On June 25, ola announced the closure of its two new businesses – the used car selling company Ola cars and quick commerce company Ola Dash. The company wishes to focus on its Ola Electric segment.
The company announced closing down its two businesses to focus more on its electrification journey. Ola cars, the company launched to sell second-hand vehicles, was shut down within eight months of launching. Ola Dash, an initiative that started to compete with the rising quick commerce market has also been closed. On the other hand, the company has seen significant progress in the electric sector with its venture, Ola Electric.
Arun Sirdeshmukh, the head of Ola cars, had quit earlier, and Varun Dubey, the Head of Marketing for Ola Electric. Both of them have mentioned the company’s shift of interest as a primary reason to quit. Earlier the company had decided to merge the second-hand car selling business with the electric vehicle manufacturing company but the decision was pending. Now the company will be shut down completely instead of merging. Despite the current market rise for quick commerce platforms, the company decided to back out. When other companies are urged to raise their business and start their quick commerce platforms Ola has stepped down.
In a statement, the company mentioned that their current key interest would be redirecting services developed for their car selling venture to their Electric Vehicle (EV) business. This will include the infrastructure, technology as well as networks. The company has a designed plan for employee management for both companies. This is not the first time the company has shut down its venture. Earlier, the company tried to get into the food industry but failed. In 2015, the company started a venture Ola Cafes but was closed within a year. Later it acquired the food delivery company, Foodpanda but it was shut down in 2019. The company also attempted to start a cloud kitchen company Ola Foods but is now selling kitchen equipment
It is one of the largest EV companies in the country right now. The company was started in 2017 to reduce the increasing carbon emission and fuel dependency. The company was started under the parent company Ola Cabs. In the initial days, their primary focus was to build an infrastructure suitable for EVs in the country. They started by installing charging stations at various points in cities across the country. They partnered with various Original Equipment Manufacturers (OEM).
In 2020 it acquired Amsterdam-based electronic scooter manufacturing company, Etergo. The company set up its production unit in Tamil Nadu. This manufacturing unit had an estimated cost of ₹2,400 crores and the land to be acquired was 500 acres. This was done in partnership with the Government of Tamil Nadu. The company announced the launch of its two new electric scooters which got a great response. The official vehicle delivery started on 15 August 2022. Currently, the company has two electric scooters on the market, S1 and S1 Pro. By the end of this year, the company is set to launch a new edition of the electronic scooter. The company plans to improve cell manufacturing, and financial services, and increase the pace of investments. In the first two months of FY23, the company has crossed ₹500 crores in revenue.
The company has also announced the teaser for launching an Electric car but is yet to be announced officially. The company has grown tremendously in the EV sector and is ruling the market. By shutting down the other two companies and shifting its focus, it will be benefiting the business.
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