Ola and Uber merging? Here is what we know so far
India Today
Ola and Uber were reported to be heading for a merger after a slump in revenue, but both companies have now denied the claims.
Ola CEO Bhavish Agrawal has refuted reports of a possible merger with Uber. The ride-hailing giants have been competing against each other in India. But a report stated that Agrawal met with the top executives of Uber in San Francisco, to discuss a possible merger with Uber in India. The report also mentions that the two companies had discussed the possibilities of a merger before as well, but the deal did not materialize. The report highlights that both companies have witnessed a slump in revenue because of which they are considering a merger.
Ola CEO Bhavish Agrawal rubbished the Economic Times report that talked about the possible merger between two companies. Taking to Twitter, Agrawal said, “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.”
Uber too has denied being in merger talks with Ola. The US-based car-hailing giant said, “That report is inaccurate. We are not, nor have we been, in merger talks with Ola," Uber said in a statement.
Four years ago, the two companies that fiercely competed against each other, reportedly sat down for merger talks when Masayoshi Son-led Softbank, which is an investor in both the firms, had pushed for a merger but the deal could not materialize back then.
As per reports, Ola and Uber have spent billions on incentives and discounts to customers but, despite all that, they have not witnessed a meteoric rise in revenue. Uber sold its food delivery business Uber Eats to Zomato in 2020 and Ola shut its grocery delivery business. Ola has now invested in the electric mobility business.
Ola is reportedly in the process of laying off 1000 of its employees, but at the same time, the company is aggressively hiring for its EV business. An ET report revealed that Ola is deliberately delaying the appraisal process for employees it wants to fire. However, Ola is looking to hire people for its EV business.
“Ola is planning to hire about 800 people for cars alone and additionally for cell development. Even as they are letting go of people, there are more people coming in. It is a repurposing process for the company rather than a cost-cutting process,” a source close to the development told ET.
