Cab aggregators, Ola and Uber were heading for a merger, however, both the companies denied media reports. Both companies are leaving it behind in the highly competitive Indian market and have spent billions in incentives and discounts to travelers.
A report in Economic Times said that Ola CEO Bhavish Agarwal had met top Uber executives in San Francisco, United States, citing two sources.
About 10-point guide Ola-Uber merger
1) In an official statement, Uber denied merger talks with its rival outfit Ola. “That report is wrong. Uber said, we are not in merger talks with Ola and neither are we.
2) Ola also denied the news of its merger with Uber. Ola CEO Bhavish Aggarwal tweeted, “Absolutely rubbish. We are very profitable and growing well. If some other companies want to exit their business from India they are welcome! We will never merge.”
3) An Ola spokesperson also said, “Ola is one of the most profitable ride hailing companies in the world with a strong balance sheet. We are the market leader in India and are much bigger than other players. Therefore, any kind of merger is completely out of the equation.”
4) Uber sold its local food delivery business Uber Eats to Zomato Ltd in January 2020, while Ola spun off its grocery delivery business and invested billions of dollars in its electric vehicle venture, Ola Electric Mobility.
5) The companies resumed talks to merge their businesses in India in 2018 in a deal being struck by common investor SoftBank Group Corp. Interactions between senior executives of firms over the years indicated that the domestic Ola would take over. Above Uber India
6) Reportedly, the two companies were sitting for merger talks four years ago when SoftBank led by Masayoshi Son, an investor in both the banks, pushed them for the merger.
7) Ola reported a huge jump in losses in the financial year 2017 (FY17). While net revenue increased 677 crore over FY 2016 revenue 1,178 crore, operating loss widens 911 cr to 3,731 crore.
8) The Central Consumer Protection Authority (CCPA) has issued notices to the ride-hailing companies of Ola and Uber for alleged unfair trade practices and violation of consumer rights.
9) The primary issues alleged in the notice include deficiency in service, inadequate consumer grievance redressal mechanism, improper levy of cancellation charges and charges for add-on services through pre-marked boxes without explicit consent prior to each ride , CCPA said.
10) According to an Economic Times report, Ola may lay off around 1,000 of its employees as it is increasing hiring for its electric mobility business.
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