By Tim Maytom
Taxi-hailing service Ola has bought its closest rival, TaxiForSure, for Rs 1,238 crore (£129.6m) in an effort to secure a larger share of India’s fast-growing digital taxi market, where it competes with a number of local players as well as Uber.
The two companies will continue to operate as separate entities, with investors in TaxiForSure rolling their stock over into Ola, which is backed by Japan’s SoftBank. Current TaxiForSure chief executive Raghunandan G will step down, with current COO Arvind Singhal becoming the firm’s CEO. All 1,700 employees will retain their jobs.
The deal will place Ola’s valuation at over £1.3bn and make it the largest player in India’s taxi-hailing market. It is the second largest deal in India’s consumer internet space, after Flipkart’s acquisition of Myntra last year for £240m.
Ola currently operates in 67 cities, and is aiming to be present in over 200 by the end of this year. TaxiForSure has a slightly smaller market, with 47 cities, but has over 15,000 vehicles registered to its platform, adding an impressive fleet to Ola’s existing number of drivers.
Source:: Mobile App News