Olacabs to acquire TaxiForSure for Rs. 1,250 crore

Olacabs is reported to be gearing up to buy out rival company TaxiForSure for $200 million (Rs. 1,250 crore). The takeover will see Olacabs grow stronger against competitors such as Uber in the fight for dominance in the taxi aggregation market in India.

The takeover will see Olacabs pay cash and offer stock with backing from Japan's SoftBank. The term sheet for the deal is believed to have been signed and the finer details will be worked out over the next ten days.

TaxiForSure is believed to have held talks with Uber and Carzonrent before finalising the deal with Olacabs. The company, valued at $125 million, was looking for looking for funding to stay competitive in the market.

While Olacabs, like Uber, work only with drivers, TaxiForSure works with taxi operators. This means that the takeover will give Olacabs access to taxi operators, which will be an advantage over Uber. 

Source: Economic Times