TaxiForSure Shutting Down- Ola Resource Crunch Leads To Lay-Offs And Migration Of Employees
Employees on the Move
Fate of the Employees
Ola, India’s most popular mobile app for transportation shuts down its TaxiForSure business. As per multiple sources, the company has also laid off approximately 700 employees in one go!
Some drivers on TaxiForSure have been migrated to the Ola platform, while most have been laid off with three-month salary as severance packages. As per people with direct knowledge of the move, about 90% of the staff are being laid off from TFS works in the company’s business development units, call centers and driver relations; as these services are no longer required.
The total cost reduction with these layoffs is close to Rs. 30 crores a month, said an investor with direct knowledge of the company’s financials.
Ola’s history with TaxiForSure
According to a top executive at the company, “Since the acquisition, Ola has been unclear about the brand positioning of TaxiForSure.”
The above statement can further be confirmed as this move has come just a year and a half after Ola has acquired its rival TaxiForSure for $200 million. The acquisition was made to gain market leadership against rival Uber, the most valuable startup in the world.
Over the past few months, the company has been promoting TaxiForSure users to switch to the Ola app to increase their reach. “With all TFS driver-partners and customers coming on board the Ola app, the integration is now complete,” said Ola Spokesperson in a statement.
The executive added, “Silently, the TaxiForSure fleet was transferred to Ola supply and even incentives were more lucrative for Ola vs. TaxiForSure.”
While Taxiforsure application and option to book a Taxiforsure cab is still present in Ola application, this will be phased out over time.
Do you think this step taken by Ola will add to the company’s profits because of their reduction in cost, or will the company suffer from a broken customer base as a result of the shutdown of rival cab aggregator TaxiForSure? Please share your thoughts in the comments section below.
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