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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
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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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Ola Expands its Business, Starts Services in UK

The seven-year-old Ola claims to have 125 million users in 110 cities

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Ola enters UK, rides in South Wales.

Indian ride-sharing major Ola on Monday forayed into the UK market by launching its services in South Wales, the company said in a statement.

“Ola will offer the customers in South Wales, including in Cardiff, Newport and Vale of Glamorgan, the option of hailing private hire vehicles and taxis on one platform,” the city-based online cab aggregator said in a statement here.

With a plan to expand across the UK by the end of this year, Ola said it has already obtained the licences to operate in Greater Manchester, in northwest England, where it will begin its operations soon.

Over the past few weeks, the company has received positive feedback from the drivers in South Wales, said Ola UK Managing Director Ben Legg.

“We will work with the local authorities in helping the people with their mobility,” Legg said in the statement.

Ola
Founded in 2011, Ola has been competing against Uber in the ride-hailing market. IANS

As part of launching its services in UK, the company is offering limited discount rides to its customers.

Ola’s UK entry comes about seven months after it announced driving into Australia on January 30 to foray into the international market to rival US-based Uber.

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The Bengaluru-based firm is currently operating in seven cities across Australia including Sydney, Perth, Melbourne, Brisbane, Gold Coast and Canberra.

Founded in 2011, Ola has been competing against Uber in the ride-hailing market.

The seven-year-old Ola claims to have 125 million users in 110 cities. (IANS)

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