In a move to reduce cash burn, Ola the largest cab service provider in the country has shut down Taxi for sure services. The company is set to lay off around 1000 employees across the cities.
Ola has acquired Taxi for sure the previous year in the month of March. Now it has ended up all the services of TFS via Ola and gave the complete operations to itself.
Reports say that employees from call centres, driver relations and business development units will be laid off, and compensation will be provided in next three months.
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Ola, however, did not go for larger integration of Taxi for sure, as it kept the operations handled separately. More over the exit of TFS can be attributed to the failure to provide driver’s number to the customers while booking.
Ola said in a statement “The TaxiForSure (TFS) value proposition as an economy brand for customers, has been seamlessly integrated into the Ola platform with the launch and rapid adoption of Ola Micro. TFS has contributed immensely towards Ola Micro’s success within a short span of time.”
“Ola Micro has expanded to over 90 cities across India and accounts for the largest share of first-time cab users coming onto any mobility platform. This has helped us achieve our objective of building an economy mobility offering for millions of users across the country.” the company added.
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“As part of this integration over the last 18 months, we have achieved immense operational efficiencies, which have resulted in an improved experience for customers and driver-partners alike. In the course of the integration, we have absorbed as many TFS employees for open roles in Ola to support our growth. For positions that cease to exist as a result of this transition, we are offering enhanced severance benefits and outplacement services to help affected employees pursue new career opportunities.” said Ola in a statement.
Experts say that it is a process to stay strong in the business battle, as Uber is now concentrating completely in India, after loosing China. Though Ola stays much ahead of Uber in India, it doesn’t take long to attract customers with good discounts. Ola currently provides micro, mini, sedan and out station services which is evident to be one of the most successful cab services in terms of popularity and safety.