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.