Ola mobility biz turns profitable, sets sights on industry leadership
₹250 crore in FY23, compared to a loss of ₹66 crore a year earlier, according to a regulatory filing. “As Ola’s India Mobility business turns profitable in FY23..our focus on sustainable growth..has also set the stage for an exciting future of expansion and industry leadership," Bakshi said in a statement. The company is now divided into three business segments—Ola Mobility, Ola Financial Services and Ola Logistics—to streamline operations.
The company looks to enter into the e-commerce space through complete electrification of its fleet. Last year, Ola launched its electric bike taxis in Bengaluru, offering rides at ₹25 for 5km and ₹50 for 10km, with plans for nationwide expansion. The e-bike service, which is a part of its larger mobility business, began with parcels, food and groceries, and expects to grow into other additional categories as well.
It also expects to establish a national charging network to support this category. The government’s push for electrification is also a big advantage for companies like Ola. Last year, Delhi transport minister Kailash Gahlot said all vehicles have to be electric after 2030 with an aim to target commercial vehicles to reduce pollution in the capital city.
“Ride-hailing is still significantly under-penetrated in India.. We can unlock significant growth if we can provide convenience, choice and affordability to our consumers," Bakshi said, adding that tailwinds are also strong for the logistics and online commerce sector. “We see this space grow to $150 billion by 2025 with the bulk of growth expected to come from tier-2/3 towns and lower SEC consumers in larger cities".
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