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Old 3rd September 2019, 10:40   #1
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Mahindra will now own 100% of Meru Cabs

According to a media report, Mahindra is set to acquire a 55% stake in ride-hailing firm Meru Cabs. The company plans to invest Rs. 103.5 crore by a fresh issue of shares in tranches.

Mahindra will now own 100% of Meru Cabs-meru.jpg

It has been reported that subsidiaries like Meru Mobility Tech Private Limited, V-Link Automotive Services Private Limited and V-Link Fleet Solutions Private Limited will now be a part of the Mahindra Group.

As per the agreement, the first tranche of investment is likely to be made by October 2019. Mahindra could also acquire shares from True North - an existing shareholder in Meru, for an amount not exceeding Rs. 98 crore.

Meru Cabs began operations in 2006. It is one of the first ride-hailing services in India and operates in Mumbai, Delhi and Bangalore. The company also provides transport solutions to call centres, banks, airlines among others.

Source: NDTV

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Old 3rd September 2019, 10:58   #2
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re: Mahindra will now own 100% of Meru Cabs

What could be Mahindra's game plan?
Well most of the Meru cabs are Mahindra Verito - so are they looking at assured business?
Or they want to expand to delivering services B2B; B2C is going to be dominated by app based firms.
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Old 3rd September 2019, 12:21   #3
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re: Mahindra will now own 100% of Meru Cabs

What I think is...
- Make the car, sell the car
- Bring app based commute & increase market share
- Arrange for bank loan, insurance to prospective cab drivers/owners
- Special discounts for Mahindra cars, bring down inventory
- If they can lease out Mahindra vehicles (like Hyundai), another edge

Nice plan to survive the market spiraling towards depression
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Old 3rd September 2019, 12:40   #4
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re: Mahindra will now own 100% of Meru Cabs

Or, is it to create a captive market for their electric vehicles.
If they can come up with a good battery swap technology, they can use electric cars for intra-city taxi services efficiently.
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Old 3rd September 2019, 16:54   #5
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re: Mahindra will now own 100% of Meru Cabs

Mahindra could be doing it for these reasons:
  • It could be planning to get into ride hailing market. The discounts are almost gone and you have surge prices as well for competitors. At this stage it is well off not spending the money on financing the discounts.
  • Look at increasing Verito/ other electric cars share in the taxi market.
  • Piloting the electric cars at a large scale for the general public to gain confidence. This can also give them volumes and economy for the private passenger vehicle market.

Last edited by aah78 : 3rd September 2019 at 17:06. Reason: LIST added.
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Old 4th September 2019, 14:40   #6
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re: Mahindra will now own 100% of Meru Cabs

Unless they got it for dirt cheap, I really can't think of a single reason why Mahindra should be interested in yesterday's star. Meru is such a has-been.

Anyone else feel Mahindra is spreading itself too thin? They got into EVs with Reva, but have done a shoddy job with it. Ditto with their foray into trucks, then 2-wheelers. IMHO, Mahindra should trim its to-do list, and then excel at what's left on it.
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Old 30th April 2021, 20:21   #7
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re: Mahindra will now own 100% of Meru Cabs

Mahindra to acquire Meru for Rs 97.66 crore.

Quote:
Mahindra has entered into definitive agreements with shareholders of Meru Travel Solutions (Meru) to buy their respective stakes in the company. With this Mahindra will acquire 44.14% shares from private equity investor, True North and others for an amount not exceeding Rs 76.03 crore and 12.66% shares from Neeraj Gupta and Farhat Gupta, for an amount not exceeding Rs 21.63 crore. With this arrangement, Mahindra will enhance its current shareholding in Meru from 43.20% to 100%.

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Old 1st May 2021, 07:10   #8
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Re: Mahindra will now own 100% of Meru Cabs

500 bucks says that - like so many other Mahindra acquisitions - in 3 to 5 years, Meru will be completely dead or sold off. Mahindra will then release a statement saying "the business environment was challenging", but the reality is, someone at Mahindra got excited, bought it and then moved onto the next acquisition. The company has no bandwidth for such lame acquisitions.
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Old 1st May 2021, 16:55   #9
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Re: Mahindra will now own 100% of Meru Cabs

And there we have the famed "Mahindra Touch" to another company.

Meru employees should now start counting their days. I would give it only a few years until this deal tanks, as usual for Mahindra.

Really have to admire the confidence M&M has in it's "acquisition" strategy. No amount of failures can stop them from acquiring another dying / dead company.
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Old 1st May 2021, 22:04   #10
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Re: Mahindra will now own 100% of Meru Cabs

Before long, we can see a lot of Veritos and KUVs on the road inform of taxis .

Looks like Mahindra picked this company to find buyers for Their struggling models. Running a cab business is not like any other business Mahindra is in now. Hard to see synergies.
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Old 2nd May 2021, 10:15   #11
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Re: Mahindra will now own 100% of Meru Cabs

Quote:
Originally Posted by GTO View Post
500 bucks says that - like so many other Mahindra acquisitions - in 3 to 5 years, Meru will be completely dead or sold off.
That was my first thought too but come to think of it, who is completely happy with ola/uber? Solo/daily office traveller may still prefer ola/uber but for family outings, airport runs etc I do feel the need of a more consistent and premium experience. May be company owned cars and company trained and employed drivers can provide that experience. Whether Mahindra will win this is a question mark though.
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Old 2nd May 2021, 10:21   #12
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Re: Mahindra will now own 100% of Meru Cabs

So they are buying a company that buys their cars. Which means in the end they make the cars and then buy it themselves?

Mahindra is probably going to turn Meru into an electric cab company that runs on their useless e-Veritos.
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Old 2nd May 2021, 11:26   #13
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Re: Mahindra will now own 100% of Meru Cabs

Mod Note : Please do NOT post messages that add little or no informational value to the thread. We need your co-operation to maintain the quality of this forum.

We advise you to read the Forum Rules before proceeding any further. Request to post ONLY when you have something substantial to add to a discussion.

Last edited by GTO : 4th May 2021 at 11:27.
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Old 2nd May 2021, 13:14   #14
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Re: Mahindra will now own 100% of Meru Cabs

I always found Meru to provide for a better ride experience. The cabs are normally better maintained compared to an OLA/UBER, and a rule, drivers are punctual.
Hope this does not go the path of Reva.

I dread the prospect of an early morning flight, held at the mercy of OLA/UBER's ride cancellation program.
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Old 7th May 2021, 20:10   #15
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Re: Mahindra will now own 100% of Meru Cabs

Just another new way for Mahindra to absolutely burn money. No wonder they're in tough financial positions. Even for their own life Mahindra can't do a decent acquisition!

Not at all a shocker
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