Mahindra is reported to be working on entering into a strategic alliance with Uber or Ola or both. The arrangement, if attains fruition, would not just be restricted within the aggregators and Mahindra’s auto sector but will explore synergies across the conglomerate’s different business verticals.
In addition to making cars, the Mahindra Group also has used car business, finance services and a well established IT business (Tech Mahindra).
From a taxi aggregator’s point of view, an alliance with such a multi-faceted organization could be a one-stop shop deal which would help optimize operations and cut down costs significantly. It’s to be noted that Mahindra had acknowledged earlier the threat taxi aggregators like Uber and Ola pose to private car ownership in the future. The alliance appears to be an attempt to embrace the disruption rather than battle it.
While an alliance of this nature would be first of its kind, automakers investing in taxi aggregators is not unheard of. Toyota recently bought a small stake in Uber, VW has a stake in Gett and GM has invested in Lyft.
Moneycontrol reports that none of the parties involved – Mahindra, Uber and Ola – have responded to its query.
Via – Moneycontrol.com