The organized taxi service business is seeing a lot of action off late. Just days after Ola’s acquisition of Taxi For Sure, the infamous US based taxi service Uber is in the midst of talks of buying India based Meru cabs. Uber has an aim of increasing its presence in India by acquiring Meru.
According to some sources, Meru is expecting a valuation of $400 million from Uber and the deal hasn’t been sealed yet. Uber, a $40 billion US based company, is eyeing a majority stake in the Indian radio taxi company.
Currently, India Value Fund Advisors (IVFA) has a 80 percent stake in Meru Cabs and it might want to continue holding a minority stake in the company post its deal with Uber is finalized. The acquisition deal could involve a stake sale by IVFA and a part of this could be through fresh equity issuance in order to infuse some cash into Meru Cabs.
According to some source, IVFA was looking to monetize its share in Meru Cabs for a long period of time. It had considered various options for the same and even thought of an Initial Public Offering. But with Ola acquiring Taxi For Sure and the competition in the taxi business heating up, Uber could soon materialize its deal with Meru Cabs.