Ola has shut down its TaxiForSure business and has lain off 700 employees, according to three people directly aware of the developments at India's largest cab aggregator.
A little over a year ago, Ola acquired rival TaxiForSure in a $200 million (roughly Rs. 1,240 crores) deal that saw the two services merge. Soon after that, you were able to book TaxiForSure cars via the Ola app, but now Ola is now shutting down TaxiForSure as a separate offering, and integrating its fleet. The company has confirmed the development via a statement to Gadgets 360 that also admits that some employees will be laid off.
Since the acquisition, Ola has been silently shutting down TaxiForSure as an independent brand across various cities and has been integrating TaxiForSure offerings to its own app.
The unit had also witnessed a massive senior management exodus within months of its acquisition with CEO Arvind Singhal leaving in just four months.
"The TaxiForSure (TFS) value proposition as an economy brand for customers has been seamlessly integrated onto the Ola platform with the launch and rapid adoption of Ola Micro. TFS has contributed immensely towards Ola Micro's success within a short span of time. Ola Micro has expanded to over 90 cities across India and accounts for the largest share of first time cab users coming onto any mobility platform. This has helped us achieve our objective of building an economy mobility offering for millions of users across the country. With all TFS driver-partners and customers coming on board the Ola app, the integration is now complete.
As part of this integration over the last 18 months, we have achieved immense operational efficiencies that have resulted in an improved experience for customers and driver-partners alike. In the course of the integration, we have absorbed as many TFS employees for open roles in Ola to support our growth. For positions that cease to exist as a result of this transition, we are offering enhanced severance benefits and outplacement services to help affected employees pursue new career opportunities."