Bhavish Aggarwal-led Ola Consumer (formerly Ola Cabs) saw its operating revenue nearly halve in FY25, tumbling 42% to Rs 1,171 crore from Rs 2,012 crore in FY24, even as losses doubled to Rs 662 crore during the period, according to its consolidated financial statements sourced from the Registrar of Companies (RoC) via Tracxn. The sharp contraction came just a year after the SoftBank-backed firm had crossed the Rs 2,000 crore revenue mark, 

The core ride-hailing business bore the brunt of the decline. Income from mobility operations, which accounted for 79% of total operating revenue, fell 47% year-on-year to Rs 925 crore in FY25, from Rs 1,761 crore in FY24. OlaMoney, the company’s financial services arm offering insurance, vehicle financing, wallet services, and the OlaMoney credit card, primarily serving Ola Electric customers, also reported a 19% revenue decline to Rs 185 crore. Commerce, logistics, and other services contributed Rs 61 crore, while non-operating income of Rs 198 crore took total income for the year to Rs 1,369 crore.

Even as revenue collapsed, total expenditure for FY25 came in at Rs 2,038 crore, largely flat compared to the previous year. Driver-related costs, which formed nearly 20% of total expenditure, declined 34% to Rs 401 crore amid lower mobility volumes. Employee benefit expenses fell 39% to Rs 205 crore, marking a 42% decline from FY24. But advertising spend more than doubled to Rs 233 crore from Rs 107 crore in FY24. 

The mismatch produced a sharp deterioration in unit economics. Ola spent Rs 1.74 to earn every rupee of operating revenue in FY25. Its EBITDA margin worsened to -48.93% and return on capital employed (ROCE) fell to -31%. Net losses doubled to Rs 662 crore from Rs 329 crore in FY24.

On the balance sheet, current assets stood at Rs 1,630 crore at March-end 2025, but cash and bank balances declined more than 50% to Rs 653 crore from Rs 1,395 crore a year earlier.

Ola’s financial deterioration mirrors a structural shift in the market it once dominated alongside Uber. Homegrown Rapido, initially viewed as a niche bike-taxi operator, has captured nearly 50% of India’s overall ride-hailing market across vehicle categories, fundamentally reordering the competitive hierarchy. Rapido’s subscription-based model, which allows drivers to keep 100% of fare income in exchange for a flat daily platform fee, has reshaped driver supply dynamics, forcing both Uber and Ola to adopt similar structures. Uber CEO Dara Khosrowshahi has acknowledged Rapido as the “tougher competition” compared to Ola in India, a telling inversion of the duopoly that defined the market for most of the last decade.