Is a car essential? Neither of us drive.
Ah well that depends.
I have had guests who hired a car and wished they didn't bother and others who didn't hire a car and wished they did.
Los Olivos is about a half hour drive from the airport (Malaga) and I think a taxi is about Euro 50 each way (but still cheaper than car hire) or you can get a train to Fuengirola and then get a taxi (about 10 mins away).
We are in a small resort called Riviera and there are bars,* shops, restaurants, coffee shops all within a 10 min walking distance but its not a huge resort so mainly suited to families or couples. There are no late night clubs so if thats what you like then its not for you.
There are buses at the bottom of the road so if you do want to venture further afield then the option is there. We are about 20 mins in a car from Marbella and there is a huge water park 10 minutes away in Fuengirola.
At the bottom of the hill where the supermarket is, there is a taxi rank so if you have a big supermarket shop then its easy to just get a taxi back up the hill.
Some people have a car and dont use it much as they are happy to chill by the pool all day and then wander up or down the hill to one of the lovely restauants.
* I dont know if the bars sell decent cider!
