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Indian Popular app-based cab Ola likely to announce new initiative with Mahindra Group

Anand Mahindra, the Chairman of the $17.8 billion Mahindra Group, said the arrangement will also fulfil the current and future needs of Indian consumers

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Ola Cabs. Image source: Flickr

Sept 11, 2016: Automobile maker Mahindra & Mahindra (M&M) and Ola, the app-based cab service provider, announced a tie-up on Thursday to sell Mahindra vehicles worth about Rs. 2,600 crore to Ola-affiliated drivers over two years on easy financing terms. The agreement between the two entities envisages selling the vehicles to about 40,000 drivers by 2018 at “special” prices, along with other benefits.

“Ola’s driver partners can now avail of an integrated and attractive ‘Mahindra-Ola’ package which will include Mahindra cars at special prices, attractive financing with zero down payment, and the best NBFC interest rates, subsidized insurance premiums, comprehensive maintenance packages, as well as exclusive benefits on the Ola platform,” M&M said in a regulatory filing to the Bombay Stock Exchange (BSE) on Thursday.

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Anand Mahindra. Image source: Wikimedia Commons
Anand Mahindra. Image source: Wikimedia Commons

Anand Mahindra, the Chairman of the $17.8 billion Mahindra Group, said the arrangement will also fulfil the current and future needs of Indian consumers, particularly younger ones who prefer shared mobility solutions, said to Reuters.

Ola co-founder and CEO Bhavish Aggarwal said that the partnership will pave the way for similar arrangements in the future. M &M shares closed at Rs. 1,485.50, down 0.21 percent.

The company sold 18,246 passenger vehicles in August 2016, 29 percent more than the 14,198 units sold in August 2015. Pravin Shah, President and Chief Executive (automotive), Mahindra & Mahindra, said that the upcoming festival season will boost sales for the company.

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According to Reuters report, M&M is also involved in manufacturing tractors, two-wheelers, and electric cars. Recently, the company renamed its electric car business as Mahindra Electric. Ola and global rival Uber have burned through money to capture market share in India, one of the world’s fastest growing taxi markets worth nearly $12 billion.

Ola, last year in 2015, announced a tie-up with Nissan Motor India to buy and lend cars to its drivers. And last month, Tata Motors’s parent Tata Group, became the first Indian carmaker to tie-up with Uber. Overseas, General Motors in January announced a $500 million investment in Lyft, with plans down the road to develop an on-demand network of self-driving cars.

– prepared by Shayari Dutta with inputs from various agencies

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Hyundai, Kia Invest $300 mn in India’s Ride-hailing Giant Ola

The nine-year-old firm had set up in 2018 Ola Electric Mobility Ltd to use battery-run cabs as a pilot project at Nagpur in Maharashtra

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Ola Cabs. Image source: Flickr

In their single biggest investment ever, Hyundai Motor Co and its affiliate Kia Motors Corp on Tuesday announced an investment of Rs 2,068 crore ($300 million) in India’s leading ride-hailing cab aggregator Ola.

The agreement will see the three companies collaborate on building India-specific electric vehicles and infrastructure and developing unique fleet and mobility solutions, Hyundai said.

“This partnership will also significantly benefit driver-partners on our platform, as we collaborate with Hyundai to build vehicles and solutions that enable sustainable earnings for millions of them, in the time to come,” said Bhavish Aggarwal, Co-founder and CEO of Ola.

Hyundai Motor and Kia Motors will invest $240 million and $60 million respectively in Ola.

As part of the strategic collaboration, the companies have agreed to co-create solutions to operate and manage fleet vehicles, marking the Hyundai Motor Group’s first foray into the industry, as they expand operations from automobile manufacturing and sales to total fleet solutions.

Ola Cab. Facebook

The partnership will offer Ola drivers various financial services, including lease and instalment payments, while vehicle maintenance and repair services are expected to enhance customer satisfaction, Hyundai said.

Hyundai, Kia and Ola also agreed to coordinate efforts to develop cars and specifications that reflect the needs of the ride hailing market.

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Ola earlier this month raised Rs 400 crore from its early investors, including Tiger Global and Matrix India, to fund its electric mobility business.

The nine-year-old firm had set up in 2018 Ola Electric Mobility Ltd to use battery-run cabs as a pilot project at Nagpur in Maharashtra. (IANS)