Ola, Uber Cab Aggregators To Merge

Posted By:
Subscribe to GoodReturns
For Quick Alerts
Subscribe Now  
For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

    SoftBank, a Japanese conglomerate company that owns majority stake in home-grown Ola and Uber is mulling consolidation of the two cab-hailing companies in India to cut down on cost.

    Ola, Uber Cab Aggregators To Merge

    SoftBank is on a consolidation spree in the business segment all across the globe. In a more recent move, the company invested $2 billion in Ola while in Uber it pumped $1 billion. SoftBank Vision Fund has 26% controlling stake in Ola while in Uber it holds a lesser stake.

    The alarming competition among Softbank-backed cab aggregators is being cited as the main reason for such a merger plan which is putting a drain on the company's resources.

    In India, the ride-hailing market in India values at around $15 billion of which Ola has 56-70% market share with 9,00,000 cabs operating whereas Uber has just 3,50,000 cabs.

    Dara Khosrowshahi, CEO, Uber is quoted saying in one of the leading business dailies, "We'd, of course, look at any deals that can add value to our partners and shareholders, but we believe in controlling our own destiny in India."

    "Talks have been on between the senior executives of both the firms (Uber and Ola)," said a person with knowledge on the development. The deal is expected to be closed in a couple of months.

    Goodreturns.in

    Read more about: ola uber merger ola uber softbank
    Company Search
    Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'

    Find IFSC

    Get Latest News alerts from Goodreturns

    We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more