Ola, the largest taxi hailing service in India has acquired Geotagg, a Chennai-based intelligent transportation systems (ITS) startup. The financial term of the deal has not been disclosed.
Founded by IIT-Madras graduated Akhilesh Koppineni and Krishna Chaitanya, Geotagg is a mobile app that allows users keep track of peak hour and general traffic in closest to the real-time. The app provides a suite of products for advanced passengers information solutions under heavy traffic conditions through its strong ITS application. Its GPS-based public information systems solution for buses is mainly designed to target traffic issues like peak-hour traffic jams, vehicles overtaking, vehicles going detour, etc.,
Couple of months ago, Ola has announced it launch of new shuttle intra-city bus services in Bengaluru and Gurgaon for an investment of few million. Now with the acquisition of Geotagg, the app will assist Ola in providing reliable and robust transportation solutions under challenging traffic conditions through its strong ITS application. With the acquisition, the company is trying to battle out Uber, which is another major player in the segment.
Ola’s new shuttle service is led by Sundeep Sahni, who is the vice president of New Initiatives at Ola. The shuttle service comes at the key time for the company just on time when the company raises $400 million in Series E funding.The company’s total capital raises to $680 million following this latest round. According to the VP, the new shuttle service will use $50 million for the total funds. The shuttle services is expected to be introduced in more regions very soon.
Undeniably, buses are a prime mode of travel in India, with around 1.5 lakh buses transporting some 70 million people every day, shows reports. Ola’s recent move to launch shuttle services in India will not only bridge the gap in public transport in urban cities, but also help the firm grab a larger customer base as it faces intense competition from its rival Uber. Currently, Ola claims to hold 80% of the total taxi aggregation market in India.