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Ola shutting down TaxiForSure, adds value-based services for customer convenience
MUMBAI: Ola has taken a leap in saving cash burn rate by shutting down TaxiForSure, the Banglore-based cab service it acquired last year. It has removed about 700 employees in the process of reworking its business model.
Ola is taking measures to widen its lead over Uber and crown itself as the space leader in India.
The web based cab service has launched value added services like providing free WiFi for customers of its premium Prime service. It also launched the mini cab service, the cheapest cab option.
In the process of shutting down TFS, employees from call centres, business development and driver relations were removed from their positions. The Integration is complete with TFS driver-partners and customers coming on board the Ola app.
According to the management, they have employed as many TFS employees for open roles in Ola to support our growth. For positions that cease to exist as a result of this transition, Ola has offered a three-month salary compensation.
Ola, backed by Softbank acquired TFS in 2015 at the cost of $200 Million with the intention of competing with Uber and widen its presence.
The competition is expected to intensify further in the coming months as Uber expands its focus on the Indian market after selling off its China operations to Didi Chuxing. Interestingly, Didi is a minority investor in Ola and also shares a common investor in SoftBank.
The functions of TFS slowed down right after taking over. It is learnt that the company has been unclear about brand positioning of TaxiForSure and so the TFS fleet was transferred to Ola supply. Insiders say the incentive for Ola was more lucrative for Ola than TaxiForSure. According to reports, the company will save about Rs 30 crore every month by shutting down TFS. The option for TaxiForSure will phase out from Ola App over time.
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Maharashtra revokes Ola, Uber, Rapido bike taxi licences
Temporary e-bike taxi permits cancelled as firms fail to meet state rules
MUMBAI: Maharashtra’s roads are set to see fewer zipping two-wheelers after the state government pulled the plug on provisional licences granted to bike taxi giants Ola, Uber and Rapido. Transport Minister Pratap Sarnaik announced in the Legislative Council on Monday that temporary permissions would be revoked.
“These companies were given permission for just a month and were required to submit certain documents. Since they have not complied, their temporary licences are cancelled. This is to ensure illegal bikes do not operate on our roads,” Sarnaik said.
The move follows the Maharashtra E Bike Taxi Rules 2024, designed to generate employment for local youth and offer commuters a cheaper, greener ride option. The rules, approved in August 2024, allow electric bike taxis in cities with over one lakh residents.
Under the policy, only electric vehicles can ply as taxis, and operators had 30 days to fulfil licensing and compliance requirements. Yet, officials claim many continued operations without meeting these conditions. Sarnaik added that a large number of bike taxis currently running in Mumbai and the wider Mumbai Metropolitan Region are illegal.
In a firm enforcement twist, the government has instructed authorities to focus on vehicle owners rather than riders when registering cases. Safety concerns, particularly for women passengers, and accident complaints have also been flagged by the transport department.
Since April 2024, Regional Transport Offices have taken action against 130 non-compliant bike taxis, collecting fines exceeding Rs 33 lakh. Authorities say further measures will follow to ensure services adhere to regulations before returning to city streets.
Maharashtra’s bike taxi saga has been a rollercoaster. Initially banned in January 2023 due to concerns over private vehicles ferrying passengers, the sector was later formalised through an electric bike framework in 2024. Provisional licences were granted in 2025, but the government now warns that any bike taxi operating on city roads without proper permits will be considered illegal.
Adding to the transport shake-up, the government has also halted the issuance of new auto rickshaw permits from March 9 to ease urban traffic pressures and safeguard livelihoods of existing drivers. A fresh standard operating procedure for future permits is set to go before the state cabinet soon.
Maharashtra commuters may have to find alternative rides as the state reins in its two-wheeled taxi revolution, leaving app-based bikers in a legal limbo.
