Tata Motors is open to acquire stake in services like Uber, Ola
Tata Motors strongly believes that the new generation customers are showing more preference to sharing cars over owning them. Companies such as Ola and Uber and offering such opportunities to customers and are set to become major players in this segment in the future. With this future possibility in view, Tata Motors has revealed that they are open to buy stake in app based cab service providers like, Uber and Ola.
Tata Motors has already associated itself with Uber, and seen terrific results. Thanks to their alliance Uber to supply 20,000 fleet vehicles, which was formed earlier this year, they have seen a twofold growth in its fleet segment sales.
Tata Motors decision to seek alliance with Uber and Ola comes after both General Motors and Ford Motors have made inroads into the shared mobility segments and alternative technologies while it seeks to company with changing market trends. General Motors has invested $500 million in Lyft, a competitor of Uber along with another Chinese car rental company while Ford purchased a shuttle service provider.
Also read – Using Ola or Uber much cheaper than owning a car
Besides GM and Ford, automakers in India such as Mahindra and Mahindra, Maruti Suzuki, Toyota Kirloskar and Nissan Motor India also have alliances with Uber and Ola while even BMW India has recently entered into an alliance with Ola offering cheaper credit, after sales support and buyback guarantee.
All major car makers around the world are opening up to the fact that it is quite possible that in the future their majority of customers will be app-based services like Uber and Ola, instead of individuals like you and me. It is because of this reason, buying stake in such companies today, makes solid business sense for car makers if they want to succeed tomorrow.
via Economic Times