BANGALORE: Reportedly, India’s second-largest taxicab company, Ola Cabs recently declared that they acquired TaxiForSure completely at $ 200-million. TaxiForSure has been the third taxicab company in India for last couple years and Uber is at the top spot.

The acquisition will play a huge role on Ola Cabs’ part to run for top spot as the largest taxicab aggregator in India. However, when we learn about the company in depth, it is evident that the company will struggle to grow tall over the leader.

A columnist of Your Story quoted, “complete lack of hoopla around the acquisition…   may seem intriguing.” Pointing at Ola Cabs’ acquisition of TaxiForSure is not very stable on its part and seems fragile. There are some companies in Indian history that are valued too much although it didn’t gross any profit. Yet, the big price on the company makes us think it is a huge money maker.

The principle behind this is the cash-rich investors make their investment in to a field where they can grow quick and earn the big bucks in the Indian market. The investors can take up the beating of soaring business thinking they can set things right. Sometimes, they take off as they expected or they will in the hope to sell themselves to a bigger company.

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