Sunday January 20, 2019
Home Business Indian Popula...

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

0
//
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.

Follow NewsGram on Twitter

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.

Follow NewsGram on Facebook

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

Next Story

Ola Money Postpaid to be Available For all Ola Users

Apart from extending the service to all its customers in coming months the company would also increase credit line offering and billing cycle to 30 days, as per the statement

0
Ola Cabs. Image source: Flickr

Ride-sharing platform Ola on Thursday said its credit payment feature, Ola Money Postpaid which offers a 15-day credit line to passengers, would soon be available to all the Ola app users.

Ola Money Postpaid is a digital credit payment service that allows users to pay for all the expenditure once every 15 days.

“The offering was launched last year as a pilot, and has received good response from customers with 30% growth month-on-month,” an Ola statement said.

Ola Money Postpaid to be available for all Ola users.

At present, Ola Money Postpaid is being used by over 10 per cent of Ola customers.

Apart from extending the service to all its customers in coming months the company would also increase credit line offering and billing cycle to 30 days, as per the statement.

“Ola Money Postpaid will also extend its reach beyond mobility and integrate it into other segments such as food, entertainment and utilities in the coming months. The company also plans to enroll other merchants to create a faster and convenient payment mechanism for customers.” (IANS)