However, all the Indian taxi operators went in loss or with small profit for the fiscal year 2013-14. Later, in fiscal year 2014, Ola said it conceived loss by one fold of 34 crore from the previous year. On the other hand, TaxiForSure took the beating of 17 crore from last year.

The cause for this is easy to interpret as the cab operators spend very big on marketing and offer heavy discounts to attain large number of customers and to maintain their growth. But the recent suspected rape of a passenger by a driver on the Uber cab in September 2014 worsened the Taxi operators in many ways.  

As Indian government took care of the issue and called for the necessary installation of pricey safety features in the cab, hindered success of aggregators further more. And the Uber incident gave the need for taxi regulation in India as a result; at Delhi all the cabs were banned.

Moving on, acquiring a firm when it is doing well so that the investor can push the same product further without difficult rather than buying a completely closed down firm. Ola’s acquisition of TaxiForSure is both good and bad news for India’s startup, as Ola is settling for at least some parts of it and they are already into a same firm.

Being said, Ola can pick things where TaxiForSure left as the Indian market evolves and Cab aggregation grows gradually. But this could also mean the dawn of the age of more realistic growth when it comes to startups and the dusk of the age of easy capital.

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