Menu
Indian ride-hailing app Ola acquires rival for $200 million

Indian ride-hailing app Ola acquires rival for $200 million

Ola acquired TaxiForSure in a cash and equity deal

India's ride-hailing app market is beginning to see signs of consolidation with the largest player, ANI Technologies' Ola, acquiring a smaller rival for US$200 million.

While SoftBank-backed Ola has over 100,000 vehicles on its platform across 67 cities, TaxiForSure, run by Serendipity Infolabs, has over 15,000 vehicles across 47 cities.

Ola is positioned as a mobile app that does not own any of the taxis, nor does it directly or indirectly employ the drivers, all of which are supplied by third parties. It works with driver entrepreneurs, unlike TaxiForSure which deals with a network of cab operators.

TaxiForSure has also focused on the low-end of the market though Ola has also ventured into low-cost three-wheeler vehicles, popularly known locally as auto-rickshaws.

The potential of the market has become evident with Uber Technologies making a pitch for it. But the U.S. company has fallen foul of local authorities after a Uber driver in Delhi allegedly raped a woman passenger in December. Uber was banned in Delhi after this incident.

After the rape, other app based taxi companies have also come under scrutiny. Delhi's transport department has, for example, framed new rules, called the Radio Taxi Scheme that places tighter controls on taxi operators.

The companies will also have to meet a number of conditions including offer a call center, have a registered office in Delhi and an official website with extensive information on its operations, and provide panic buttons in the vehicles.

After the acquisition, TaxiForSure and Ola will operate as separate entities. Ola paid both in cash and equity for the deal.

John Ribeiro covers outsourcing and general technology breaking news from India for The IDG News Service. Follow John on Twitter at @Johnribeiro. John's e-mail address is john_ribeiro@idg.com


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags internetInternet-based applications and servicesOLAUber TechnologiesTaxiForSure

Featured

Slideshows

Meet the leading female front runners of the Kiwi channel

Meet the leading female front runners of the Kiwi channel

Reseller News honoured the leading female front runners of the New Zealand channel at the 2018 Women in ICT Awards (WIICTA) in Auckland. The awards honoured standout individuals across seven categories, spanning Entrepreneur; Innovation; Rising Star; Shining Star; Community; Technical and Achievement.

Meet the leading female front runners of the Kiwi channel
Meet the top performing customer-centric Microsoft channel partners

Meet the top performing customer-centric Microsoft channel partners

Microsoft honoured leading partners across the channel following a year of customer innovation and market growth in New Zealand. The 2018 Microsoft Partner Awards recognised excellence within the context of the end-user, spanning a host of emerging and established providers.

Meet the top performing customer-centric Microsoft channel partners
Reseller News launches new-look Awards at 2018 Judges’ Lunch

Reseller News launches new-look Awards at 2018 Judges’ Lunch

Introducing the Reseller News Innovation Awards, launched to the channel at the 2018 Judges’ Lunch in Auckland. With more than 70 judges now part of the voting panel, the new-look awards will reflect the changing dynamics of the channel, recognising excellence across customer value and innovation - spanning start-ups, partners, distributors and vendors.

Reseller News launches new-look Awards at 2018 Judges’ Lunch
Show Comments