Ride-hailing platform Ola has shut down its used vehicle business Ola Cars as well as Ola Dash, its instant-commerce business at a time when Indian companies are pouring money into the 10-15-minute grocery delivery market. Huh.
The company discontinued Ola Cars within a year of its launch, as it focuses on its electric two-wheeler and car vertical.
Ola has so far discontinued Ola Cafe, Food Panda, Ola Foods and now Ola Dash.
“Ola has re-evaluated its priorities and decided to close Ola Dash – its Accelerated Commerce business. Ola will also revamp its Ola Cars business to focus more on strengthening the market-going strategy for Ola Electric, the company said in a statement.
It added that the infrastructure, technology and capabilities of Ola Cars will be “remodeled to enhance Ola Electric’s sales and service network”.
Ola now aims to invest more in its electric car, cell manufacturing and financial services business.
Ola Dash kicks off at a time when India’s accelerated commerce market is set to witness 15 times growth by 2025, reaching a market size of around $5.5 billion.
The total addressable market for accelerated commerce in India is estimated at $45 billion, and urban areas drive this market on the backs of middle- and upper-income households.
Zomato on Friday invested Rs 4,447 crore in acquiring quick-commerce grocery delivery platform Blinkit.
In December 2021, Swiggy announced a $700 million investment in Instamart.
Last month, 10-minute delivery platform Zepto raised $200 million, raising its valuation to nearly $900 million.
Ola Electric is also facing scrutiny by the government for faulty batteries in its electric two-wheelers, other EV players like Okinawa Autotech, Pure EV, Jitendra Electric Vehicles and Boom Motors.
The Bureau of Indian Standards (BIS), which comes under the Union Ministry of Consumer Affairs, has published “Performance Standards for Electronic Vehicle Batteries” to have a tighter control over the manufacturing of EV batteries.
After Ola shut down the used car business Ola Cars, the quick commerce platform Ola Dash was first introduced to BGR India.