Ola To Acquire Radio Taxi Service GCabs in Delhi


To operate legally in the national capital, Indian mobile app service for cab booking, Ola, is in final-stage talks to acquire Gurgaon-based radio taxi service GCabs. The deal is expected to be closed with in a week. This move will help OlaCabs to get required clearance from the transport authorities in Delhi.

As per an ET report, “The due-diligence process is on since January 1. GCabs has about 160 CNG Swift DZires which will be an added benefit,” the person familiar with the deal added. According to the Delhi Government updated norms, the cabs having only NCR permit will be allowed to operate in Delhi, hence the company might apply for a Delhi permit on its own too.

Uber hasn’t resumed operations in Delhi and hasn’t yet applied for a licence. Under the modified scheme, operators will have to maintain a minimum fleet of 200 radio taxis either owned or through an agreement with individual taxi permit holders and start services with at least 50 cabs within a month of the licence being granted.

Cab aggregators don’t operate their own taxis, but provide the technology platform that links taxi owners and operators with passengers. While Uber and Ola work directly with drivers, TaxiForSure works with taxi operators. The Delhi Government had banned all activities by cab service Uber and  other technology based cab providers – TaxiForSure and Olacabs, after one of Uber’s drivers was arrested on charges of raping a woman and also on the grounds of not having a license from the Government to ply in the city. And had recently released the aforementioned norms to allow technology led cab services to operate in Delhi.

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Image Source: Ola