Ola integrates TaxiForSure amid reported lay-offs

India is one of the world's fastest-growing transport markets

Indian biggest taxi-hailing company Ola has shut down a taxi operator it acquired last year, and will reportedly lay-off more than 700 employees.

Ola bought local rival TaxiForSure (TFS) for $200m (£153m) in 2015, saying at the time the company would continue to operate separately.

However, Ola has now integrated the brand and some of its employees amid stiffening competition with Uber.

Ola did not disclose the actual number of lay-offs.

However, local media reports said between 700 and 1,000 people would lose their jobs.

The firm said it had integrated the business and some employees into a low-cost service, Ola Micro, launched in March.

"In the course of the integration, we have absorbed as many TFS employees for open roles in Ola to support our growth.

"For positions that cease to exist as a result of this transition, we are offering enhanced severance benefits and outplacement services to help affected employees pursue new career opportunities."

Earlier this month, Uber announced it was selling its business in China to rival Didi Chuxing in exchange for a stake in the combined company. Did Chuxing is an investor in Ola.

Asia has become a major battleground between traditional transport companies and "sharing economy" firms such as Uber.