Ola has shut down TaxiForSure (TFS) leading to the layoffs of around 700 employees, reports said on August 17.
TFS was acquired by Ola 18 months ago for USD 200 million.
Some reports however state that the number of jobs lost could be around 1000 but according to one report Ola claims that only 300 jobs have been affected.
“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,” Ola said in a statement according to ANI.
Ola’s aim was to integrate its fleet.
According to reports, Ola says that with “all TFS driver-partners and customers coming on board the Ola app, the integration is now complete”.
Acknowledging that TFS has contributed to the growth and success of Ola Micro, the SoftBank-backed cab service said that it is offering “enhanced severance benefits and outplacement services” to employees who have been laid off, while asserting that it has absorbed as many employees as it could.
Ola’s main competitor is Uber, which has recently merged with rival Chinese company Didi Chuxing. Didi is an investor in Ola. In China, the merger is being seen as Didi’s victory over Uber.
Yet in the expanding India market, Uber and Ola are locked in an intense battle for dominance. In fact Ola buying TFS was to gain an upper hand over Uber.
Now with Uber and Didi coming together, the dynamics of the game is set to change.