SoftBank Looking To Merge Ola And Uber?

After selling it’s South Asian Business to Grab, global ride hailing startup Uber may reportedly merge with the Bengaluru based cab aggregator Ola with SoftBank playing the role of a matchmaker.

According to sources close to the development, Japanese investment giant SoftBank, called for a merger between the two startups and the final details would be revealed during the coming months. Reuters reported, executives from Uber and Ola met at least twice over the last 12 months, the most recent being Uber CEO Dara Khosrowshahi’s visit to India in February.

However, before news surfaced regarding the merger, Khosrowshahi claimed the company was a 100% committed to the Indian market. “We continue to make aggressive strides in India and we consider India as one of our forts. How we perform as a company after 10 years very much depends on our success in India,” he added. But if the company is planning to go public in 2019, it is essential for the company to curb its losses.

While both the spokespersons for Uber and SoftBank declined to comment about this development, an Ola spokesperson said in a statement, “In India’s transformative digital journey, Ola will always be an active and integral part for decades to come. SoftBank and all other investors are committed in realising this ambition.”

The Business Standard reported SoftBank is in favor of an acquisition but both the companies are looking at having a controlling stake in the combined entity. As per a report by Counterpoint Research, Uber, which currently operates in 30 Indian cities has more than 35% share of the taxi market. Ola, on the other hand, has more than 45% market share, operating in 110 cities.

Speaking about a potential merger in the Indian market, Dara Khosrowshahi remained cryptic and said, “We will look at any deals that can add value to its partners and shareholders, but we believe in controlling our own destiny in India.” Currently, India is among Uber’s top three markets following the United States of America and Latin America, accounting for 10 percent of its trips globally.