The duo hold 0.8 percent stake in Ola, the stake worth around Rs 120 crores as per the valuation. This move comes within a month of acquisition by Olacabs; however no date was set by the duo for moving out of the Ola. After acquisition both the promoters had moved to advisory role in the company to oversee the transition of the company.
TaxiForSure was founded in 2011 and operated in 100 square foot office in Bangalore. The company became major aggregator of taxis and facilitated around five million cabs rides for users in last four years. TaxiForSure was acquired by Ola for $200 million for all stock deal in March 2015.
This was marked as largest acquisition in the internet space in recent years after the acquisition of Myntra by Flipkart. TaxiForSure continues to operate as a separate entity for some time; however there are similarities between Ola and TaxiForSure, operations of both companies are based on different business models.
Ola operates on driver centric module and it brings individual driver owners of the cab to its network. TaxiForSure works on operator centric model, it ties with cab operators with a fleet of cars in the network. TaxiForSure and Olacabs offer auto rickshaw booking on their apps.
At the same time, Olacabs started diversifying into different modes of business. The company started food delivery through their OlaCafe app in certain areas of major metropolitan cities of India like Bengaluru, New Delhi, Chennai, Hyderabad and Mumbai. They are planning to rollout delivery of grocery to the doorsteps of the customer. However these are at the planning stage.
Ola is been funded recently DST Global and other investors, now valued at $2.4 billion gives significant value for money for the investors. The company is planning to spread their services in 200 cities of the country.
The competitor Uber is still fighting with legal authorities like transport department and courts over the unfortunate incident happened last year. Uber’s licence to operate taxi services is under process with transport authorities.