Business

Ola shuts down used car business Ola Cars with q-commerce platform Ola Dash to focus on EVs

Ola now aims to invest more towards its electric car, cell manufacturing, and financial services businesses

June 26, 2022

Big decision: Ola closed many businesses including used cars

Ola the ride-hailing major has announced that it is closing down Ola Cars, its used vehicle business as well as Ola Dash, its quick-commerce business. The company shut Ola Cars within one year of its launch, as it focuses on its electric two-wheeler and car verticals. Ola has so far shut down Ola Cafe, Food Panda, Ola Foods, and now Ola Dash.

The move comes at a time when Indian companies like Zomato are pouring money into the 10–15-minute grocery delivery market. Ola Dash shuts down at a time when India’s quick commerce market is all set to witness 15 times growth by 2025, reaching a market size of nearly $5.5 billion.

“Ola has reassessed its priorities and decided to shut down Ola Dash – its quick commerce business. Ola will also be reorienting its Ola Cars business to focus more on strengthening the go-to-market strategy for Ola Electric,” the company said in a statement.

It added that Ola Cars’ infra, technology, and capabilities will be “repurposed towards growing Ola Electric’s sales and service network” and said that Ola now aims to invest more in its electric car, cell manufacturing, and financial services businesses.

The total addressable market for quick commerce in India stands at $45 billion, and urban areas are driving this market on the back of mid-high-income households.

Zomato on Friday poured Rs.4,447 crore into acquiring quick-commerce grocery delivery platform Blinkit. In December 2021, Swiggy announced to pour $700 million into Instamart. Last month, 10-minute delivery platform Zepto raised $200 million, taking its valuation to around $900 million.

Ola Electric is also facing scrutiny over faulty batteries in its electric two-wheelers, among other EV players like Okinawa Autotech, Pure EV, Jitendra Electric Vehicles, and Boom Motors by the government.

The Bureau of Indian Standard (BIS), which comes under the Union Consumer Affairs Ministry, has published the “performance standards for electronic vehicle batteries” in a bid to keep strict control over the manufacturing of EV batteries.

[With Inputs from IANS]

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