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· Posted on
April 12, 2024

Ola says "adios" to its ride sharing services in Australia and other international markets

Ola has made a very sudden announcement that it will pull out of all international markets including Australia, New Zealand as well as the UK - from today.

What's the key learning?

  • Ola struggling to make a dent in its international markets, it needed to make a strategic decision.
  • Instead of pouring more money into loss-making divisions, they decided to invest more heavily in their core, which is India.
  • The decision to shut down is immediate.

👉 Background: Ola started in India back in 2010 and hit a valuation of more than $7.3 billion USD in 2021. As part of its vision for global-ride-sharing domination, it launched in Australia and New Zealand in 2018.

👉 What happened: Now, Ola has made a very sudden announcement that it will pull out of all international markets including Australia, New Zealand as well as the UK - from today.

👉 What else: Ola has never recorded a profit, and it hasn't been able to steal market share from Uber in international markets - so now it will invest all its capital in beating Uber in its local market - India.

What's the key learning?

💡Saying goodbye to non-core markets lets companies zoom in and rule their main market.

💡Ola has made a strategic market exit so it can refocus its efforts on India, where it is facing a serious threat from Uber. Uber’s revenue in India also grew more than 50% in the past financial year, making it Ola's strongest competitor in the market.

💡By streamlining its geographical focus, Ola can focus on growing its market share and hopefully improve unit economics in its largest market.

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