Business Facts – Ola cabs profit for the first time in 10 years
Nov 3, 2021 Business Facts
Ola Cabs (commonly known as OLΛ), an an Indian multinational ride sharing company offering online taxi services posted an operating profit of Rs 89.8 crores for the first time after it started its operations a decade ago in 2010. The company headquartered in Bangalore was started by Bhavish Agagarwal alongwith Ankit Bhati.
The operating profit, which is actually the earnings before interest, depreciation and amortisation (EBITDA) of Ola Cabs grew by 115 percent in FY 2020-21 to Rs 89.8 crore as compared to a reported a loss of Rs 610 crore in FY 2019-20. Due to COVID pandemic, the operating profit dropped by 65% to Rs 689 crore in FY21 from Rs 2,000 crore in FY20.
The first towards profit was driven largely due to a 75 percent cut in operational costs in FY21 as compared to FY20. The operational cost consists of employee expenditure, sales, and advertisement related and other expenses.