Ola’s outstation service grows 2X; tier-2 cities contribute the most

Ola is planning to scale up its ‘outstation’ business vertical, which provides inter-city mobility service to tier-2 cities across the country. The ride-hailing giant sees a huge opportunity in this segment.

The company, which competes with US rival Uber, aims to capture a market that is poised to grow to $15 billion in the near future.

The trigger for expansion is the company’s ‘outstation’ unit, which has grown double its base size. It has become a profitable vertical in Ola’s group business, according to sources.

Major growth for Ola’s outstation business is now expected to come from smaller cities such as Manipal, Roorkee and Aligarh.

Ola is building innovations to cater to the unique needs of these towns. Ola said India’s inter-city cab market largely consists of unorganised players.