Author(s): Kalyani Srinivas C, Vijaya Kittu Manda, Seethalakshmi. R, Parvathi. V, Manisha Pallavi Chauhan, Aruna Polisetty
Indian Radio Taxi Service pioneer Meru Cabs was losing market share and making losses for several years now. The company was acquired by an automobile major and deep-pocketed Mahindra & Mahindra (M&M). Their entry brought in the much necessary cash lifeline for it, averting a potential collapse for now. However, the newly appointed CEO of the company has to deal with multidimensional issues to bring the company back on track. This strategic management case digs into the underlying causes that lead to the failure, potential turnaround strategies, failed negotiations with drivers, and the concept of managerial myopia. It discusses some perennial long-term issues such as market leadership, the need for innovative business strategies, and HR practices.