You are here: Home » Companies
Business Standard

Ola to lay off another 500 to save cash for fight with Uber

700 had lost jobs when it shut TaxiForSure in the first week of August

Alnoor Peermohamed & Raghu Krishnan  |  Bengaluru 

This is article Banner

India’s largest taxi-hailing company Ola will lay off 500 people as it cut costs to fend off global rival Uber. The layoffs will affect contract staff and roles that have become redundant. Ola shut the TaxiForSure business in the first week of August, laying off 700 people in the company it had acquired last year for $200 million. “These were organisational decisions, keeping in mind the interests of employees and business efficiencies,” an Ola spokesperson said. The company is, however, hiring new staff for its technology team. “We continue to hire across the country with over 300 open positions,” the spokesperson added. TOUGH TERRAIN FOR TAXI AGGREGATOR Ola is laying off around 500 employees to save cash and streamline its business Company says the layoffs are part of its annual churn of 3-4 per cent manpower Last month, Ola laid off around 700 employees and shut TaxiForSure, a subsidiary Ola says it is still hiring over 300 people to add to its team of 6,000 Uber has become more aggressive in India after losing to Didi Chuxing in China Ola’s is streamlining operations when Uber has shifted its focus to India. Uber does not want to repeat the mistakes it made in China that forced it to sell out to local rival Didi Chuxing after burning $2 billion. Uber and Ola are trying to capture the biggest chunk of India’s taxi-hailing market that is expected to grow to $1.7 billion (Rs 11,400 crore) in gross booking value in 2016.

Uber has a fleet of 350,000 taxis, lagging behind Ola’s 450,000 cabs and 100,000 yellow-and-black taxis and autorickshaws. Uber has kicked off a price war in India after raising $ 3.5 billion this year from Saudi Arabia’s Public Investment Fund. Last year, it committed to spend $1 billion in the country. Ola has raised over $900 million in funding since 2015. A planned $1 billion in fresh funding has not materialised. Ola’s losses were Rs 796 crore on revenue of Rs 421 crore in 2014-15, according to its last disclosure to the ministry of corporate affairs. Uber has not disclosed its India numbers so far.

MONTHLY STAR

Business Standard Digital

Business Standard Digital Monthly Subscription
149.00  
subscribe
Complete access to the premium product
Convenient – Pay as you go
Pay using Master/Visa Credit Card & ICICI VISA Debit Card
Auto renewed (subject to your card issuer’s permission)
Cancel any time in the future
Requires personal information

What you get?

ON BUSINESS STANDARD DIGITAL

  • Unlimited access to all the content on any device through browser or app.
  • Exclusive content, features, opinions and comment – hand-picked by our editors, just for you.
  • Pick 5 of your favourite companies. Get a daily email with all the news updates on them.
  • Track the industry of your choice with a daily newsletter specific to that industry.
  • Stay on top of your investments. Track stock prices in your portfolio.
  • 18 years of archival data.

NOTE :

  • The product is a monthly auto renewal product.
  • Cancellation Policy: You can cancel any time in the future without assigning any reasons, but 48 hours prior to your card being charged for renewal. We do not offer any refunds.
  • To cancel, communicate from your registered email id and send the email with the cancellation request to assist@bsmail.in. Include your contact number for speedy action. Requests mailed to any other ID will not be acknowledged or actioned upon.

SMART MONTHLY

Business Standard Digital

Business Standard Digital - 12 Months
1499.00
subscribe
Get 12 months of Business Standard digital access
Single Seamless Sign-up to Business Standard Digital
Convenient - Once a year payment
Pay using an instrument of your choice - Credit/Debit Cards, Net Banking, Payment Wallets accepted
Exclusive Invite to select Business Standard events

What you get

ON BUSINESS STANDARD DIGITAL

  • Unlimited access to all content on any device through browser or app.
  • Exclusive content, features, opinions and comment – hand-picked by our editors, just for you.
  • Pick 5 of your favourite companies. Get a daily email with all the news updates on them.
  • Track the industry of your choice with a daily newsletter specific to that industry.
  • Stay on top of your investments. Track stock prices in your portfolio.

NOTE :

  • This product is a monthly auto renewal product.
  • Cancellation Policy: You can cancel any time in the future without assigning any reasons, but 48 hours prior to your card being charged for renewal. We do not offer any refunds.
  • To cancel, communicate from your registered email id and send the mail with the request to assist@bsmail.in. Include your contact number for easy reference. Requests mailed to any other ID will not be acknowledged or actioned upon.
First Published: Sat, September 03 2016. 00:57 IST
RECOMMENDED FOR YOU