Ola Shuts Down Used Cars And Quick Commerce Business; Plans To Focus On EVs
The company claimed its ride-hailing business is delivering its highest ever GMV month on month along with profitability
Shared mobility major Ola has shut its used car division Ola Cars within eight months of its commencement, as it sharpens its focus on its electric vehicle and mobility business.
The ride-hailing major has also shut Ola Dash, its last-mile delivery business along with the used car business, said people aware of the development.
The company spokesperson confirmed the development and said, Ola has reassessed its priorities and decided to shut down the quick commerce business. The Ola Cars infrastructure, technology and capabilities will now “be repurposed towards growing our Ola Electric sales and service network,” the spokesperson said.
The company claimed its ride-hailing business is delivering its highest ever GMV month on month along with profitability, and its young EV business has already become India’s largest EV company within months of launch.
“We’re focused on our mission to accelerate the electric revolution in India and scale our mobility services to serve 500mn Indians. With our strong balance sheet, we’re increasing our pace of investments and growth into new areas like electric cars, cell manufacturing and financial services,” added the spokesperson.
Ola launched its used cars platform last October and appointed Arun Sirdeshmukh as its chief executive.
It was to rival the likes of Spinny, Droom, Cars24 and Olx.
However, last month, Sirdeshmukh quit the company. The same month, the company closed operations in five cities, Hindu Business Line reported citing sources.
Ola Cars had plans to expand into 100 cities with 300 centres. It also had plans of hiring over 10,000 people across areas like vehicle diagnostics, service, support and sale. Most people on board Ola Cars are now likely to be absorbed in the Ola Electric business.
The shutting down of used car operations happens at a time when the used car market in India is booming and scaling new peaks.
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