Ola rideshare shuts down across Australia including in Sydney, Perth

The rideshare service had been operating across the country for six years but is now closing with little warning.

One of the biggest competitors to Uber has abruptly announced it is shutting down its services across Australia.

Rideshare service Ola sent out an email to customers, including in Sydney and Perth, revealing that it is “discontinuing operations” from April 12.

“This means that you will no longer be able to book any rides through your Ola app from that date,” the email read.

“You must not take any rides with any vehicle purporting to be an Ola vehicle or Ola driver from 12th April 2024. Ola has not authorised any driver or any other party to use the Ola brand or provide rides on Ola’s behalf.”

The email did not reveal why Ola was shutting down its services with very little warning.

An Ola spokesperson said its “ride hailing business is growing rapidly, and we remain profitable and segment leaders in India”.

“The future of mobility is electric – not just in personal mobility, but also for the ride-hailing business and there is immense opportunity for expansion in India,” they said.

“With this clear focus, we’ve reassessed our priorities and have decided to shut down our overseas ride-hailing business in its current form in the UK, Australia and New Zealand.

“We remain very excited and focused on our mission to serve one billion Indians. 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.”

Back in 2018, managing director of Ola, Simon Smith, is in Hobart to launch his new ride sharing app. He is pictured with new driver, Scott Greene of Hobart. Picture: Matt Thompson

In its email to customers, Ola explained it would be able to access customers’ account information from their app and raise any queries or issues to their customer care team for a period of 30 days until 11th May 2024 – before being permanently locked out.

It is also believed drivers were sent an email asking them to download all relevant information for tax and business purposes before the app becomes unavailable on May 11.

The Transport Workers’ Union (TWU) is calling on Ola to pay workers what they are owed following news that the rideshare company will close operations across Australia and New Zealand.

TWU national secretary Michael Kaine said the shutdown showed the urgency of getting minimum standards in place to level the playing field and protect workers.

“Workers in the gig transport economy have for too long been ripped off minimum wage and other rights, and put under deadly pressure to prioritise speed over safety when delivering food,” he claimed.

“We will seek an urgent meeting with Ola to seek the best possible outcome for affected rideshare drivers.

“Around the world, courts and governments have struggled to keep up with the rampant exploitation in the gig economy. The Closing Loopholes Bill recently passed by federal parliament is a sophisticated answer to this global crisis.”

Recently federal parliament passed legislation which will empower the Fair Work Commission to set and enforce standards in the gig economy, with laws to take effect in August.

On its website, Ola boasts it is one of the world’s largest ridesharing companies, operating in Australia, New Zealand, the United Kingdom and India.

In Australia, Ola was available to riders in Sydney, Melbourne, Brisbane, the Gold Coast, Adelaide, Canberra and Perth – but it appears users around the country have received the same email announcing its closure.

Ola announced it was launching in Australia in 2018. It aims to take Uber’s crown by focusing on rider safety and driver pay.

Ola’s app will permanently close in May. Picture: Supplied

The rideshare service was founded by Bhavish Aggarwal and Ankit Bhati in India in 2011.

“We are very excited about launching Ola in Australia and see immense potential for the ridesharing ecosystem which embraces new technology and innovation,” said Mr Aggarwal, the company’s co-founder and chief executive, back in 2018.

“With a strong focus on drivers and the community at large, we aim to create a high-quality and affordable travel experience for citizens and look forward to contributing to a healthy mobility ecosystem in Australia.”

Uber has come under increasing scrutiny. Picture: Supplied

It comes as rideshare services come under increasing pressure in Australia.

In 2022, another major competitor to Uber and a major blow to the industry saw Deliveroo’s Australian branch fall into voluntary administration after it failed to turn a profit.

Last month, Uber agreed to fork out a whopping $272 million to Australian taxi drivers in a historic world-first-class action settlement.

Uber has also come under fire from drivers about how little they are making working for the service.