While the cab-hailing majors, Ola and Uber, are busy handling the strikes by their drivers on the frontend, Ola is in talks to acquire Uber’s Indian operations, reported Business Standard. The deal will be facilitated by the common stakeholder, SoftBank.
Sources close to the matter told Inc42 that Ola will acquire Uber’s operations in India and the deal has become fierce. The finer details of the deal are still under discussion and will be revealed in the coming months.
The person quoted above didn’t reveal the executives involved in the deal but went on to inform that the deal is being negotiated by SoftBank, which is the biggest investor in both the companies.
Earlier, Rajiv Misra, CEO of the SoftBank Vision Fund, stated that the company should focus on recovering its market share in the US and growing in key European markets, to have a faster path to profitability. He had also added that Uber exiting unprofitable countries was not solely about cutting its losses but that growth prospects were more promising in its core markets.
Prior to these developments, Uber had come out strongly to claim that the company is 100% committed to India. Soon after, Dara Khosrowshahi, CEO of Uber, visited India and reiterated,
“We continue to make aggressive strides in India and we consider India as one of our forts. How we perform as a company after 10 years very much depends on our success in India.”
However, the person close to the possible deal said that with Uber targeting initial public offering in the US in 2019, it is necessary for the company to cut off its losses, which the SoftBank has been continuously focussing on.