Ola has tied up with FlexiLoans to offer Ola’s drivers to offer ‘business and need based’ loans of up to Rs 100,000, only for its ‘Ola Star’ or top rated drivers in Mumbai and Bangalore.
FlexiLoans plans to partner with other financiers to offer the service to Ola across the country. FlexiLoans claims to have processed over 500 small business loans (including those for cab owners) in the last 6 months, and claims to have a turnaround time of less than 2 days.
Ola states that it has partnerships with Indifi, Bajaj Allianz, Shriram Group, Neev Finance, PNB, IDBI and Chola among others to offer its drivers personal loans and vehicle insurance. It also claims to partner with car manufacturers Maruti, Ford, Mahindra and Nissan to let its drivers buy cars at discounts.
Ola’s previous tie ups:
– In February 2015, Ola tied up with SBI to extend vehicle financing for its drivers under a new programme called Ola Pragati.
– In March 2015, Ola launched a reward points programme called Ola Stars for drivers based on their monthly performance. This would include benefits like medical insurance, scholarship for children, skill development training to fuel discounts and car-servicing.
– In August 2015, it announced a new programme to incentivize drivers in Delhi with benefits of up to Rs 100,000 and including a discount of up to Rs 60,000 to purchase a new CNG car.
– In September 2015, Ola partnered with Indian Oil to provide its drivers cashbacks of Re 1 for every liter of fuel filled at IOCL stations across India.
For the quarter ended 31 March 2016, ANI Technologies which runs Ola, reported revenues of Rs 51.05 crore from operations and other income in FY 2013-14. This was a growth of over 200% from Rs 16.4 crore in the preceding financial year. Losses in the period stood at Rs 34.22 crore compared to the loss of Rs 22.8 crore in the previous financial year. SoftBank said that Ola’s bookings increased 10 times from the same quarter last year.
Similar initiatives by other companies:
Zoomcar: In April, Zoomcar, the self drive car rental company launched a Zoomcar Associate Program (ZAP) which let Zoomcar users and other individuals buy one or more vehicles which could be leased to Zoomcar and operate on a revenue sharing model. The company would offer bank loans through its lending partners or let users buy a car with cash.
Uber: In November 2015, Uber launched a driver loyalty programme called UberCLUB based on driver performance. In November 2014, it launched a vehicle financing programme with lending firms Shriram Finance, AU Financiers and Toyota Financial Services.