Taxi aggregator Ola has merged its TaxiForSure operations with its Ola Micro service, the company said in a statement. It was earlier reported that it had shut down its operations through TaxiForSure – a rival service it had acquired last year – and laid off around 700 of its employees as a cost-cutting measure, according to The Economic Times.
The firm said in a statement, "TFS has contributed immensely towards Ola Micro's success within a short span of time...With all TFS driver-partners and customers coming on board the Ola app, the integration is now complete."
However, Old did not confirm the number of staff it laid off with this integration, which was done over the past year and a half. The statement added that they had "absorbed as many TFS employees for open roles in Ola" and had offered "enhanced severance benefits" and "outplacement services" for employees in "positions that ceased to exist". According to an investor, this step has helped Ola reduce costs by Rs 30 crore a month.
The company had been cutting down its TaxiForSure operations and moving drivers to its own platform, despite saying earlier that it will maintain it as an independent entity, Business Standard reported.
A number of top-level executives of TaxiForSure left the company after Ola acquired the Bangalore-based firm for $200 million (Rs 1,330 crore approximately) in March 2015. It was one of the biggest consumer internet deals in India, according to Livemint.