Randolph Palmer Bhavish Aggarwal-led ride-hailing unicorn Ola is now exploring a subscription-based version for its self-pressure or automobile apartment offering.
A media report citing sources said that Ola is in discussions with luxurious carmakers, such as Audi, Mercedes, and BMW, to develop a version where users can gain access to luxurious vehicles by paying a monthly subscription price.
Ola has earmarked funding of up to $500 Mn (including debt) for this mission. Self-pressure automobile condo services essentially let users hire a car from the organization for a fixed time frame and drive it themselves.
Inc42 reported that Ola is planning to launch the carrier in seven cities by deploying over 10,000 automobiles, including luxury sedans and SUVs, under its ‘Ola Self-Drive’ Category.
Ola has been walking a small-scale pilot of the self-power carrier in Bengaluru. She is expected to launch the imparting within the next few weeks through Ola Fleet Technologies.
Subscription models for luxury vehicles are common in advanced markets, including the United States. However, the high value of luxury cars in India has made gamers skeptical about the direct-to-client version for this top-rate phase. Interestingly, Ola already offers luxury vehicles to its journey-hailing clients. In October 2016, the Bengaluru-based organization partnered with BMW to expand the category.
Self-Drive: Will It Suit Ola?
In India’s massive mobility market, self-driving continues to be considered an increasing section. Ola is exploring approaches to ensure commercial enterprise sustainability if it ever becomes a main part of the general marketplace. A report by Ken Research shows that the Indian car condo marketplace is expected to touch $12.Five Bn by 2019, developing at a CAGR of 35%.
Ola will now compete with several popular gamers, such as Sequoia Capital India-backed Zoomcar and Y Combinator-sponsored Drivezy.
Regarding finances, Bengaluru-primarily based Drivezy has raised $39.45 Mn thus far. Recently, it was mentioned that generation majors SoftBank and Amazon are in talks to steer a $100 Mn (INR 690 Cr) equity financing round in Drivezy.
Further, Zoomcar India is likewise in talks to raise around $500 Mn (INR three 421 Cr) in a funding round led by automaker Mahindra & Mahindra to join the unicorn club.
Ola: Expanding The Portfolio
Ankit Bhati and Aggarwal have disrupted the mobility market in India and built a company over the last nine years that could compete directly with the global trip-hailing primary Uber.
With a nonstop influx of finances and foremost traders on its board, Ola has been nothing short of an Indian success story on the global stage. In line with its goal of profitability, the agency turned profitable unit economics for the final 12 months in July. Doubling down on its boom, the organization has accelerated globally to Australia, New Zealand, and the United Kingdom.
As a part of the expansion, the employer has persisted in its cognizance of meal delivery with Foodpanda by turning the model into a cloud-kitchen one. Further, it added directly to the marketplace sentiment and is pushing the adoption of electrical automobiles with its Ola Electric unit, which raised $ fifty-six Mn (INR four hundred Cr) from Ola’s early investors, Tiger Global and Matrix India.
The enterprise has additionally earned accolades and raised skepticism about standing its ground against a major investor, SoftBank, as the founders refuse to cede management of their daily operations.
