Ola has undertaken a major workforce reduction, cutting its employee base by nearly 60% between April and August 2024.
The company’s headcount dropped from 886 to 376 employees during this period, marking one of the most significant downsizing moves in India’s ride-hailing sector in recent years.
The decision comes amid intensifying competition from rivals such as Uber and Rapido, both of which have expanded aggressively in key markets.
Ola’s market share, which stood at approximately 43% last year, has now declined to between 25% and 30%.
Uber continues to hold a steady lead with around 45% of the market, while Rapido has made notable inroads, especially in the four-wheeler segment, capturing over 20% of that space.
Strategic Shift Toward Efficiency and Core Operations
Ola’s restructuring is part of a broader strategy to improve profitability and streamline operations.
Sources indicate that the company is prioritizing critical roles in operations, technology, and business strategy, while reducing redundancies in non-core functions.
The company has also accelerated its automation efforts, aiming to enhance operational efficiency and reduce costs.
These changes follow a slight revenue dip in FY24, prompting Ola to reassess its delivery model and workforce structure.
Despite the layoffs, Ola remains committed to leveraging technology as a growth driver.
It is exploring new business models, including subscription-based services and fleet partnerships, to diversify revenue streams and strengthen its competitive position.
Ola Electric Also Undergoes Layoffs
In parallel, Ola Electric—Ola’s electric mobility arm—has reportedly laid off over a thousand employees in recent months.
This marks the second round of layoffs in under five months, as the company seeks to stem rising losses and revamp its logistics and delivery strategy.
The cuts span multiple departments, including procurement, customer relations, and charging infrastructure.
Ola Electric has also automated parts of its front-end operations, aiming to improve margins and eliminate redundant roles.
The company’s recent IPO debut was followed by a sharp decline in share value, and it has faced scrutiny from regulatory bodies and consumer protection authorities.
These developments have added pressure on Ola Electric to restructure and stabilize its operations.
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