The tie-up comes as Ola, which is owned by ANI Technologies Pvt., faces increasingly intense competition from Uber in India’s growing market for ride-hailing services. Uber has identified India as its next battleground after its costly battle for riders in China ended with it selling its operation there to Didi Chuxing Technology Co. Under the initial pact with Mahindra, Ola drivers will get discounted prices on Mahindra cars and more attractive loan terms including zero down payments. The drivers will also receive subsidized vehicle insurance premiums and comprehensive maintenance packages, as well as accident insurance and scholarships for their children.
India’s Mahindra, Ola Team Up as Uber Looms
Ola hopes the alliance will draw more drivers into its fold as it plots to fend off competition from Uber. Ola has previously announced plans to add 100,000 drivers to its existing base of 450,000 drivers by the end of December.