Mahindra & Mahindra Ltd has signed a Memorandum of Understanding (MOU) to foray into a strategic partnership with Ola. As part of the deal with the India’s largest app-based transportation platform, both Mahindra in association with Ola will empower 4000 driver partners across the country by 2018. The main aim of the alliance is to boost the vehicle sales to a tune of over Rs. 2600 crores (US$ 400 million).
Mahindra-Ola deal empowers drivers
By entering into a partnership with Mahindra & Mahindra, Ola driver partners will be able to avail an integrated and attractive Mahindra-Ola package. The package consists of Mahindra cars at special rates, attractive financing with zero down payments, the industry-best NDGC interest rates. Moreover, eligible partners will be able to avail subsidized insurance premiums, comprehensive maintenance packages including exclusive benefits on the Ola platform.
Commenting on the deal, Anand Mahindra, Chairman, Mahindra Group disclosed that the initiative will meet the current and future needs of Indian consumers. The new deal will mainly benefit young generation since they will prefer shared mobility solutions.
Mahindra-Ola alliance to have positive social impact
Anand added that the latest alliance will have a positive social impact on the lives and prospects of at least 40,000 driver owners including their families. He is of the opinion that the new deal will set new benchmarks in the auto industry. It gives the company the first mover advantage in the fast-growing sharing economy of India, adds Anand.
Touted to encourage micro-entrepreneurship amongst drivers, Mahindra and Ola will also explore key specific areas in the field of mobility solution development and unique transportation use cases.
Responding to media soon after the press conference, Bhavish Aggarwal, Co-Founder, and CEO, Ola disclosed that they are excited to work with an iconic brand like Mahindra. The new deal will strengthen the mission of building mobility for a billion people of India.
Aggarwal said that the company has created a unique solution to assist several aspiring driver-entrepreneurs in realizing their dreams. The alliance with Mahindra will substantially help driver partners to adopt advanced mobility options and new use cases in the future.
Mahindra-Ola deal focused on financing
Mainly focussed on the financial segment, the Mahindra-Ola package empowers driver partners who are unable to purchase a car. They can now purchase the car at an affordable price at up to zero down payments and then drive business with the app-based cab ride company. The package also includes clauses for accident insurance and scholarships for their children.
Based on Mahindra’s Rise philosophy, the sole purpose of the company is to empower power with the right products and services to enhance the lifestyle. Meanwhile, the cab providers focus is on building a system that provides support for the entrepreneurial growth of driver-partners across the country.