Newsbytes
  • India
  • Business
  • World
  • Politics
  • Sports
  • Science
  • Entertainment
  • Auto
  • Lifestyle
  • Inspirational
  • Career
  • Bengaluru
  • Delhi
  • Mumbai
  • Videos
  • Find Cricket Statistics
Hindi
More
Newsbytes
Hindi
Newsbytes
User Placeholder

Hi,

Logout


India
Business
World
Politics
Sports
Science
Entertainment
Auto
Lifestyle
Inspirational
Career
Bengaluru
Delhi
Mumbai
Videos
Find Cricket Statistics

More Links
  • Videos

Download Android App

Follow us on
  • Facebook
  • Twitter
  • Linkedin
  • Youtube
 
Home / News / Business News / Ola to shut down TaxiForSure; lays off several employees
  • Business

    Ola to shut down TaxiForSure; lays off several employees

    Ramya Patelkhana
    Written by
    Ramya Patelkhana
    Mail
    Last updated on Aug 20, 2016, 03:55 pm
    Ola to shut down TaxiForSure; lays off several employees
    Credits:
  • ANI Technologies that runs app-based cab service provider Ola has announced that it would close TaxiForSure (TFS), which it had acquired in Mar'15.

    According to some media reports, nearly 1000 TFS employees, including those working in call centers, driver relations, and business development departments, are being laid off by Ola.

    Since the TaxiForSure acquisition, Ola's operations have reportedly been reduced.

  • In this article
    Enhanced severance benefits and outplacement services Third biggest buyout in the Indian consumer Internet history Ola's decision, a masterstroke? An Ola investor's statement Firms often underestimate the required effort Several acquired firms closed in the past The case of 'Exclusively' Not all deals benefit the buyer
  • Quote

    Enhanced severance benefits and outplacement services

  • In a statement, Ola said, "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."

  • Third biggest buyout

    Third biggest buyout in the Indian consumer Internet history

    Third biggest buyout in the Indian consumer Internet history
  • About 18 months after purchasing TaxiForSure for $200 million, Ola decided to close it down.

    The buyout was the third biggest in the history of Indian consumer Internet behind Snapdeal's FreeCharge acquisition for $400 million in Apr'15 and Myntra's acquisition by Flipkart for $330 million in May'14.

    The deal helped Ola's valuation jump to $5 billion within six months as it raised $500 million.

  • Masterstroke?

    Ola's decision, a masterstroke?

    Ola's decision, a masterstroke?
  • Investors and analysts have regarded Ola's decision to acquire TaxiForSure and also close it as a masterstroke.

    By purchasing TaxiForSure mostly in stock, Ola got rid of its rival and became India's only new-age cab services company in which investors could put their money.

    TFS' acquisition helped Ola in taking the lead over its American rival Uber and focus its energy on fighting it.

  • Quote

    An Ola investor's statement

  • "From the start, the whole intent behind buying TFS was to kill it. Once TFS was out of the picture, any investors who wanted to play in the cabs sector would necessarily have to invest in Ola. And that's played out really well for us."

  • M&A Deals

    Firms often underestimate the required effort

    Firms often underestimate the required effort
  • Inventus Advisors (India) Director Rutvik Doshi said founders of firms often underestimate the required effort to integrate two firms after an M&A.

    According to him, aligning the aspirations of two different organizations - working style, culture, products - requires a lot of effort.

    He added because of the "need to scale faster", start-ups often overlook the required effort, which consequently leads to fallouts.

  • Other acquired firms

    Several acquired firms closed in the past

    Several acquired firms closed in the past
  • Apart from the Ola-TFS deal, several other acquired firms have been closed in the past.

    Leading Indian startups like Flipkart, Myntra (acquired by Flipkart), and Snapdeal acquired smaller rivals to eliminate competition but later shut them down.

    In Jan'12, Snapdeal purchased fitness and sports equipment e-tailer eSportsBuy and killed it within two months.

    Flipkart acquired Letsbuy in Feb'12 and closed it three months later.

  • Exclusively.in

    The case of 'Exclusively'

    The case of 'Exclusively'
    Credits:
  • Myntra bought private brand Exclusively and its subsidiary Sher Singh, a private sports apparel brand in Nov'12.

    Sher Singh was killed soon while Exclusively was sold back by Myntra to its founders Sunjay and Mohini Boparai Guleria in Jun'13.

    In Feb'15, Snapdeal bought Exclusively to expand its apparel business and dominate fashion sales.

    However, in Aug'16, Snapdeal announced that it would close down Exclusively.

  • CommonFloor, TinyOwl

    Not all deals benefit the buyer

    Not all deals benefit the buyer
  • Most of the M&A deals benefit the buyer and his investors but not always do such strategies work.

    For instance, the Quikr-CommonFloor $120-million-worth deal turned bitter after several CommonFloor employees were laid off and offices were closed.

    In the case of Roadrunner-TinyOwl merger deal, in which both the start-ups tried to "salvage their investments", a new entity Runnr was created leading to TinyOwl's closure.

  • India
  • Snapdeal
  • FreeCharge
  • Ola
  • TaxiForSure
  •  
Latest News
  • Wanted for Republic Day violence, Sidhana attends farmers' rally
    Wanted for Republic Day violence, Sidhana attends farmers' rally
    India
  • 2021 Maruti Suzuki Swift hatchback launched at Rs. 5.73 lakh
    2021 Maruti Suzuki Swift hatchback launched at Rs. 5.73 lakh
    Auto
  • Netflix blends supernatural events and Sherlock Holmes with 'The Irregulars'
    Netflix blends supernatural events and Sherlock Holmes with 'The Irregulars'
    Entertainment
  • Trading halted on NSE due to telecommunication link issues
    Trading halted on NSE due to telecommunication link issues
    Business
  • 7 killed as car collides with tanker on Yamuna Expressway
    7 killed as car collides with tanker on Yamuna Expressway
    India
Trending Topics
Bharti Airtel Mukesh Ambani WhatsApp Spotify Reliance Jio OPPO Isha Ambani
Next News Article
Share
Cancel

Want to share it with your friends too?

Facebook Whatsapp Twitter Linkedin
Copied

Love Business news?

Subscribe to stay updated.

Business Thumbnail
India News Business News World News Politics News Sports News Science News Entertainment News Auto News Lifestyle News Inspirational News
Career News Bengaluru News Delhi News Mumbai News Bharti Airtel Mukesh Ambani Indian Premier League Samsung Virat Kohli Rohit Sharma
Cricket News Facebook YouTube Hollywood News WhatsApp Netflix Bollywood News ISRO Spotify Yoga
Honda Batman Football News BMW Vaccine Reliance Jio OPPO Food News, Healthy Recipes Royal Challengers Bangalore Toyota
Fashion Tips Ishant Sharma Farmers Protest Mercedes Isha Ambani India Vs England Cricket OnePlus Mobiles Android TV Smart TV Robert Lewandowski
Marvel Comics Avengers Neha Kakkar Mena Massoud
About Us Privacy Policy Terms & Conditions Contact Us News News Archive Topics Archive Find Cricket Statistics
Follow us on
Facebook Twitter Linkedin Youtube
All rights reserved © NewsBytes 2021