Ola CEO Bhavish Aggarwal announced on December 21 that they are introducing two new features on its driver app in a bid to reduce trip cancellations on the platform.
The Bengaluru-based ride-hailing major will now provide drop destination visibility to drivers before accepting a ride on the Ola Driver app. It will also provide visibility on the trip's payment mode. This means drivers will be able to know whether the booking is a cash trip or a digital payments trip before accepting it.
"Addressing the 2nd most popular question I get - Why does my driver cancel my Ola ride?!! We're taking steps to fix this industry-wide issue ... Enabling drivers is key to reducing cancellations," Aggarwal said in a tweet on December 21.
Lack of location and payment visibility has been billed by various industry stakeholders as one of the key reasons why drivers cancel a trip. These measures could reduce driver cancellations, although it is also worth watching out if it would have any impact on the rate of ride acceptance from drivers.
Ola IPO incoming
This move comes as the IPO-bound firm witnesses a recovery in its core ride-hailing business from the impact of the ongoing COVID-19 pandemic as it gears up for a public market debut next year.
In September 2021, Aggarwal had said that Ola's gross merchandise value (GMV) had crossed the pre-pandemic levels for the week leading up to August 31, with the recovery from the second COVID-19 wave being three times faster than the first wave.
"10 million people used Ola for the first time ever in FY21. As people move, they want to feel safe so they’re switching to personal or shared mobility instead of public transport. Many are moving to Autos taking our Auto business to almost 150% of pre-covid levels," Aggarwal said on Twitter on September 7, 2021.
On December 16, Ola announced it has raised $500 million debt financing from marquee international institutional investors through a Term Loan B route, joining the likes of Byju's and Oyo. The company said it plans to utilise the term loan to accelerate its vision for the future of mobility across businesses such as ride-hailing, vehicle commerce, delivery with foods, quick commerce, and financial services.
Ola has also raised about $139 million (Rs 1,048.6 crore) from a clutch of investors including IIFL, Edelweiss, and Sunil Munjal-led Hero Enterprise, in what appears to be pre-IPO financing round, Moneycontrol reported on December 9.
Meanwhile, Ola Electric has also started the deliveries of its much-delayed electric scooters on December 15. The Bengaluru-based ride-hailing major said it has delivered scooters to 100 customers in Bengaluru and Chennai on the first day of its two-wheeler deliveries.
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