Ride-hailing firm Ola is planning to partner with Indian automotive giant Mahindra & Mahindra to raise the fleet strength on Ola’s platform by 40,000 vehicles over the next two years. The tie-up between these two companies is going to empower Ola’s hold in the ongoing competition between taxi companies.
In this collaboration, Ola drivers will be eligible for Mahindra financing, where they would get up to 100 percent financing on new and pre-owned vehicles. Moreover, drivers would also get the services of Mahindra’s insurance arm. Also, Ola drivers would come under M&M’s corporate social responsibility scheme.
Carmakers are now partnering with different emerging firms to deal with the disruption that has been impacting the industry. Ola’s CEO, Bhavish Aggarwal, has a five year plan for the company where he is aiming to atleast own 5 million cars under company’s umbrella.
The Mahindra-Ola tie-up comes close on the heels of a partnership between Tata Group and Uber, which announced its intent of adding 20,000 cars under its umbrella and likewise the app-based aggregators have tied-up with various car makers like Toyota, Nissan-Datsun amongst others to expand the fleet and drive the shared-mobility concept with today’s youth. (via Economic Times)
Through this strategic alliance, they aim overall vehicle sales and financing of over US$ 400 million (Rs. 2,600 crores).
This unique alliance, which brings together two of India’s most prominent brands, seeks to encourage micro-entrepreneurship amongst drivers, to address India’s growing mobility needs.