Ride-hailing service Ola scored an agreement with Mahindra & Mahindra Ltd.to offer cars cheaply to drivers, a move aimed at fending off competition from Uber Technologies Inc. The memorandum of understanding will allow Ola cab drivers to purchase Mahindra cars at special prices and low cost loans along with subsidized insurance premiums and maintenance packages. The alliance will also target $400 million (Rs 2,600 crore) in sales in the same two year period. This will give Mahindra the first mover advantage in the fast growing sharing economy in India.
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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.
Responding to media soon after the press conference, Bhavish Aggarwal, Co-Founder, and CEO, Ola disclosed that they are excited to work with an iconic brand like Mahindra.
Indian ride-hailing firm Ola and the country’s top utility vehicle maker Mahindra and Mahindra are set to announce a joint initiative on Thursday, according to an invitation sent to the media.
The Mahindra-Ola package focuses on financial inclusion by empowering driver partners who otherwise may not be able to invest in a auto, to purchase one at a highly affordable price, and at upto zero down payment.
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In June, Tata group struck a similar deal with OLA’s competitor Uber to provide the potential driver owners offers on cars and financing. The package also includes clauses for accident insurance and scholarships for their children. Meanwhile, the cab providers focus is on building a system that provides support for the entrepreneurial growth of driver-partners across the country.
