Ola registers a net loss of Rs 4,898 crores in Year Ending 2017
Ola, the cab hiring app, registers a widened loss of Rs 4,898 for the year 2016-17. Though its income has increased up to 70% during the same period, the losses have increased as compared to the previous fiscal year.
Ola is facing tough competition with American rival Uber to have a market leadership in India. In the year 2015-16, the company had registered a loss of Rs 3147.9 cores which makes it apparent that last year’s loss was more.
As per the document filed with Registrar of Companies, Ola witnesses a 70% rise in its income making around Rs 1380.7 crores in 2016-17 from Rs. 810.7 crores in 2015-16. The company is run by ANI Technologies. Some of the documents from Tofler reveals that its one-time loss of Rs 1095 crores in 2017 was due to investments on modification of its financial instrument. Not only this, there was also some increase in its employees’ related expenses and finance costs.
A few other ventures of Ola include Ola Fleet Technologies, Zipcash card service, Ola electricity Mobility and Ola Skilling. Ola was founded in the year 2011 and currently, it is offering its services across more than 110 cities. It has around 10 lakh drivers on board including the cab drivers and auto rickshaw drivers.
At the beginning of this year, the company also expanded its services in Australia catering to cities like Perth, Sydney, Melbourne where it is still competing with Uber.
It is interesting to know that both the companies are funded by SoftBank.