As Ola plans investment of INR 5,000 crore in the coming year to expand its newly formed cab leasing business, automakers in the country see this as a threat which could impact their sales and volumes. It is with this in mind that automakers such as Maruti Suzuki India Limited and Mahindra and Mahindra are reportedly planning to buy stake in Ola’s recently launched leasing business.
Ola has set up a subsidiary through which finance for purchase of cabs will be conducted, offering drivers easy finance facilities and other benefits.
In the coming year, Ola will also be investing INR 5,000 crores into the cab leasing business with 1 lakh cabs being added to the fleet. Ola cab leasing business along with both Mahindra and Maruti Suzuki is being entered into on a pilot basis in select cities in the country at an investment of INR 50 crores.
With these financing schemes and partnership with leading automakers in the country, options are also being assessed into auto companies procuring equity stake in the new venture. The leasing program will allow drivers to gain access to the Ola platform at a fee of INR 35,000 while with monthly rentals of INR 15,000 drivers will be able to own the car in a matter of three years.