Ola cabs is a Mumbai based online taxi service gearing up to acquire the rival company. India’s giant one among taxi aggregator Ola cabs in talk to acquire Taxiforsure for around $200 – $250 million as per the report of Times of India.
If the deal between two aggregators becomes a success, this will be the second biggest acquisition after Flipkart bought Myntra for $370 last year. The report stated japan’s soft bank valued Ola cabs at $2 billion and Ola will pay cash and offer stock for end up this acquisition. It must be noted that the soft bank has invested $250 million in South East Asia’s Grab taxi service last year.
Taxiforsure is another taxi aggregator launches taxi service rapidly across many cities in India, which has raised the fund of $60 million from the investors. It is a four year old start company which includes the huge investors like, Accel partners, Bessemer Venture Partner, and silicon valley that may have olacab’s stock after its purchase. The person close to this deal, said that before the asset with olacab, taxiforsure held discussion with carzonrent and international competitor Uber. This acquisition would create more competition among local cabs as well this would make Ola become stronger in fund rising.
It’s been hardly a couple months, since the sexual assault in Delhi. Indian government has come up with new regulations for on demand taxi services like Uber, Ola, Taxiforsure after the rape incident. Cab aggregators came up with many regulatory issues after this incident and just recently ban has lifted from Uber with the government’s new scheme. Uber is an American based taxi service provider walk with decisive steps to evolve their brand in India and also launched 11 major cities within a year. Times of India said, an aggressive move towards to beat an international rival company Uber from Indian market.