Mahindra & Mahindra is set to acquire 55% Stake in Meru Cabs for a total sum of ₹ 201.5 Crore. This brings it in competition with other radio taxi service providers like Uber and Ola cabs.
Ridesharing and transportation services are on the rise in the country and seem like even automakers have their eyes set on the market. Mahindra & Mahindra has acquired majority stake in Meru Cabs, a Mumbai based transportation network company. The Indian Auto-giant has stated in its press release that they have signed a “Share Subscription and Shareholder Agreement” with Meru Travel Solutions Private Limited, subscribing up to 55% of the Equity Share Capital of the latter. The agreed sum, which is ₹ 201.5 Crore, will be invested in tranches.
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Meru Cabs provides metered radio taxi and cab services in major cities like Mumbai, Delhi, Bengaluru and Hyderabad since April 2007. It is also one of the oldest radio taxi operators in the segment. The services can be availed via various platforms, including their App, website, and call centre.
In the press release Mahindra also stated that following the transfer of the first tranche, the company will reserve the right to appoint new Directors on the board of Meru. Apart from that, the subsidiaries of Meru (Meru Mobility Tech, V-Link Automotive Services, and V-Link Fleet Solutions) will now become subsidiaries of Mahindra & Mahindra.
Mahindra and Meru had a partnership prior to the acquisition. In April last year, the two companies hand joined hands to deploy a fleet of electric taxis in Hyderabad. Mahindra had also launched Glyd, an e-mobility service, in Mumbai earlier this year. Glyd offers office commuters a premium yet a sustainable solution for travel, and the use of electric vehicles ensure zero-emissions. Apart from that, the company has also expressed interest in investing heavy sums in Zoomcar earlier in April this year. It seems like Mahindra is keen on jumping into the shared mobility market.
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