Uber Technologies Inc and its Indian rival Ola denied reports that the transportation service companies were in talks for a merger.
A few sources reported recently that the two ride-hailing service companies are in talks for a possible merger. The sources revealed that Ola co-founder and CEO Bhavish Aggarwal travelled to San Francisco to meet with top Uber executives recently.
“That report is inaccurate. We are not, nor have we been, in merger talks with Ola,” Uber said in a statement.
Ola’s Aggarwal tweeted, “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.”
The two companies have been slugging it out in an intensely competitive Indian market and have spent billions in incentives and discounts to passengers.
This is not the first time talks of a rumoured merger have emerged. The companies held meetings four years ago, when common investor Softbank had pushed for a merger. A deal did not materialise back then. Those conversations apparently seem to have revived in recent months as both Uber and Ola are facing growth pangs.
Uber sold its local food delivery business Uber Eats to Zomato Ltd in January 2020, while Ola shut down its grocery delivery business and has recently invested billions of dollars in its electric vehicle venture, Ola Electric Mobility.