The Indian ride-hailing company, Ola is stretching its arms into Self-Drive car rental domain. After putting its foothold in the international market and showing interest in electric vehicles, by introducing Self-Drive Service, Ola is now preparing to evolve the car-rental market. To commence “Self-Drive Service”, Ola will endow money over $500 million in the segment to grow its mobility services.
“Homegrown ride-hailing platform Ola will invest over $500 million to launch a ‘self-drive’ service aimed at broadening its portfolio of transportation solutions,” said two anonymous sources to the Indian daily news, Economic Times.
The investment will emerge in the form of equity and debt in the coming years. Further, the Indian ride-hailing firm, Ola will deploy up to 10,000 vehicles in major cities in the offing, apprised an anonymous source to the Indian daily news.
Affirming the plans to examine self-drive offering, an Ola spokesperson told the Indian daily news, Economic Times that basis market feedback, we will pilot (the service) in various formats such as rentals, subscription and corporate leasing in select cities in the coming weeks.
With the introduction of Self-Drive car services, the users, who will rent the car, will be picked as well as dropped in the decided time period.
Investment for Self-Drive Car service
According to the reports of the Indian daily news, the Indian ride-hailing firm, Ola will raise debts through Ola Fleet Technologies to invest in the new entity. Till now, the company has relied on the funds gathered in the form of equity capital from the investors namely, the Japanese company, Softbank and US investment firm, Tiger Global.
At present, Ola has raised money up to $3.67 billion and was recently valued $6 billion in a funding round.
Joining Hands With Automotive Companies
To expand the business, Ola recently joined hands with automobile companies Hyundai Motor and Kia Motors and together raised money up to $300 million. This collaboration has been done to initiate mobility solutions as per the Indian market.
“The (self-drive car rental service) will be launched in the coming weeks with a focus on top 5-7 markets,” said a company executive to the Indian daily news.
After the emergence of Self-Drive Car in the market, Ola will make become the largest ride-hailing company to provide this service in India.
“The (self-drive car rental service) will be launched in the coming weeks with a focus on top 5-7 markets,” said a company executive to the Indian daily news, Economic Times.
The move to initiate Self-Drive service is done to expand the transport solutions across electric vehicles and scooters with a view towards ensuring sustainability and positive unit economics.