Ola ridesharing closes in Australia and New Zealand

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Ride-sharing programme Ola is closing its doors in Australia and New Zealand'Discontinuing operations' from April 12 was the shocking announcement Ola, one of Uber's main rivals, sent to its customers via email. “This means that you will no longer be able to book any rides through your Ola app from that date,” the email read.

“You must not take any rides with any vehicle purporting to be an Ola vehicle or Ola driver from 12th April 2024. Ola has not authorised any driver or any other party to use the Ola brand or provide rides on Ola’s behalf.”

The email did not reveal why Ola was shutting down its services with very little warning.

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However, the email explained customers could access the app for their account information or to raise a query to the customer care team for a period of 30 days.

Customers will then be permanently locked out of the Ola app from May 11, 2024. 

After its media enquiry email was returned, The Evening Post AU contacted Ola through its support services contact to request a comment.

In response to reports that the ridesharing company will be ceasing operations throughout Australia and New Zealand, the Transport Workers' Union is urging Ola to reimburse its employees for their unpaid wages.

Ola’s exit follows that of Milkrun, Send and Voly over the past two years, following a trend right across the transport industry of companies being forced out of the market by unfair and unsustainable competition.

Recently Federal Parliament passed legislation which will empower the Fair Work Commission to set and enforce standards in the gig economy, with laws to take effect in August.

Outside of the gig economy, Scott’s Refrigerated, Neway and Rivet Mining Services have all recently collapsed because of unsustainable contracts, leading to over 2000 job losses.

TWU National Secretary Michael Kaine said the shutdown showed the urgency of getting minimum standards in place to level the playing field and protect workers.

“Workers in the gig transport economy have for too long been ripped off minimum wage and other rights, and put under deadly pressure to prioritise speed over safety when delivering food. We will seek an urgent meeting with Ola to seek the best possible outcome for affected rideshare drivers.”

“This industry is cannibalising itself. Companies operating sustainable models that support workers are being forced out through unchecked supply chain pressure and exploitative competition from the likes of Amazon. Ola’s exit shows how critical it is to get standards in place to lift pay and make transport gig jobs safe, secure and sustainable.” said Michael Kaine

He added Around the world, courts and governments have struggled to keep up with the rampant exploitation in the gig economy. The Closing Loopholes Bill recently passed by Federal Parliament is a sophisticated answer to this global crisis.

“The TWU is working with gig companies to apply to the Fair Work Commission and set standards as soon as laws allow, so we can protect workers and stabilise the industry.” Michael Kaine disclosed

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