Cab service provider Ola is shutting operations of its subsidiary TaxiForSure in over 22 smaller cities, migrating it to major cities including Kochi, Trivandrum, Coimbatore, Tiruchi, Madurai, and others.
TFS, in its company blog said, “Everybody needs to change with the times, and we are doing the same. TaxiForSure is migrating to Ola in your city and now we can serve you better. This is a new opportunity for us to set new goals and achieve bigger things,” it said. The blog post also said TFS credits will be transferred back to the user’s bank account, while payment through Paytm will remain. Last month, Ola had announced that it would soon go mobile-app mode in cities it operates.
The move comes five months after it acquired the Bengaluru based rival for around $200 million in a cash and stock deal. Many industry analysts termed the move as a consolidation strategy in the fledgling online taxi services industry.
When contacted, an Ola spokesperson in an email said, “TaxiForSure continues to operate as an independent brand in the top 30 cities with a strong focus on building the most economical brand in personal transportation. The consolidation of TaxiForSure into the Ola app in the next 22 cities is designed to ensure a seamless experience for consumers, straight from the Ola app.”
So far Ola has raised around $677 million in funds from investors like DST Global, Singapore's GIC, Falcon Edge Capital, SoftBank, Tiger Global, Matrix Partners, Steadview Capital and Accel Partners US. Its latest plan to migrate TFS users to its platform in smaller cities is regarded as a move to strengthen its brand identity, as the company has been facing tough competition from US based rival Uber.
Recently, Uber announced its intention to invest $1 billion in India to expand its services. Operating from over 18 cities, India is Uber's second largest market after the US. The startup has also announced its plan to invest $50 million for building a response and support centre in Hyderabad.
Ola starts bug bounty program
Taking tips from its counterparts, Ola has launched a bug bounty programme, under which the company will compensate or acknowledge those who report bugs in its software. It will offer a minimum reward of Rs 1000 for spotting a bug; there is no upper limit. Ola came up with the idea after several hackers claimed the company app was highly vulnerable to cyber threats.
