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Finally, Olacabs acquires TaxiForSure for $200 mn

Last month, we
had reported
that Taxi-hailing app service provider Olacabs is on the verge of
buying rival TaxiForSure for a reported Rs 1,250 crore. And that Japan’s
SoftBank backed Olacabs will reportedly pay cash and offer stock.

Last month, we
had reported
that Taxi-hailing app service provider Olacabs is on the verge of
buying rival TaxiForSure for a reported Rs 1,250 crore. And that Japan’s
SoftBank backed Olacabs will reportedly pay cash and offer stock.

Now, Olacabs has
acquired its competitor TaxiForSure for $200 million in a cash and equity deal.
Both the companies will continue to operate as separate companies. With this acquisition, investors in TaxiForSure will roll over their
stock into Ola.

A press
statement from Ola said the leadership and all of the 1,700 employees shall
continue to work with TaxiForSure, with Arvind Singhal (currently COO) being
appointed the CEO.

Aprameya
Radhakrishna and Raghunandan G, the founders of TaxiForSure, will contribute in
an advisory role for a certain period.

TaxiForSure
currently operates in 47 cities with over 15,000 vehicles registered on its
platform. Ola which is already the market leader in the personal transportation
space has over 1 lakh vehicles on its platform.

The statement
said there is significant complementary value that this acquisition adds both
on the supply and demand side for Ola and TaxiForSure. TaxiForSure follows a
different model of supply and distribution by working with cab operators
compared to Ola’s model of working with driver-entrepreneurs. TaxiForSure has
also focused heavily on the economy segment of cab consumers with innovative
offerings like Tata Nanos as part of their fleet and Rs 49 as base fares in the
past.

For customers,
drivers and operators on the TaxiForSure platform, nothing will change.
Customers can continue to book a cab through the app and call centre and
drivers will continue to get access to customers on TaxiForSure’s technology
platform as always.

Bhavish Aggarwal,
Co-founder and CEO, Ola, said, “Ola and
TaxiForSure share the same vision of revolutionising urban mobility.
TaxiForSure has a great team and they have built a very exciting business in a
short time. There’s a lot of complementary value in the strategy TaxiForSure
has followed. I’m very excited to welcome the TaxiForSure team onboard and look
forward to working with them towards realising our common vision.”

Raghunandan G,
Co-founder and CEO, TaxiForSure, said, “TaxiForSure coming
together with Ola will provide us with more opportunity than ever, to do what
we do best. Post this acquisition; the combined entity will be strong enough
and better capitalized to offer the best value to all our stakeholders,
including our customers. This development ensures that industry attractiveness
is preserved and the combined entity can race ahead and continue to create
unprecedented value for all stakeholders.”

In October 2014,
Olacabs had received $210 million in funding led by Japanese communications
conglomerate SoftBank. And few months ago, TaxiFor-Sure had raised $30 million
from Accel and Qualcomm.

Also,
Bengaluru-based Serendipity Infolabs, which owns and operates online taxi
booking platform TaxiForSure, raised a bridge round of $6 million from its
existing investors Accel Partners India, Helion Venture Partners and Accel
Partners US, among others.

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