India’s homegrown cab hailing major Ola has reported an impressive growth in revenue for the financial year ended 2016-17. As per the filings with Ministry of Corporate Affairs, the Bengaluru headquartered cab hailing company posted revenue of Rs1,286 crore in the 2016-17, compared to Rs758.23 crore posted in the same period a year ago.
Although Ola refused to divulge profit & loss numbers in the filings, the impressive spike in revenue is a strong indication about its financial resilience. More importantly, the numbers also reflect company’s strong financial footing with regards to its fierce competition with deep-pocketed Uber.
Ola and Uber are currently locked in a battle to emerge as the undisputed leader in India’s highly lucrative cab hailing market. Both companies are literally leaving no stone unturned in this high-stake battle.
Both are sitting on massive cash reserves as they have already raised significant amount of funds from various high-profile investors. However, Uber with its irresistible tag of the ‘world’s most valued startup’ has much more cash at its disposal.
Even though Uber has lost much of its sheen over the last one year after making exit from several loss-making markets, it still has the deep cash reserves to take on any worthy competitor.
Ola aggressively expanding business
To keep a check on Uber, India’s local cab hailing major is currently pursuing aggressive expansion strategy. However, its expansion strategies are not merely restricted to India alone. Earlier this year, the company launched cab hailing operations in selected Australian cities, marking its first ever foreign expansion.
Ola also acquired transportation app Ridlr for undisclosed amount in April, while it is said to be in talks to acquire food delivery brand Foodmenu. The acquisition of Foodmenu will most certainly help the company in giving push to its newly launched food delivery business.
Ola made foray into food delivery business after acquiring FoodPanda in December last year. The cab-hailing major’s entry into food delivery business surprised many analysts, but the decision clearly signalled that the company is searching for new avenues in order to push its profit and revenue.