Automobile manufacturer Mahindra & Mahindra has introduced a tractor rental service named Trringo, which will be available as a mobile app, reports Techcircle. The company also added that the new initiative will have an initial investment or Rs 10 crore.
Trringo is expected to be launched in five states including Maharashtra, Karnataka, Gujarat, Madhya Pradesh and Rajasthan by this year. The company plans to go live in one regional state by June and then anticipates expansion to four more states by August. The company plans to run the business through a franchise as well an aggregator based business model.
Under the franchise model, Mahindra claims to provide new tractors and relevant equipment to customers, which will be rented out by their franchising partners. Mahindra also plans to set up 80 franchises and 160 hubs for presuming operations. A notable point is that Mahindra embraces a brand-agnostic model by allowing franchisees to rent out non-Mahindra tractors as well.
While under the aggregator model, large farmers who own high-end equipment will be able to rent out their assets to other farmers using Trringo. The company will levy a fixed rate and a variable margin for their services. Mahindra said that it would control the rates on the Trringo app depending on soil conditions. “When there is hard soil then the requirement is different. For different engagements there are different rental rates,” said Arvind Kumar, business head for Trringo.
Recent developments from Mahindra
-In November 2015, HDFC sold its entire stake (4%) in Mahindra First Choice for an undisclosed amount. In the same month, Cox Automotive, a US based digital marketing company, acquired a ‘significant strategic stake’ in the company for an undisclosed amount.
-In October 2015, Mahindra launched SmartShift—a platform that connects cargo owners with transporters. SmartShift will lets users find transporters based on the cargo weight, size and other requirements.
-In September 2015, The Mahindra Group launched an ecommerce portal called M2all, where it will sell all Mahindra products and services. The ecommerce marketplace also has other manufacturers and sellers of ‘complementary’ products including helmets, biking gear, accessories etc.
– In July 2015, the company joined the Google spearheaded Open Automotive Alliance (OAA), an alliance of vehicle manufacturers and device makers from around the world that aim to bring the Android platform to cars.
MediaNama’s Take: Trringo could face a setback if it does not expand its app-only model while considering the fact that Mahindra is eyeing farmers in rural regions through its tractor rental service. Opening up the service through a website, or more importantly through additional outlets might work on Mahindra’s side. Moreover, it isn’t clear how the ‘seasonal rates’ are levied; the only advantage to be noted is that Mahindra is letting its franchising partners to rent out non-Mahindra tractors as well—a win-win situation for both farmers and franchisees.