Ola-UP-MoU

By Salman SH and Sneha Johari

Online cab aggregator Ola has signed a Memorandum of Understanding (MoU) with the Government of Uttar Pradesh to provide entrepreneurship opportunities to 50,000 men and women over the next 5 years in the state. The company will also work with the government to launch Ola Auto, Ola Share and Ola Shuttle in the state.

The new development comes after Uttar Pradesh was slated to have over 10 Smart Cities under the aegis of the Smart Cities project. Ola launched in Uttar Pradesh in early 2014 and currently has a presence in 9 major cities: Lucknow, Kanpur, Agra, Meerut, Aligarh, Allahabad, Saharanpur, Varanasi and Mathura. It claims to have over 2,100 vehicles in the state and expects the number to go up to 20,000 in the next 5 years.

Previous MoUs: In November 2015, Ola had also signed an MoU with the Rajasthan government to train 50,000 youth and women in particular on entrepreneurial skills over the next five years. In September 2015, it signed a similar MoU with the Andhra Pradesh government.

Other Ola developments:

– Earlier this month, Ola Shuttle announced that its service would be available for corporate customers who signed up via Ola Corporate. This move would enable corporate employees who wished to travel via Ola Shuttle to pay for their ride centrally through the Ola Corporate (which was launched last month) accounts of their companies.

– Last month, it appointed Raghuvesh Sarup as its chief marketing officer (CMO). Sarup would join the company in February and be responsible for marketing across the brand and profit & loss for all categories.

Uber’s MoU: The Union Labour Ministry of India partnered with online cab aggregator Uber to let those people who want to sign up as drivers on the platform access the National Careers Service to do so. Uber had also signed a memorandum of understanding with the Rajasthan Government to provide 35,000 opportunities and launch its ridesharing service in the state. Uber claims to have over 250,000 drivers on its platform and 40% market share in the country.

Ecommerce MoUs:

– In February 2015, Flipkart signed an MoU with CSC e-governance India Limited to help rural artisans and SMEs to build and establish their brands nationally. It also signed an MoU on August 2014 with India’s textile ministry to list products from rural Indian handloom weavers and craftsmen on its platform.

– In January 2015,  Snapdeal signed an MOU with the Footwear Design and Development Institute (FDDI) and the Ministry of Commerce and Industry, for training design students.

– In the same month, eBay had signed a memorandum of understanding with the Delhi Hindustani Mercantile Association (DHMA), an association of over 4,000 Indian fabric traders, in an attempt to get more traders online.