Ola buys TaxiForSure, takes on Uber

Uber beware. Olacabs is gearing up to pull the rug from under your feet.

Olacabs is all set to acquire TaxiForSure for $200 million (Rs 1,250 crore).The acquisition will make Olacabs, a leader in the taxi aggregator business in India. And more importantly, fortify its resources to take on its biggest international competitor Uber, head on. Olacabs is said to be worth $2 billion after the takeover, while Uber is worth $40 billion.

Did someone say, David taking on Goliath. But remember, it was David who finally came up trumps.

As per the latest media reports, the deal has been finalized in terms of cash and stock. TaxiForSure investors will get stocks in Olacabs after the acquisition.

TaxiforSure kicked of its operation in 2011 and now has ridden across 36 Indian cities. Thus far, it has raised $60 million in funding from international players like Accel Partners and Bessemer Venture Partners. But recently when the taxi app company was out scouting for fresh funds, Olacabs made an offer and TaxiforSure was completely swept off its feet.

Olacabs, on the other hand, managed to raise $210 million from Softbank and other existing investors like Tiger Global, Matrix Partners India and Steadview Capital.

The influx of international funding vouches for the growing popularity of on-demand taxi aggregator business in India.

Recently, Uber, TaxiforSure and Olacabs were facing hard times in Delhi after the rape incident. In fact, many aggregators were banned from operating in the national capital, and other cities.

However, recently, the ban was lifted, provided the taxi apps companies operate under the Radio Taxi license. Though all three companies have applied for the licenses, many errors have crept up in their applications, informed media reports. So the companies has received memos, to fill in all the ‘gaps’ with a ten – days time.

Both Olacabs and Uber are changing their business model to stay relevant in Delhi. However, Olacabs has an upper hand over Uber in terms of physical offices and customer care centres. Plus, it even has a fleet of registered taxis in the city.

Thanks to the ongoing fight between Uber and Olacabs, it’s seems the customers will be having the last laugh this time, with slash in prices.