wordpress blog stats
Connect with us

Hi, what are you looking for?

Ola and Mahindra to provide vehicle financing worth $400M to drivers

ola-mahindra-handshake

Cab aggregator Ola has tied up with vehicle manufacturer Mahindra & Mahindra Ltd to provide vehicles on loans to 40,000 driver partners through financing worth $400 million (~Rs 2,600 crore). Both companies have entered into a strategic alliance to provide “Mahindra-Ola” financing package for drivers; it will offer Mahindra brander cars at separate rates, loans with zero down payment from NBFCs, subsidized insurance premiums, and vehicle maintenance packages.

Ola says that the $400 million worth of financing is aimed at “empowering (its) driver partners who otherwise may not be able to invest in a car.” The package will also support drivers with accident insurance and scholarships for their children. Currently the company claims to have over 450,000 vehicles spread across 102 cities including cars and auto-rickshaws combined.

Ola’s previous tie ups for drivers:
-Last month, the company tied up with FlexiLoans to offer Ola’s drivers with ‘business and need based’ loans of up to Rs 100,000, limited to its ‘Ola Star’ or top rated drivers in Mumbai and Bangalore.
– 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.

Ola financials:

For the quarter ended 31 March 2016, ANI Technologies the parent company of 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.

Advertisement. Scroll to continue reading.

Similar initiatives by other companies:

Zoomcar: In April, self-drive car rental company Zoomcar, launched  ‘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.

 

Advertisement. Scroll to continue reading.
Written By

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.

Views

News

Due to the scale of regulatory and technical challenges, transparency reporting under the IT Rules has gotten off to a rocky start.

News

Here are possible reasons why Indians are not generating significant IAP revenues despite our download share crossing 30%.

News

This article addresses the legal and practical ambiguities in understanding the complex crypto ecosystem in India.

News

It is widely argued that the PDP Bill report seeks to discard the intermediary status of social media platforms but that may not be...

News

Looking at the definition of health data, it is difficult to verify whether health IDs are covered by the Bill.

You May Also Like

News

Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...

Advert

135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...

News

Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...

News

By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to our daily newsletter
Name:*
Your email address:*
*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ