Ride hailing firm Ola has taken a decision to shut down its used car business-Ola Cars which was launched less than a year back. At the same time, the company has also decided to terminate the operations of Ola Dash, its quick commerce business, sources told a leading business news channel.
In a formal statement, Ola said it has closed down its quick commerce enterprise-Ola Dash, and will remodel its cars segment to put its focus to primarily drive the company's electric division.The Ola Cars infrastructure, technology and capabilities will now "be repurposed towards growing our Ola Electric sales and service network," said the company's spokesperson as cited in the leading news daily.
"We're very excited and focused on our mission to accelerate the electric revolution in India and scale our mobility services to serve 500 million 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.
Recently, Varun Dubey, Head of Marketing at Ola Electric and Arun Sirdeshmukh, the head of Ola Cars left the company.
The shared mobility firm is working on to enhance investments in electric cars, cell manufacturing, and financial services. In the first 2 months of the current Fy23, the company's Electric division-Ola Electric surpassed revenue of Rs. 500 crore. Further, the company shall unveil its second electric scooter before the year end.
Worth mentioning that Ola that plans to go public this year is targeting to raise another round of funding at a relatively lower valuation.