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Ola MoU with AP Govt: Fixed fare packages, revenue share on bookings & more

Cab aggregator Ola has signed a Memorandum of Understanding (MoU) with the Andhra Pradesh government to improve transportation facilities across the state. As per the agreement, Ola will be expanding its services to several other smaller cities and towns in Andhra Pradesh, beyond the six they’re currently operational in – Vijayawada, Visakhapatnam, Guntur, Rajahmundry, Tirupati, and Nellore.

Ola will create new packages specifically for tourist destinations in the state and festivals. The company and AP Tourism have also agreed on a revenue share model for cab bookings, which will allow users to book cabs through AP Tourism counters at airports, railway and bus stations, and Haritha Hotels & Resorts across the state.

In Vijayawada, fixed fare packages for specific routes within the city, such as to and from the airport and railway station among others, will be offered to riders under Ola Rental, which allows users to rent a car on hourly packages. At the time of launch in June last year, Ola Rental charged a base fare of Rs 750 for four hours that included travel of up to 40 km. It will also be setting up Ola kiosks at various locations in Vijayawada, and the other five cities, for easier access.

In Bangalore, the company already has similar partnerships with Bangalore Metro Rail CorporationKempegowda International Airport and Bangalore City Junction Railway Station for dedicated kiosks, and designated parking and pick-up points.

Ola is also working with the state government to start a skill development programme to provide training to driver partners.

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This MoU is possibly an extension of the agreement the company had signed with the Andhra Pradesh government back in September 2015. At the time, Ola had said it would invest Rs 150 crore and add 40,000 vehicles to its platform for the state over the next three years. Skill development training for drivers was also part of this agreement.

MoU with NSDC: In December last year, the cab aggregator had signed a MoU with the National Skill Development Corporation (NSDC) for training and skill development of 100,000 drivers in the next 3 years, with an investment of Rs 100 crore. This after Ola, Rise India and NSDC partnered to launch a dedicated training center for drivers in Chapra district in Bihar, in October 2016. Ola also had a similar MoU with Maruti Suzuki to train 40,000 individuals and drivers in safe driving, and provide drivers with assistance in getting commercial licenses and vehicle financing after a 30 day training program.

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