Bhavish Aggarwal, Co-Founder and CEO, Ola, spoke to BusinessLine on the road ahead after the acquisition of TaxiForSure.
Is it too early for consolidation in this industry, considering it is dominated by unorganised players?
We look at it differently. It is about synergies; and TaxiForSure complements us in a lot of ways. Both of us believe in revolutionising urban mobility. Hence, there is a strong rationale for this acquisition.
At present, we will continue to do business the way we have been doing. TaxiForSure has built a strong brand around the value proposition, with offerings such as Tata Nano cabs. We have strengths in other areas and we will continue to offer these services.
A few weeks back TaxiForSure had told us they are looking to raise $100 million in funding. Will they continue to look for this?
Now, it will be Ola that will invest in the business as and when needed.
Of the driver-led and fleet operator models, which is the better one?
There is no right or wrong model. Both are working in India at present. At the end of the day, it depends on what you are targeting and what your objective is.
Taxi drivers are being pampered right now with a lot of cash being handed out. Do you think it is a good practice in the long run?
Right now, this industry in India is at the growth stage. I don’t necessarily agree with this observation. It is market forces that determine things. In this case, it is proportional to demand and we will continue to invest in drivers.
Will the combined entity also bring down driver attrition?
Attrition (which for Ola is around 6 per cent all-India) will definitely come down.
Will you look at more acquisitions?
I can’t comment on this but we will look at acquisitions that fit our needs.
Any plans to take the company public?
Right now, we are focussed on growth, but eventually we will look at an initial public offering.