Ola shrinks workforce in profit push even as Rapido gains ground

Core Insights - ANI Technologies Pvt. Ltd, the parent company of Ola, has reduced its workforce by over 50% since April 2024, with salaried employees dropping from 886 to 376, a 57% decrease [1][2] - The downsizing is attributed to the company's focus on profitability and reducing cash burn, involving role eliminations and automation [2] - Ola's market share has declined significantly, now estimated at 25-30%, down from 42-44% in FY24, while competitors Uber and Rapido have gained market share [6][8] Company Performance - In FY24, ANI Technologies reported a narrowed loss of ₹328 crore, down from ₹772 crore the previous year, despite a 5% decline in revenue to ₹2,011 crore [2] - Ola Electric, a subsidiary, has seen its shares fall by approximately 36% since its public listing in August 2024, indicating challenges in achieving profitability [9][10] Competitive Landscape - Uber currently holds around 45% market share in the Indian ride-hailing sector, while Rapido has gained over 20% market share since its launch in late 2023, primarily at Ola's expense [6][8] - The competitive dynamics have shifted, with Rapido emerging as a significant threat to both Ola and Uber, particularly in tier-2 and tier-3 cities [8] Investment and Valuation - ANI Technologies has raised a total of $3.84 billion across 25 funding rounds, with notable investors including SoftBank and Tencent [11] - Vanguard recently reduced its valuation of Ola Consumer to $1.25 billion, a significant drop from its peak valuation of $7.3 billion [3]