As is the case with many acquistions by rival companies, taxi-hailing company Ola fired the 1,000 staff of TaxiForSure and decided to shut the service down forever, with effect from July 30, 2016. The staff are given 3-month salary as compensation.
According to at least half-a-dozen people with the direct knowledge of the development, about 90% of the staff being laid off from TaxiForSure works in the company’s call centres, driver relations and business development units. The employees that are being retrenched are located across a dozen cities and are being given three months’ salary as compensation, said the people mentioned above. These include current and former employees of the cab hailing company.
ANI Technologies Pvt. Ltd, owner of Ola, had acquired smaller rival TaxiForSure for $200 million in early 2015 when the competition with rival Uber was outnumbering its position. Even after the acquisition, Ola had confined TaxiForSure’s operations to only three cities of Mumbai, Bangalore and Delhi and a token presence in eight other cities. About 1,000 staff were kept on rolls till July 30.
Ola has so far raised around $1.2 billion from Japan’s SoftBank Group Corp and others.
Flipkart, another recent startup which was controversial over postponing IIT recruitments recently has decided to layoff an estimated 700 employees. The days of recession are here again for reckoning?