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Old 27th June 2022, 12:20   #1
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Ola shuts down its used car business

Ride-hailing firm Ola, has shut down its used car business within 8 months of its launch.

Ola shuts down its used car business-ola1200x800.png

According to Ola, the company has reassessed its priorities and decided to shut down Ola Cars and quick commerce arm Ola Dash. The infrastructure, technology and capabilities will now be repurposed towards growing its Ola Electric sales and service network.

Ola launched its used car platform called Ola Cars in October 2021. It was reported that last month, the company closed down its operations in five cities, following the exit of CEO Arun Sirdeshmukh.

Ola Cars was operating through 300 centres spread across 100 cities. It is said that the company even had plans to hire over 10,000 people to handle vehicle diagnostics, service, support and sales.

Source: ET Auto

Link to Team-BHP News

Last edited by TusharK : 27th June 2022 at 12:21.
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Old 27th June 2022, 12:25   #2
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Re: Ola shuts down its used car business

Good riddance!
These aggregators are burning crazy VC money buying up cars at unrealistic prices and then letting them sit because nobody will buy them at those rates. In an already supply constrained market, they're making it worse.

Great time to be a seller though. Make hay while the sun shines !
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Old 27th June 2022, 12:27   #3
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Re: Ola shuts down its used car business

Their primary cab business is making heavy losses. Used car business shut down.

EV scooters are plagued with issues and Bhavish is in a different zone already giving sneakpeaks of the electric car getting launched next year.

Wonder what keeps them going? VC money? As I don’t see any profitable business yet from them. Specially cab business even after 10+ years is loss making?

A case study on their cab business going downhill. Source: Think School YouTube channel

Last edited by SoumenD : 27th June 2022 at 12:30.
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Old 27th June 2022, 12:29   #4
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Re: Ola shuts down its used car business

That’s good - I tried booking an evaluation with them a few times, each time nobody bothered to call at the appointed time, and would call 5-6 hours later. Super annoying.

On a side note - I’m sure this news would make Sunita quite sad
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Old 27th June 2022, 12:42   #5
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Re: Ola shuts down its used car business

Good, they are not burning money on something that is already dead. But, I seriously doubt what Ola/Uber can do in the next few years. A ride never gets booked, there are hardly any vehicles like in the past and to top it all, the crazy prices. They are charging more than 50 rupees per km during rains and heavy traffic. Doesn't look sustainable to me. The business experts can comment but for me, there is something like 'makes sense' and that is out of the window with these aggregators right now.
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Old 27th June 2022, 12:44   #6
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Re: Ola shuts down its used car business

Quote:
Originally Posted by TusharK View Post
According to Ola, the company has reassessed its priorities and decided to shut down Ola Cars and quick commerce arm Ola Dash. The infrastructure, technology and capabilities will now be repurposed towards growing its Ola Electric sales and service network.
A classic case of flashy PPTs luring investors to pump in money and realising that they will not get there ever.

Frankly speaking, I actually applaud the pace of decision making (reversal, to be precise) in this case.
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Old 27th June 2022, 13:20   #7
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Re: Ola shuts down its used car business

I am not surprised. While trying to sell my car in OLX, Ola and Cars 24 last November, I received immediate calls and 1 day inspection from OLX and Cars 24. Ola after I enquired multiple times there was no response. Then they called me 2 months after I sold the car and kept calling me minimum 10 times (different guys) though I told them that the car is already sold and not to call me again.
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Old 27th June 2022, 15:35   #8
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Re: Ola shuts down its used car business

Any idea what happens to the cars sold to them and they are yet to find buyers? Fire sale to local used car dealers?And what will the sellers (who are holding the delivery note from Ola used cars) do to follow up for ownership transfer if this division is shut down?

Problem with these aggregators is they want to do middle man work with super natural profits and very less service exactly like a local used car dealer but in a huge, scalable basis and monopolize by burning the money. Glad I retained my car and didn't sell to these aggregator companies and used car dealers.

Used car market needs to be regulated tightly and usage of technology in ownership transfers is needed to avoid the shady practices in this sector.
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Old 28th June 2022, 11:47   #9
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Re: Ola shuts down its used car business

As a beneficiary of the cash they burnt, am not surprised. They bought my car (Ford Ecosport) and sold it 4 months later for 1 Lakh less (thanks to the timing of Ford's exit announcement). Thankfully RC transfer was complete. I pity the people who relied on their 1 year warranty and free service claims and bought cars from them. Hope they will honour those claims.
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Old 28th June 2022, 15:37   #10
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Re: Ola shuts down its used car business

This is a good decision. EV's are the next big thing and they want to go all out there. The ride hailing business is here to stay and if Uber decides to exit, Ola will have a free run.

I don't see any new company entering this space so Ola as a business should survive with big VC backing. They have an IPO planned later this year so this is them trimming the fat. Bhavish did mention the below in a June 3, 2022 article.
Quote:
Our ride hailing business is very profitable.
Source: https://www.indiatoday.in/business/s...962-2022-06-03
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Old 28th June 2022, 17:35   #11
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Re: Ola shuts down its used car business

I feel sad for the hundreds of people who will be unemployed or their businesses shut down because some people in suits do planning inadequately & without foresight. For Ola this might just be "restructuring", "optimisation", "reallocation" & an extra slide in the PowerPoint presentation or a bullet point, but for some people, it is their life, bread & butter.
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Old 28th June 2022, 17:42   #12
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Re: Ola shuts down its used car business

You can't have businesses with conflicting interests.
Cab hailing: No one needs to buy a car (or personal mobility) again
Used car and EVs: Come and buy your cars/scooters with us.

Last edited by Guna : 28th June 2022 at 17:46.
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Old 29th June 2022, 07:17   #13
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Re: Ola shuts down its used car business

I wonder why even now this morning, the OLA used car ads and banners are flashing on Team BHP.
(See screenshot)
Considering they are shutting down shouldnt they just disable all their ad banners from everywhere?
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Ola shuts down its used car business-2f2bd2993f1c46a5a3dc5ea525626d97.png  

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Old 29th June 2022, 10:07   #14
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Re: Ola shuts down its used car business

Quote:
Originally Posted by shankar.balan View Post
I wonder why even now this morning, the OLA used car ads and banners are flashing on Team BHP.
(See screenshot)
Considering they are shutting down shouldnt they just disable all their ad banners from everywhere?
Maybe inventory with them? Or one last attempt to revive?
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