By Elton Gomes
Indian ride-hailing service Ola announced the acquisition of public transport ticketing and commuting app Ridlr on Tuesday. According to media reports, the deal, inclusive of both stock and cash, is estimated to be over $25 million, however, neither companies have officially disclosed any financial details of the deal.
Through its app, Ridlr allows users to search and book tickets for buses and trains. The Mumbai-based company was founded in 2012 and boasts of partnerships with BEST, Delhi Metro, Mumbai Metro and pilot programs in several other cities.
With Ridlr’s acquisition, Ola will be able to add bus, metro, and train booking to its platforms, increasing mobility options for customers and thereby getting a significant advantage against its rival Uber. “The acquisition complements Ola’s consistent and continued and efforts to integrate its mobility platform with existing public transportation solutions,” the company tweeted, ”welcoming” Ridlr to “the Ola family.”
What this means for the Indian commuter
It seems like commuters will have a one-stop shop on their hands when Ola combines its services with Ridlrs ticketing system in one app.
Bhavish Aggarwal, Olas CEO, said in an interview with PTI, Public transportation serves millions of Indians every day, and powering these needs with real-time information, mobile ticketing, cashless payments, and reliable services is bound to impact their end experience. Aggarwal added that the acquisition adds to the companys efforts in improving the commuting experience.
Ola vs Uber
Competition between both the companies seems to continue despite rumours last week about Japanese conglomerate and investment giant SoftBank brokering a merger between the two. SoftBank currently holds controlling stakes in both companies, occupying about 26% stake in Ola and 15% in Uber.
Also Read: Ola and Uber India on path to a merger led by Softbank
In 2015, Ola bought its smaller rival TaxiForSure for 200 million dollars. It also acquired Foodpanda, a food ordering and delivery app, in December 2017 for about $40-50 million. Ola also took its first steps overseas by launching its services in Sydney in March 2018.
Last week the company also announced that it would be launching a news network to gather and disseminate hyperlocal news. The initiative tentatively called Ola News Network (ONN), will be offering riders valuable and timely insights into traffic, weather and related local information on demand.
Meanwhile, in February, Uber decided to sell its money-losing Southeast Asia business to Grab, a Singapore-based ride-hailing app. By making a jump in the public transport and ticketing market, and two acquisitions in four months, it is certain that Ola wishes to expand further.