‘The buy will benefit both customers and driver-partners’

Online cab aggregator TaxiForSure has finally gone under the hammer after months of speculation over whether its founders will sell out so soon. In an interview with BusinessLine , the company’s co-founder and CEO, Raghunandan G, shares the reasons for the exit and what the future holds for the industry.

Don’t you think it is too early in the day for TaxiForSure to have hit the sale button?

TaxiForSure is a fast-growing start-up and we saw clear synergies in the complementary value that this acquisition brings in; it is also good for all the stakeholders.

It was the right decision to sell the company as this will benefit customers and the driver partners, who are both key to the ecosystem.

What was the basis for the valuation? Analysts claim Ola paid too much. What is the equity structure post-acquisition?

The complementary value this acquisition could bring was clear and they decided to take it forward.

There is a clear synergy in terms of the value created. Both brands operate complementarily. At this stage, we cannot comment on the equity structure.

Will there be more consolidation in the industry now?

There is always scope for such opportunities.

Will both companies, at some point in time, merge as one entity?

In principle, we are in the same business.

The acquisition opens up opportunities to work together at multiple levels and a lot of cross-learning for both sides.

Since the focus and offerings are different, we have decided to continue with TaxiForSure as a separate entity.

Will the promoters get into another stream of business?

The TaxiForSure founders bring valuable experience to the table and have built the company into what it is today.

Arvind Singhal, the COO, will now lead TaxiForSure as CEO. Both the founders will be involved in an advisory capacity for a certain period.

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