Ola had acquired TaxiForSure in March 2015 for $200 million following which the service was integrated into the former’s app. Now, the homegrown taxi hailing service has announced that it is shutting down TaxiForSure business.
At the time of acquisition, Ola had said it would maintain TaxiForSure as an independent entity, however it soon started moving drivers from TaxiForSure to its own platform. Along with winding up TaxiForSure operations, Ola has is also laying off around 700 employees in the ongoing restructuring process. The lay off is said to save Ola around Rs. 30 crore in salaries a month.
Ola said in a statement,
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. TFS has contributed immensely towards Ola Micro’s success within a short span of time. Ola Micro has expanded to over 90 cities across India and accounts for the largest share of first time cab users coming onto any mobility platform. This has helped us achieve our objective of building an economy mobility offering for millions of users across the country. 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. 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.
Ola had already pulled the plug on Ola Cafe and Ola Store earlier this year in March.