Mahindra Group has introduced on demand tractor service via a new rental start up called Trringo. This service has been initially introduced in Karnataka with the company to set up 101 hubs by the end of this month with plans to reach 165 centers across India in the near future.
Mahindra Trringo on demand service will come to the aid of farmers who cannot afford to purchase their own farm equipment. These farmers will be able to book tractors on an hourly basis at a fraction of the cost as compared to owning their own vehicles.
With Trringo, Mahindra is also branching out a new way to rent farm equipment to needy farmers. This new initiative is something like how Uber functions. Mahindra will connect farmers who own tractors to those who need it and don’t have. Farmers can call Trringo customer care or can use the Trringo smartphone app and rent tractors or any other farm equipment on hourly basis.
Arvind Kumar, Chief Executive of Trringo estimates that tractor rental business in Karnataka alone could be approximately INR 1,500 crores with prospects to go upto INR 2,500 crores. Launched in March this year, Trringo will consist of 101 hubs across the state of Karnataka with each of these hubs consisting of 5 tractors and 10 farm implements. These will be available to farmers on rent with Mahindra Group charging 10 percent commission from franchise partners.
Working much in the same way as Ola and Uber, Trringo will also reveal details of booking, cost per trip and other essentials, offering a level of transparency to farmers. Trringo has got the backing of Government of Karnataka with hoardings being put up at strategic locations announcing this service to local farmers.
Government of Karnataka has also set apart INR 175 crores to cover 75% capital costs with centers being planned in each taluka. The scheme is set to be a success with estimates of at least 80% farmers seeking farm equipment via this method.
