Go Back   Team-BHP > Buckle Up > Street Experiences


Reply
 
Thread Tools Search this Thread
Old 17th August 2016, 15:38   #1
Senior - BHPian
 
dZired's Avatar
 
Join Date: Jun 2012
Location: Jaipur
Posts: 1,719
Thanked: 7,400 Times
Default Ola shuts down TaxiForSure; 700 employees laid off

Ola has officially shut down operations of its TaxiForSure (TFS) business. Around 700 employees have reportedly been laid off in the process.

Ola had acquired TaxiForSure in March 2015 in a deal worth $200 million. This move was made to maintain market leadership against the fast growing rival - Uber. At the time of acquisition, Ola had made it clear that TFS would work as an independent entity. But eventually, the company started moving drivers from TFS to its own platform. This reduced traffic on TFS, thus resulting in the said shut down.

Ola claims that TFS has been integrated to the Ola platform with the launch of Ola Micro. This has thus made operating another platform redundant.

The company has not commented on the exact number of employees been affected by the transition. Though Ola has claimed that most of the employees have been absorbed within the Ola business, there are a few roles that ceased to exist after the transition. The company claims to be helping those employees offering enhanced severance benefits and outplacement services to pursue new career opportunities.

All this comes as an effort to reduce burn rate of operations of Ola in order to sustain the tough competition being given from Uber, which is the world's most valued start-up.

Source: Business Standard

Name:  ola_taxiforsure.png
Views: 2533
Size:  125.4 KB
dZired is offline   (6) Thanks Reply With Quote
Old 17th August 2016, 17:41   #2
GTO
Team-BHP Support
 
GTO's Avatar
 
Join Date: Feb 2004
Location: Bombay
Posts: 46,543
Thanked: 80,250 Times
Default Re: Ola shuts down TaxiForSure; 700 employees laid off

Sad. Feel terrible for those 700 employees.

Sharing an incredibly well-written article by an incredibly talented writer - Ashish Mishra.

Behind TaxiForSure's Sellout

Quote:
Over the previous 18 hours, Raghu, as he is popularly known, had practiced the speech, playing the sentences over and over again in his head. He would start by saying that in the three-and-a-half year journey of TaxiForSure (TFS), he had never thought that a day like this would ever come. That he had never planned for this. That it was the worst moment of his entire TFS journey.

Now that the moment had arrived, at around 2.30pm on a warm March afternoon, at TFS’s office in Bengaluru’s Koramangala, on the terrace, in front of almost 200 nervous employees, Raghu was overcome by emotion.

He gave himself a few seconds to recover. And then a few more.

The previous 18 hours had been tough. He had barely slept, knowing what was around the corner. Monday had started way earlier than usual. He woke up at 5am but there wasn’t much to do, so he idled around and, then, when his two-and-a-half-year-old son woke up, he made him breakfast. At about 7.30am, Raghu and his wife, Shilpa, left home. Their destination was TFS’s first office—the company had started here in 2011 with just two people—Raghu, 33, and Aprameya Radhakrishna, 34. It was a 100 sq. ft terrace office; No. 855, 4th Floor, 7th Main, JP Nagar, Bengaluru-78.
GTO is offline   (7) Thanks Reply With Quote
Old 17th August 2016, 17:52   #3
RSR
Distinguished - BHPian
 
RSR's Avatar
 
Join Date: Nov 2011
Location: Chennai
Posts: 1,621
Thanked: 4,530 Times
Default Re: Ola shuts down TaxiForSure; 700 employees laid off

This is very sad for the laid off employees. I hope they're scooped up quickly by other startup firms!

From a business point of view, TaxiForSure's exit was always on the cards after Ola took over TFS. It was only a matter of when rather than if.

TaxiForSure was not a major player in Chennai, and I found the availability of their cabs to get progressively lower with time (from the Ola app). It was quite evident that Ola was planning to shut down TFS by steadily migrating driver partners to their own service.

Last edited by RSR : 17th August 2016 at 17:56.
RSR is offline   (1) Thanks Reply With Quote
Old 17th August 2016, 19:36   #4
BHPian
 
Join Date: Feb 2010
Location: Kitchener
Posts: 196
Thanked: 107 Times
Default Re: Ola shuts down TaxiForSure; 700 employees laid off

Quote:
Originally Posted by GTO View Post
Sad. Feel terrible for those 700 employees.

Sharing an incredibly well-written article by an incredibly talented writer - Ashish Mishra.

Behind TaxiForSure's Sellout
Sad story. I used Taxi For Sure in Bengaluru many time and I liked it very much. And i liked the jingle "sixty sixty ten ten" played every time in PVR cinemas quite catchy and for once I felt ads worked.
Rubbertramps is offline   (2) Thanks Reply With Quote
Old 17th August 2016, 21:59   #5
BHPian
 
avdhesh15's Avatar
 
Join Date: Jan 2014
Location: Mumbai
Posts: 517
Thanked: 524 Times
Default Re: Ola shuts down TaxiForSure; 700 employees laid off

Quote:
Originally Posted by dZired View Post
Ola has officially shut down operations of its TaxiForSure (TFS) business.
It had to happen - it's not the first and certainly won't be the last. Only reason it's making news is because of the purchase price of $200mn.

Check out THIS article which talks about more such incidents.
avdhesh15 is offline   (4) Thanks Reply With Quote
Old 20th August 2016, 10:24   #6
GTO
Team-BHP Support
 
GTO's Avatar
 
Join Date: Feb 2004
Location: Bombay
Posts: 46,543
Thanked: 80,250 Times
Default Re: Ola shuts down TaxiForSure; 700 employees laid off

Quote:
Originally Posted by avdhesh15 View Post
Check out THIS article which talks about more such incidents.
Interesting. This particular paragraph stands out. Why fight a competitor when you can kill him with some VC funds?

Quote:
Ola’s decision to buy (and now shut TFS) is regarded as a masterstroke by analysts and investors. By buying TFS (mostly in stock), Ola got rid of an annoying rival and became the only new-age Indian cab-hailing company investors could put money in. TFS also helped Ola extend its lead over Uber and focus all its energies on fending off its American rival rather than fighting on two fronts. Within six months of the TFS deal, Ola’s valuation soared more than five times to $5 billion when it raised $500 million from SoftBank, Tiger Global Management, DST Global and others.
GTO is offline   (2) Thanks Reply With Quote
Old 20th August 2016, 10:33   #7
BANNED
 
Join Date: Dec 2011
Location: Chennai
Posts: 818
Thanked: 1,647 Times
Default Re: Ola shuts down TaxiForSure; 700 employees laid off

Acquiring a company, cherry picking and then killing it isn't new.

It's usual growth strategy.

This one's news because it's more visible.

Most don't even make it to newsrooms.
VeyronSuperSprt is offline   Reply With Quote
Old 20th August 2016, 14:16   #8
Senior - BHPian
 
androdev's Avatar
 
Join Date: May 2007
Location: bangalore
Posts: 1,508
Thanked: 1,432 Times
Default Re: Ola shuts down TaxiForSure; 700 employees laid off

At the time of TFS sale, everyone in the know was aware TFS ran out of money and it was going to be dead any minute. TFS was a really dumb company without any serious technical/operational assets. VCs did some backroom dealings to facilitate the sale primarily to help fellow VCs. The sale had no material impact on Ola as a company. Indian VCs do lot of these 'you scratch my back, I will scratch yours' M&A.
androdev is online now   (4) Thanks Reply With Quote
Old 20th August 2016, 17:39   #9
Senior - BHPian
 
shankar.balan's Avatar
 
Join Date: Apr 2008
Location: BLR
Posts: 8,053
Thanked: 5,304 Times
Default Re: Ola shuts down TaxiForSure; 700 employees laid off

Quote:
Originally Posted by androdev View Post
At the time of TFS sale, everyone in the know was aware TFS ran out of money and it was going to be dead any minute. TFS was a really dumb company without any serious technical/operational assets. VCs did some backroom dealings to facilitate the sale primarily to help fellow VCs. The sale had no material impact on Ola as a company. Indian VCs do lot of these 'you scratch my back, I will scratch yours' M&A.
Well said.
And the TFS founder made big bucks and now goes about "advising" and "giving gyaan" to other humbler folks...bah!
The VC's are single handedly guilty in creating their own frankensteins by way of mad investments in all sorts of half baked hare brained things and the general behaviour of these young engineers and MBA's who run about like headless chickens also is hare brained because all of them want to hit the top by way of "valuation" without really working too hard or smart.
A 'startup" worth its salt, needs to have a clear idea on what it is offering and a view to its revenue stream and profitability. The old dicta and discipline of the "brick and mortar" has to be applied as with the science of normal common sense business!
shankar.balan is offline   (2) Thanks Reply With Quote
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search


Similar Threads
Thread Thread Starter Forum Replies Last Post
The Indian Taxi Revolution - Uber, Ola, TaxiforSure, Meru etc. balajisv The Indian Car Scene 899 25th July 2017 10:33
Ola & Uber might suffer ban in Karnataka. EDIT: Ola gets KA License dZired Street Experiences 94 10th September 2016 20:34
Diesel Cars: Down, down, down! Market share = 34% S2!!! The Indian Car Scene 66 2nd June 2016 16:21
Supplier CEO attacked and killed by laid-off workers Amien Shifting gears 35 23rd September 2009 18:53
9th December,a day to remember for those who laid down their lives so we can breath ECM Shifting gears 10 12th December 2006 23:21


All times are GMT +5.5. The time now is 13:46.

Copyright ©2000 - 2017, Team-BHP.com
Proudly powered by E2E Networks