OlaCabs In Talks To Acquire Radio Taxi Service Provider GCabs

OlaCabs In Talks To Acquire Radio Taxi Service Provider GCabs

In a bid to operate legally in national capital, OlaCabs, the country’s biggest cab aggregator is in process to acquire Gurgaon-based radio taxi service GCabs. The company is in final talks with the GCabs.

According to the sources, the deal is expected to close within a week time. This move will help OlaCabs to get required clearance from the transport authorities in Delhi.

The person directly involved with the deal said, “The due-diligence process is on since January 1. GCabs has about 160 CNG Swift DZires which will be an added benefit to Ola.”

However, sources said Ola may apply for a Delhi licence separately in the next few days. Earlier, owning cabs was necessary to obtain a radio taxi licence in Delhi.

As per the modified scheme, operators will have to maintain a minimum fleet of 200 radio taxis either owned or through an agreement with individual taxi permit holders and start services with at least 50 cabs within a month of the licence being granted.

Cab Aggregators don’t operate their own taxis, but provide the technology platform that links taxi owners and operators with passengers. While Uber and Ola work directly with drivers, TaxiForSure works with taxi operators.

Author

Gopi Arora

Inc42 Staff
News Editor @Inc42. Prior to this, worked at Bhaskar News, SME News, Dainik Jagran & Euromoney Institutional Investor Magazine.
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