In order to boost its market share in India, US-based on-demand car service Uber is looking to acquire a home grown radio taxi service Meru Cabs which is currently valued at around USD 400 million.
As per an ET report, India Value Fund Advisors (IVFA) owns around 80 percent stake in Meru Cabs and if the deal goes through, it may want to continue holding a minority stake, also a fresh equity can be issued to infuse more cash into Meru Cabs. However in a separate report, Meru is denying any such movements.
Recently, there were also a news in the media that Ola, is in talks to acquire its rival company TaxiForSure for about USD 200 million to compete against Uber in the Indian taxi aggregation market.
These technology led cab aggregators are trying to acquire already operational taxi businesses ever since the Government laid down clear rules for these services to operate.
Founded in 2011 by Neeraj Gupta, Meru Cabs currently having its operations in 15 cities and looking forward to expand in other cities as well. Uber offers its services in 53 countries and over 200 cities and also valued at around USD 40 billion. Last month, Uber had raised USD 1.6 billion in convertible debt from Goldman Sachs’ wealth management clients.