TAXI FOR

SURE
FAILURE
 TAXI FOR SURE

Taxi For Sure was founded by  

Raghunandan G. from IIM
AHEMDABAD , Aprameya
Radhakrishna from NIT Suratkal
started their business in Bangalore in
the year 2011.
 Why This Business Model
1) Taxi fleet operators had majority of market share not only in Tier I but also
Tier II cities compared to individual taxi driver/owners.
2) These taxi operators had anywhere from a few cars to tens of cars and there
were about 1200+ operators in Bengaluru alone.
3) And as operators make more money (with better matching of supply and
demand by TaxiForSure) they were able to buy more cabs to deploy into the
system.
4) And TFS did not have to worry about security and maintenance of the cab or
professionalism of the drivers since the operators were able to handle this.
 Ola’s attack to take the market

Price Incentive
war s
 Ola’s attack to take the market

Price Incentive
war s
8,000
800
500

25% 49 -4km 1,200

13 – 10 14/km
16 – 13 200 / 10km
 Invester’s

Accel  SoftBank
Helion Venture Partners
Bessemer $210 million
Total of $80 million
 THE AFTERMATH
 Why not UBER?

 Ola acquired TFS by paying INR1,250 crores (US$200

million) in cash and stock on march 2 2015.

 After 18 months long merge OLA had to shut down TFS and
about 700 jobs were lost
ALTERNATIVE STEPS THEY
SHOULD HAVE TAKEN
1. They should have kept their original prices or at least not reduced the
prices so low to incur any loses
2. They should have improved their services and make the services
value for the money for the customers.
3. Instead of using the investors fund to sustain the price war they could
have added more cabs .
4. Focused on the 20% of the top customer
5. Instead of trying to capture more number of customer made more
efforts on retaining them and make loyal customer base.
6. Try getting B2B contracts.
THAN
K YOU