Mahindra & Mahindra announced a strategic tie-up with ride-hailing company Ola to add 40,000 Mahindra cars, primarily the Verito, in the following two years. Owing to this alliance, Mahindra is targeting overall sales and financing of over US$ 400 million for which it would be providing Mahindra cars at special prices, attractive financing schemes, zero down payment, best NBFC interest rates, subsidised insurance premiums, comprehensive maintenance packages as well as exclusive benefits in the introduced ‘Mahindra-Ola’ package. In return, Ola will receive access to a one-stop-shop for vehicles and services for its drivers offered by Mahindra.
The ‘Mahindra-Ola’ package focuses on empowering the driver partners to invest in a car and become an Ola partner as well as encourage current partners to add more cars to their fleet under this scheme. The package offerings will be valid for new as well as pre-owned vehicles. Partners will also be eligible for an accident insurance worth Rs 15 lakhs and their children can opt for scholarship benefits.
"This is an initiative whose time has come, one that meets the current and future needs of Indian consumers, particularly younger ones who prefer shared mobility solutions. It also has a positive impact on the lives and prospects of at least 40,000 driver-owners and their families," Anand Mahindra, Chairman of the Mahindra Group said.
“As part of the strategic alliance with Mahindra, the solution will help tens and thousands of aspiring driver-entrepreneurs and will help build significant scale by innovatively building more mobility options and newer use cases in the time to come,” said Bhavish Aggarwal, co-owner and CEO, Ola.
However, during the interaction, Mahindra mentioned that the tie-up is not an exclusive one, leaving the door open for alliances with Uber and other rivals. Mahindra also mentioned that the financial incentives however, are exclusive to Ola.