Opinion
CEO’s exit: Another bump in Ola's ride?
Summary
- IPO-bound Ola Cabs saw its chief Hemant Bakshi resign after barely four months in the post. What’s up? Going-electric jitters? Its path will be under watch.
The chief executive officer of Ola Cabs, Hemant Bakshi, is reported to have resigned after barely spending four months in the position. The company is also set for restructuring, which may lead to a 10% staff reduction. As top management exits often are, the back-story of his exit is shrouded in mystery. But investors must surely wonder what’s going on.
The business recently initiated talks with investment banks for an initial public offering, so a CEO departure at this point sticks out as odd. Signs of the going having got bumpy for Ola have been around. Earlier this month, it withdrew from overseas ride-hailing markets like the UK and Australia to focus on electric mobility. In ride-hailing, it faces heat from all-electric BluSmart at the upper end. At the lower end, the likes of Namma Yatri, which boasts of charging no commission, offer it stiff rivalry.
It’s financials look okay, though. In 2022-23, Ola’s mobility business turned profitable for the first time. Has the ownership’s electric vehicle (EV) ambitions stolen attention away from the cab business? Its path from here on will be tracked for an answer.
