Why Ola is trimming its realty footprint in Bengaluru
What's the story
Ola, the ride-hailing and electric vehicle firm, has given up nearly 170,000 square feet of office space in Bengaluru. The move comes as part of a cost-cutting strategy and operational recalibration amid a slowdown in electric two-wheeler demand. The firm surrendered over 112,000 sq ft at Prestige-RMZ Startech in Koramangala.
Space takeover
Accenture has taken over the space
The entire seventh and eighth floors of Tower B at Prestige-RMZ Startech have now been taken over by global consulting and technology company Accenture. At Infozone in Electronic City, where Ola's Battery Innovation Centre is located, the company gave up almost 60,000 sq ft out of some 200,000 sq ft it occupied last year.
Market impact
Demand for premium office space in Bengaluru remains strong
The decision to surrender office space is more about internal consolidation than a market-driven exit. This is because demand for premium office space in Bengaluru remains strong, especially from the GCCs and consulting firms. Despite the changes, Ola still occupies roughly 427,000 sq ft at Prestige Startech where its corporate office and operations related to Ola Electric are located.
Lease details
Lease for remaining space renewed last year
The lease for Ola's remaining space was renewed last year for five years, until October 2030. The firm had moved into the recently surrendered space in April 2023, when it was rapidly scaling multiple verticals. A company spokesperson said that "Ola Electric undertook a workspace optimization last year as part of a broader business restructuring."