Mahindra to ride jointly with Ola, eyes Rs 2,600 crore more revenues
9 Sep 2016 12:30 AM GMT
Cab aggregator Ola on Thursday partnered with the Mahindra group that will help foster entrepreneurship among drivers as well as boost the latter's earnings by around Rs 2,600 crore over the next two years. While Mahindra follows its rival Tata Motors which has joined hands with Uber, for Ola this is the second such alliance having been tied up with Nissan India to buy and lend cars to its drivers.Â
These alliances come on the heels of a string of tie-ups between online taxi services and automakers both globally as well as here, to cash in on the rising demand and popularity of these services.
The domestic taxi market is worth nearly around Rs 80,000 crore or around USD 12Â
billion. Under the alliance, M&M and its group companies in the financial insurance and its used car/bike arm Mahindra First Choice, will sell products (its sole car brand Verito to begin with) and services to Ola.
With this, it will earn an additional Rs 2,600 crore over the next two years when it hopes to sell around 40,000 units, Mahindra Group chairman Anand Mahindra told reporters here announcing the tie-up. If the alliance works out as planned, it will give be a big boost to Mahindra, as it has been struggling with its only car model Verito.Â
Uber India Prez meets Nirmala, talks start-up ecosystemÂ
New Delhi: Commerce and Industry Minister Nirmala Sitharaman on Thursday met Uber India President Amit Jain and discussed ways through which the cab aggregator can help in strengthening the ecosystem for startups. In the meeting, the cab aggregator expresses its intention to contribute in the development of startup ecosystem. The ministry suggested the company to do something meaningfull in terms of providing mentorship and connecting venture capital funds to budding entrepreneurs in small cities, an official said. The ministry is taking several steps to promote these entrepreneurs.Â
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