Mobile app-based taxi aggregator Ola (formerly Ola Cabs) has ceased operations for TaxiForSure brand in 22 Indian cities and is migrating accounts to Ola, according to a blog posted on TaxiForSure's website Monday.
TaxiForSure was acquired in a cash and equity deal by Ola in March this year for $200 million (roughly Rs. 1,279 crores), and its co-founders Raghunandan G and Aprameya Radhakrishna quit the company the following month.
"Everybody needs to change with the times, and we are doing the same," reads the post. It adds TFS credits will be transferred to the user's bank account, and promotional credits will be transferred to Ola Money, while Paytm wallets will remain untouched.
The 22 cities where it will cease to exist as a brand are: Ambala, Bhavnagar, Coimbatore, Dehradun, Hubli-Dharwad, Jabalpur, Jamnagar, Jamshedpur, Kochi, Lucknow, Madurai, Mangalore, Patna, Raipur, Ranchi, Sholapur, Tiruchirappalli, Trivandrum, Ujjain, Varanasi, Vijayawada, and Visakhapatnam. For now, it seems like TaxiForSure will continue to exist for now as a brand in Indian metros.
Ola had announced last week that it would go mobile app only across its 100 cities of operations, the app added Ola Money as a payment option. The company recently launched Ola Store, an on-demand grocery delivery service, and is reportedly in talks to raise Rs. 3,150 crore ($500 million). Ola currently aggregates a fleet of over 200,000 vehicles in over 100 cities in India.
Founded in 2001, Ola has raised $677 million in six funding rounds so far, most recently raising $400 million (roughly Rs. 2,558 crores) in its Series E in April 2015, out of which $100 million (roughly Rs. 630 crores) was earmarked towards fueling expansion and growth of TaxiForSure.
Ola had integrated TaxiForSure's hatchbacks into its app in June,we reached out to ask if the brand will cease to exist in 22 cities now that its accounts are now being migrated to Ola. The company's response is below.