New Delhi: Ride-sharing platform Ola has shut down its used-vehicle business Ola Cars as well as its quick-trade business Ola Dash, at a time when Indian companies are pumping money into the grocery delivery market in 10 to 15 minutes.
The company shut down Ola Cars within a year of launching as it focuses on its electric two-wheelers and upright cars.
Ola has so far closed Ola Cafe, food panda, Ola Foods and now Ola Dash.
“Ola has reassessed its priorities and decided to close Ola Dash – its fast trading business. Ola will also refocus its Ola Cars business to focus more on strengthening Ola Electric’s go-to-market strategy,” said the company in a press release.
He added that Ola Cars’ infrastructure, technology and capabilities will be “redirected towards the growth of Ola Electric’s sales and service network.”
Ola now aims to invest more in its electric car, cell manufacturing and financial services businesses.
Ola Dash is closing at a time when India’s fast trade market is expected to grow 15 times by 2025, reaching a market size of nearly $5.5 billion.
The total addressable fast trade market in India is $45 billion, and urban areas drive this market on the backs of middle to high income households.
On Friday, Zomato paid Rs 4,447 crore in acquiring fast commerce grocery delivery platform Blinkit.
In December 2021, Swiggy announced that it would pay $700 million into Instamart.
Last month, 10-minute delivery platform Zepto raised $200 million, bringing its valuation to around $900 million.
Ola Electric is also under scrutiny for 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 falls under the Union Ministry of Consumer Affairs, has issued the “Performance Standards for Electronic Vehicle Batteries” in a bid to maintain strict control over the manufacture of vehicle batteries electrical.