Ola and Uber in merger talks; Bhavish Aggarwal meets Uber executives in San Francisco
According to two sources in the know, Ola’s co-founder and CEO Bhavish Aggarwal recently met with top Uber officials in San Francisco, US, to discuss a prospective merger. Those discussions appear to have resurfaced in recent months, as both Uber and Ola face growing challenges.
Cab-hailing businesses pushed intensely for dominance in the Indian market, spending billions of dollars on driver incentives and passenger discounts. However, the competition has cooled in recent years as the pandemic has reduced demand for app-based cab hailing in India, with both companies trimming flab and streamlining operations.
Ola has already shut down its quick delivery and used car businesses, opting to focus on its core mobility with a smaller crew. Meanwhile, Uber strenuously denied any plans for a sale a month ago in response to a Bloomberg report alleging that the company considered selling its India operation a year ago. Uber did not react to inquiries about the two businesses’ negotiations or Aggarwal’s visit.
Ola did not respond to questions on the talks or Aggarwal’s meeting with Uber executives. However, an Ola statement indicated that, rather than a merger, the firm will consider acquisitions to strengthen its position. “With a healthy balance sheet, Ola is one of the most profitable ride-hailing companies in the world.”
According to them, they are the marketplace leader in India and are much bigger than other participants As a sturdy vertically included mobility business enterprise they can further consolidate their function by using any acquisition in the Indian market. “We are not, nor have we been, in merger talks with Ola,” said an Uber spokesperson.