Ola’s TaxiForsure service is shutting down which will put many laid off and the number of people being laid off could be between 700 and 1000, depending upon various reports , part of growing trend in India’s digital economy as companies that were able to spend lavishly without worrying about the bottom line, are now being pressed to show profits.

In the case of Ola, it’s been fighting against Uber in India and a recent development might have changed the terms of this engagement. In December 2015, Ola reached an agreement  with Chinese giant Didi Chuxing (then Didi Kuaidi) to be part of a global alliance with Lyft and GrabTaxi, to check Uber’s international growth.

As a result, Ola likely has to streamline its operations in order to remain competitive with Uber, as the battle heats up.

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