Ola to merge with Uber? Founder Bhavish Aggarwal says 'Absolute Rubbish'

New Delhi: According to media reports citing sources with knowledge of the situation, la and Uber, two rival urban transportation companies, are in talks to merge. According to one of the reports, co-founder and CEO of Ola Bhavish Aggarwal recently met with senior Uber executives in San Francisco, California.

Both companies, though, have refuted the allegations.

"Absolute rubbish, "Ola's Aggarwal added that the company is very successful and expanding well in a tweet on Friday. "Other companies are welcome to withdraw their operations from India. We won't ever merge."

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

In a statement, Uber said, "That report is inaccurate. We are not, nor have we been, in merger talks with Ola."

Ola and Uber held talks four years ago when Masayoshi Son's Softbank, a common investor in both companies, pushed for a merger, but the deal fell through at the time. The discussions have now resumed.

Approximately 1,000 Ola staff are reportedly being let go as part of this procedure. To fill positions for its electric mobility company, it is actively hiring. The process has been ongoing in a variety of industries, including those that deal with used automobiles, mobility, hyperlocal, and fintech. According to a report, those who are expected to be laid off have been asked to voluntarily resign. Some employees' appraisals are delayed so that they submit their resignation quickly. 

Uber sold its local food delivery service Uber Eats to restaurant directory Zomato in January 2022, while Ola shut down its grocery delivery service and recently made a substantial investment in its electric vehicle endeavour, Ola Electric Mobility.