Indian carmaker Mahindra has signed a Memorandum Of Understanding (MOU) to enter into a strategic alliance with app-based cab service, Ola to empower 40,000 driver partners across India by 2018.
The Mahindra-Ola partnership aims for overall vehicle sales and financing of over US$ 400 million (Rs. 2,600 crores) through the new partnership.
Ola's driver partners can now avail of an integrated and attractive Mahindra-Ola' package which will include special subsidized prices for Mahindra cars.
Other plus points of the partnership include financing with zero down payment, and the best Non-Banking Financial Company (NBFC) interest rates. Mahindra will also subsidize insurance premiums, comprehensive maintenance packages, while Ola will offer exclusive benefits to Mahindra driving cabbies on the Ola platform. Mahindra will also support the family of the drivers with for the children.
Speaking about the partnership, Anand Mahindra, Chairman, Mahindra Group said, "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 social impact on the lives and prospects of at least 40,000 driver-owners, and their families. To me, this is an important strategic alliance for the Mahindra Group, one that I believe will change the contours of our industry, while giving us the first mover advantage in the fast growing Sharing Economy of India."