Ride hailing platform Ola Consumer (formerly Ola Cabs), led by Bhavish Aggarwal, reported a sharp decline in its financial performance for FY25, as revenue fell 42% year-on-year to ₹1,171 crore, down from ₹2,012 crore in FY24. The downturn reflects eroding market share amid intensifying competition, particularly from Rapido in the four wheeler segment.
The company’s core ride hailing business, which contributed 79% of total operating revenue, saw income decline over 47% to ₹925 crore, compared to ₹1,761 crore in the previous fiscal year.
Its financial services arm, OlaMoney, also reported a 19% drop in revenue to ₹185 crore, while commerce and logistics contributed ₹61 crore. Including ₹198 crore in non-operating income, total income stood at ₹1,369 crore for FY25.
Despite a reduction in some operating costs, overall expenses remained largely unchanged. Driver related costs, accounting for nearly 20% of expenditure, declined 34% to ₹401 crore, while employee expenses fell 39% to ₹205 crore. However, advertising spend more than doubled to ₹233 crore, as the company attempted to revive demand.
With costs staying elevated and revenues shrinking, losses doubled to ₹662 crore, compared to ₹329 crore in FY24. On a unit basis, Ola spent ₹1.74 to earn every rupee, highlighting deteriorating efficiency. Profitability metrics also weakened, with ROCE at -31% and EBITDA margin at -48.93%.
The company’s liquidity position showed signs of pressure. As of March 2025, Ola reported current assets of ₹1,630 crore, including cash reserves of ₹653 crore, down significantly from ₹1,395 crore a year earlier.
The competitive landscape has intensified. Uber India reported ₹3,849 crore in revenue in FY25, while Rapido posted ₹934 crore, gaining ground in key markets.
Ola’s FY25 performance signals a structural shift in India’s ride hailing market, where competitive pricing, supply-side efficiency, and user experience are reshaping market leadership. With declining scale and rising losses, the company faces mounting pressure to stabilise operations and regain momentum in FY26.
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