Uber In Talks To Buy Meru? That’s So Anti-Uber

Media reports that Uber is in talks to acquire Meru cabs (after Ola acquiring TaxiForSure).

“Uber will be looking at buying a majority stake in the Indian company. India Value Fund Advisors (IVFA) owns around 80% stake in Meru Cabs and may want to continue holding a minority stake post the deal. The deal may entail a stake sale by IVFA and part of it could also be through fresh equity issuance to infuse cash into Meru Cabs.” [source]

Meru’s operating model is anti-Uberish. Simply put, Meru owns its inventory, while Uber is an aggregator – i.e. zero inventory, high number of transactions and high margin.Meru For Uber, owning inventory translates to increasing liability.

Uber’s Real Issue In India

Well, they totally effed up during and after the rape case.
Not just from a PR point of view, but also from corporate responsibility point of view – globally, the company is very often seen as an opportunistic (which is okay) one with a tinge of arrogance (not okay).
Will Uber change its operating model in India? Given that the company has been run by intellects, I’d sincerely like to believe that the answer is NO.
Uber doesn’t have inventory deficit. They have TRUST deficit – and they need to fix that.

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