India’s biggest taxi hailing service Ola has acquired Chennai-based Geotagg, a firm focused on providing solutions in the field of intelligent transportation systems (ITS), for an undisclosed amount to strengthen its proposed bus-shuttle services project, said a report in The Economic Times.
Bengaluru-based Ola has earmarked investment of Rs 120-150 crore to launch chartered and shuttle intra-city bus services in Bengaluru and Gurgaon, the pilot for which has begun in the Delhi-National Capital Region.
The acquisition of Geotagg, founded by IIT-Madras graduates Akhilesh Koppineni and Krishna Chaitanya, will help Ola provide reliable and robust transportation solutions under challenging traffic conditions through its strong ITS application.
Geotagg is actively supported by the professors at the Transportation Engineering Department of IIT Madras and offers a suite of products for advanced passenger information systems deployed across the web, mobile, and kiosk platforms.
Its GPS-based public information systems solution for buses is specifically developed to address issues specific to urban traffic scenarios such as peak-hour traffic jams, vehicles overtaking, vehicles going detour, etc.
Ola’s move to launch shuttle services will not only help address issue of growing gap in public transport in urban cities, but also help the firm grab a larger customer base as it faces intense competition from rival Uber. Ola currently claims to have a share of about 80 per cent in the app-based taxi aggregation market in India.
Ola was founded in 2011 has so far raised $ 900 million in funding, including $ 225 million in September from global investors including Falcon Edge Capital, Tiger Global Management LLC and Softbank Corp.