Ola CEO Bhavish Aggarwal took to Twitter to quash rumors that Ola and Uber will merge, calling the reports “absolute rubbish”. Uber also responded to the lawsuit, calling the information “inaccurate.”
Absolute rubbish. We’re very profitable and growing well. If some other companies want to exit their business from India they are welcome to! We will never merge. https://t.co/X3wC9HDrnr
— Bhavish Aggarwal (@bhash) July 29, 2022
There are rumors that car sharing companies are in merger talks. After CEO Ola’s recent trip to San Francisco and his meeting with senior Uber officials, the story quickly went viral. In response to Aggarwal’s tweet, “We are very profitable and growing well. If other companies want to leave India, they are welcome too! We will never merge! Uber released a statement saying the companies were “not and have never been in merger talks”.
There is a basic story as to why these inferences are made. When Softbank Japan , a joint investor of the two companies, promoted the merger 4 years ago, the two taxi aggregators had a conversation similar to that one. No agreement was reached at the time, but the latest event revived and revived all the conjecture. As both have dominant positions in the Indian industry and fierce competition with each other, Ola and Uber have spent billions of dollars to attract new users, offer discounts for passengers and incentives for drivers.
Naturally, the pandemic has affected the operations of both general companies, as demand has fallen and jobs have been cut as a result.