Rumours Suggest Mega-Merger Of Uber & Ola! But Ola Founder ‘Rubbishes’ This Development
According to sources in the know, Ola and Uber are discussing a possible merger, a possibility made stronger by the fact that Ola’s co-founder and CEO Bhavish Aggarwal met top Uber executives in San Francisco, US recently.
Both had contemplated the idea four years ago as well since mutual investor Softbank had pushed for a merger.
However this did not materialize.
These talks have been brought up once more now that both companies are facing growth issues.
Both cab hailing companies went neck and neck to dominate the Indian market and spent billions of dollars on driver incentives and discounts to attract customers.
However the rivalry died down in recent years as the pandemic slowed demand for their services with both companies cutting flab and tightening operations.
Ola shut its quick delivery and used car businesses already while shifting focus on its core mobility with a leaner team.
A month ago, Uber had strongly denied any move for a sale, responding to a Bloomberg report that suggested the company wanted to sell its India unit a year ago.
Later on an Uber spokesperson responded, “We are not, nor have we been, in merger talks with Ola.”
From Ola’s side, a statement suggested that the company is looking at acquisitions to consolidate its position instead of a merger.
The statement read,
“Ola is one of the most profitable ride hailing companies in the world with a strong balance sheet. We are the market leader in India and are much bigger than other player. Hence, merger of any kind is completely out of the equation. We believe that India has a lot more opportunity to unlock when it comes to mobility services. As a strong vertically integrated mobility company we will further consolidate our position by any acquisition in the Indian market, if at all.”
Aggarwal squashes rumors.
Ola Chief Executive Bhavish Aggarwal on late Friday tweeted. “Absolute rubbish. We’re very profitable and growing well. If some other companies want to exit their business from India they are welcome to! We will never merge.”