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

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

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

John Ribeiro

IDG News Service
Show Comments

Cool Tech

Toys for Boys

Family Friendly

Stocking Stuffer

SmartLens - Clip on Phone Camera Lens Set of 3

Learn more >

Christmas Gift Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Aysha Strobbe

Microsoft Office 365/HP Spectre x360

Microsoft Office continues to make a student’s life that little bit easier by offering reliable, easy to use, time-saving functionality, while continuing to develop new features that further enhance what is already a formidable collection of applications

Michael Hargreaves

Microsoft Office 365/Dell XPS 15 2-in-1

I’d recommend a Dell XPS 15 2-in-1 and the new Windows 10 to anyone who needs to get serious work done (before you kick back on your couch with your favourite Netflix show.)

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?