Indian Ride-Hailing Giant Ola Exits UK, Australia, and NZ in International Pullback

Indian ride-hailing giant Ola is making significant strategic shifts as it prepares for an initial public offering, deciding to cease operations in the U.K., Australia, and New Zealand. This move comes after six years of international expansion, highlighting Ola’s renewed focus on bolstering its domestic business in India.

An Ola spokesperson emphasized the vast opportunities for expansion within India, where the company operates in numerous cities and offers various transportation options, including two-wheelers. With a clear focus on the Indian market, Ola has reassessed its priorities and opted to shut down its overseas ride-hailing operations in the aforementioned countries.

Ola, valued at $7.3 billion in 2021 and backed by prominent investors such as SoftBank, Temasek, Tiger Global, and Warburg Pincus, is gearing up for an IPO following the public listing of Ola Electric, its electric two-wheeler brand that emerged from the parent company.

Meanwhile, Ola and its primary rival, Uber, have slowed their expansion efforts in India during the pandemic, concentrating instead on enhancing their unit economics. Despite periodic discussions about merging their businesses, no agreement has been reached between the two companies. Both Ola and Uber have repeatedly stated their reluctance to engage in partnership with each other. Uber, for instance, divested its Indian food delivery arm to local giant Zomato in early 2020.

Uber’s CEO, Dara Khosrowshahi, recently expressed confidence in the company’s market share in the Indian ride-sharing market, highlighting a steadfast commitment to the mobility business. Khosrowshahi emphasized Uber’s focus on ride-sharing and expansion into new categories, positioning the company for continued growth despite competitors’ distractions and the allure of IPOs.