Uber and Ola could settle for a merger soon
A possible merger between Uber and Ola is on the cards in India. Japan’s Softbank, which is a common investor in both Ola, which is India specific, and Uber, a global taxi aggregator service, is reported to be carrying on with talks for a merger between the two companies in India. Softbank owns a 26 percent stake in Ola but has a lesser stake in Uber. If the merger occurs, Ola will take over Uber’s operations in India.
The move will reportedly be driven by Softbank so that there is not much drain in resources for operations, as the Ola and Uber share a rivalry in the country. Softbank will surely benefit as a result of the merge if it happens as it would immediately stop the competition that they faced among each other.
Ola controls over half of the cab aggregation in the Indian market, reports BGR. If the merger goes through, it would make the combined entity the dominant organization in India.
Executives of both companies have met several times in the past in what is being reported as possible final talks for the merger. Uber had sold its South-East Asia ops to Grab. Softbank is concerned that Uber is spending a lot of money in hopes of remaining competitive outside the US. As Softbank owns a large stake in Ola, it can possibly use its control over the firms to come to a consolidation, reports BGR.