In a strategic move, Ola Mobility’s Founder Bhavish Aggarwal, and the newly appointed CEO Hemant Bakshi, announced the EBITDA positivity of Ola’s India mobility business in the fiscal year 2023. Aggarwal emphasized Ola’s commitment to serving one billion Indians and its focus on leveraging the Open Network for Digital Commerce (ONDC) for future growth.
Hemant Bakshi, former Unilever executive and Ola’s new CEO, shared insights into Ola’s vision, stating, “As a technology-first business, leading with innovation, we are confident to spearhead the country’s mobility ambitions and lead the next phase of growth in the industry at large.”
Ola’s India mobility business reported consolidated revenue for FY 23 at Rs 3,000 crores, a significant increase from Rs 2,120 crores in FY 22. The EBITDA loss, excluding discontinuous business, reduced to Rs 29 crores in FY 23 from Rs 291 crores in the previous fiscal year. Ola’s total revenue witnessed a 48% surge to Rs 2,135 crores in FY 23, compared to Rs 1,350 crores in FY 22.
Addressing questions about competition from ride-hailing apps with lower or zero commission structures for partner drivers, Aggarwal emphasized the sustainability of business models, stating, “No business model can sustain by claiming 0% commission. India hai… paise toh banane padenge.” Ola plans to increase market penetration with affordable electric scooter rides and aims to expand its ONDC arm using technology and network resources.
Aggarwal expressed optimism about the Open Network for Digital Commerce (ONDC), highlighting its potential to revolutionize digital commerce in India. He stated, “ONDC will increase the penetration of digital commerce in India dramatically.”
Ola’s strategic focus on core technologies is evident in its shift to “Ola Maps” to enhance efficiency and reduce costs. Aggarwal emphasized the importance of controlling core technologies, such as location services, and highlighted Ola’s investment in building its own mapping solution, Ola Maps, to improve traffic estimates, efficient routes, and overall user experience.