Uber Believed To Be Keen On Acquiring Meru Cabs

Uber received a lot of flak in India not too long ago. But the company could be looking to operate in the region through other ways. A new report from The Economic Times suggests that Uber is looking to acquire India based Meru Cabs service for an undisclosed amount.

This move would help Uber build some marketshare in the region as Meru Cabs is a popular name in India. The report further suggests that Meru is looking for somewhere close to $400 million for the acquisition. This should be chump change for a company like Uber which had a recent valuation of $40 billion.

India Value Fund Advisors (IVFA) hold an 80% stake in Meru and it is said that they will look to hold a minority stake in the company even after the acquisition. The exact terms of the acquisition are not known yet, but it seems like the decision could be finalized very soon.

The move makes sense considering that rival cab service Ola was believed to be planning the purchase of Taxi For Sure last week. So it is understandable why Uber would want to step in and join forces with Meru.

IVFA was said to be contemplating an IPO or Initial Public Offering for Meru Cabs in a bid to increase revenues. So it seems to be a win-win situation for both Meru and Uber if this acquisition does in fact goes through.

Both Meru and Uber have denied to comment on these reports, so we'll have to wait for more information to pop up. [The Economic Times]