Mahindra and Mahindra has signed a MoU with Ola to enter into a partnership that aims to enrol 40,000 driver partners across India by 2018. With this partnership, Mahindra and Mahindra is targeting a business of over Rs 2,600 crore from vehicle sales and financing.
In an official release, the Mahindra and Mahindra has stated, "This unique alliance seeks to encourage micro-entrepreneurship amongst drivers. The two companies will also be looking at various other sectors where a joint collaboration can happen to introduce new-age mobility solutions. With the two companies forming an alliance, the existing Ola driver partners will now be eligible to make use of a Mahindra-Ola package."
Under this special package, driver partners can avail of Mahindra vehicles at a lower price, along with attractive financing and zero down payment. The official release also states that "the best NBFC interest rates, subsidised insurance premiums, comprehensive maintenance packages along with exclusive benefits on the Ola platform" will be up for grabs. Additionally, the package will support driver partners in terms of accident insurance and scholarships for their children.
Commenting on their alliance with Ola, Anand Mahindra, chairman, Mahindra Group, said, This is an initiative that meets the current and future needs of Indian consumers, particularly younger ones who prefer shared mobility solutions. It also has a positive social impact on the lives and prospects of at least 40,000 driver owners and their families. This is an important strategic alliance for the Mahindra Group which will change the contours of our industry."
Mahindra isn't the only automobile manufacturer to invest in companies offering such ride-sharing or cab-hailing services. In May this year, BMW had invested an undisclosed sum of money into Scoop Technologies, a maker of carpooling application. Even Toyota has invested in Uber while Volkswagen has invested Rs 2,000 crore into Gett, which is also a car-hailing company. Ford has also invested heavily in Zoomcar, around $15 million. Ford cars such as the old and new Figo as well as the EcoSport are being extensively used in the Zoomcar fleet.