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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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UK’s OnlyFans seeks US investor at $3bn valuation after owner’s death
The adult video platform is seeking stability after the death of its billionaire owner
LONDON: OnlyFans is looking for a new partner. The London-based adult video platform is in advanced talks to sell a minority stake of less than 20 per cent to Architect Capital, a San Francisco-based investment firm, in a deal that would value the business at more than $3bn (£2.2bn).
The move is driven by an urgent need for stability. Leonid Radvinsky, the Ukrainian-American billionaire who owned OnlyFans, died of cancer last month at the age of 43, leaving the future of one of Britain’s most profitable privately held businesses suddenly uncertain.
The choice of Architect Capital is not arbitrary. The firm has deep expertise in financial services, which aligns neatly with OnlyFans’ ambitions to offer banking products to its creators, many of whom have long struggled to access basic financial services because of the nature of their work.
The numbers behind OnlyFans are, by any measure, staggering. The platform posted revenues of $1.4bn in the year to 30th November 2024, with a pre-tax profit of $684m, up four per cent on the prior year. Payments to creators totalled $7.2bn over the same period, a rise of nearly ten per cent. Radvinsky personally collected $701m in dividends from the business in 2024 alone, on top of more than $1bn in such payments he had already received. The platform, run through its parent company Felix International, hosts 4.6m creator accounts, with performers keeping 80 per cent of subscription proceeds and the platform pocketing the remaining 20 per cent. It has 377m fan accounts in total.
The current minority stake talks represent a notable scaling back of ambitions. In January, OnlyFans was reported to be in discussions with Architect about selling a majority stake of 60 per cent. Before that, the company had explored a sale to a consortium led by Forest Road Company, a Los Angeles-based investment firm. Neither deal materialised.
OnlyFans has built an enormously lucrative business on content that mainstream finance has long refused to touch. Now, with its owner gone and a $3bn valuation on the table, it is looking for the kind of respectable institutional backing that might finally persuade the banks to take its calls.
