Cab aggregator Ola will shut operations of its subsidiary TaxiForSure (TFS) across all cities, resulting in a job loss for about 700 people.
Cab aggregator Ola will shut operations of its subsidiary TaxiForSure (TFS) across all cities, resulting in a job loss for about 700 people. Almost 18 months after its acquisition, Ola on Wednesday claimed to have completely integrated TFS in Ola app and taken all its driver-partners on board.
At the same time, Ola has assured that it will provide enhanced severance benefits and outplacement services to employees affected by the move.
“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. 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,” Ola said in a statement.
“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,” it said.
TaxiforSure, the brainchild of IIM-A alumni Aprameya Radhakrishna which started in 2011, was acquired by Ola in March 2015 in a $200 million deal. During the acquisition, Ola had stated that both would function as separate entities and had earmarked $100 million towards TaxiForSure’s growth. It also had appointed Arvind Singhal as the CEO, who later quit. TFS founders Aprameya Radhakrishna and G Raghunandan quit in April 2015.
TFS was the first player to launch a budget category Nano on its platform making it cheaper than the auto and the most reasonable and comfortable taxi service available in the Bangalore city. The category has now been adopted by Ola as Ola Micro which has now expanded to over 90 cities across India and accounts for the largest share of first time cab users coming onto any mobility platform.
According to the report by consulting firm Redseer, based on the percentage of industry gross GMV of $115 billion, Ola and TaxiForSure together accounted for about 61% of the overall market share (50% and 11% respectively), while it is just 26% for Uber.
Anil Kumar, CEO of RedSeer Consulting said, “Ola played a masterstroke with the launch of Ola Micro which is contributing to 30-40% of the entire Uber by March 2016.”
Ola, which has expanded to over 102 cities has about 3.5 lakh cabs on its platform, while its competitor Uber, which started operations in 2013 has presence only in 26 cities with 2.6 lakh vehicles.