Ola Closes Down its Used Car and Quick Commerce Businesses

At a time when Indian companies are pouring money into the 10-15 minute grocery delivery market, Ola has shut down its used vehicle business Ola Cars as well as its quick-commerce business Ola Dash. Ola Cars was shut down within a year of its launch as the company focused on its electric two-wheeler and car verticals.

So far, Ola has closed down Ola Cafe, Food Panda, Ola Foods, and now Ola Dash. "Ola has reassessed its priorities and decided to shut down Ola Dash - its quick commerce business. Ola will also be reorienting its Ola Cars business to focus more on strengthening the go-to-market strategy for Ola Electric," the company said in a statement.

It went on to say that Ola Cars' infrastructure, technology, and capabilities will be "repurposed toward expanding Ola Electric's sales and service network." Ola now intends to increase its investment in its electric car, cell manufacturing, and financial services businesses.

Ola Dash goes out of business at a time when India's quick commerce market is expected to grow 15 times by 2025, reaching a market size of nearly $5.5 billion. In India, the total addressable market for quick commerce is $45 billion, with urban areas driving this market on the back of middle-to-high-income households.