such as Temasek, Tiger Global, and Warburg Pincus among its backers.
The ride-hailing major plans to file for an IPO after the public listing of its electric vehicle arm, Ola Electric. The EV subsidiary is eyeing a $662 million IPO in India, as per regulatory filings made late last year.
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