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Olacabs to buy TaxiForSure for Rs 1250 cr

Taxi-hailing app service provider Olacabs is on the verge of
buying rival TaxiForSure for a reported Rs 1,250 crore.

Taxi-hailing app service provider Olacabs is on the verge of
buying rival TaxiForSure for a reported Rs 1,250 crore.

Japan’s SoftBank backed Olacabs will reportedly pay cash and
offer stock, reports the Economic
Times
, citing three people directly involved in the negotiations.

“The term sheet has been signed and in the next 10 days
the finer details will be chalked out,” undisclosed sources told the
Economic Times, referring to the document which spells out the terms of a
potential transaction.

The sources also said the aim of combining forces is
two-fold. Firstly, that includes taking on Uber, which is valued at $40
billion, and focusing on lowering costs as regulators step up oversight of the
taxi app market.

Globally, taxi aggregators are in talks to form an international
alliance against Uber, potentially linking up regional players including
Olacabs, Singapore’s GrabTaxi, and San Francisco based Flywheel.  Uber has recently embraced a government approved business
model
in Delhi, which allows Uber to legally operate in the capital,
enabling safe, reliable rides to an underserved public while working out the
details of a long-term solution with the government.

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

Few weeks back, 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.

Olacabs, TaxiForSure and Uber have applied for a license to
operate in Delhi under an amended radio taxi scheme. The applications have
reportedly been rejected
due to certain deficiencies.

 

 

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