Ola May Offer Subscription Service For Luxury Car Rentals: Reports

Bhavish Aggarwal-led ride-hailing unicorn Ola is now exploring a subscription-based version for its self-pressure or Ola May Offer Subscription Service For Luxury Car Rentals: Reports 1automobile apartment offering.
A media report citing sources said that Ola is in discussions with luxurious carmakers, such as Audi, Mercedes, and BMW, to convey a version where users can get right of entry to luxurious vehicles via paying a month-to-month subscription price.
Ola has earmarked funding of up to $500 Mn (which include debt) for this mission. Self-pressure automobile condo services essentially let users hire a car from the organization for a hard and fast time frame and drive it themselves.
Inc42 had reported that Ola is planning to launch the carrier in seven cities through deploying over 10,000 automobiles along with luxury sedans and SUVs under its ‘Ola Self-Drive’ Category.
At present, Ola has been walking a small-scale pilot of the self-power carrier in Bengaluru and is expected to launch the imparting within the next few weeks through Ola Fleet Technologies.
Subscription model for luxury vehicles is 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 had partnered with BMW for expanding the category.
Self-Drive: Will It Suit Ola?
In India’s massive mobility market, self-driving continues to be considered to be an increase section, and Ola is exploring approaches to make sure commercial enterprise sustainability if it ever will become a main a part of the general marketplace. A report by using Ken Research shows that the Indian car condo marketplace is expected to the touch $12.Five Bn by way of 2019, developing at a CAGR of 35%.
Ola will now be competing with a number of popular gamers such as Sequoia Capital India-backed Zoomcar and Y Combinator-sponsored Drivezy.
In phrases of 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 $a hundred Mn (INR 690 Cr) fairness financing spherical in Drivezy.
Further, Zoomcar India is likewise in talks to raise around $500 Mn (INR three,421 Cr) in a funding spherical led by way of automaker Mahindra & Mahindra to enroll in the unicorn club.
Ola: Expanding The Portfolio
Ankit Bhati and Aggarwal have disrupted the mobility market in India, and constructed a company over the last nine years that could get up to a direct mission from worldwide trip-hailing primary Uber.
With a non-stop influx of finances and foremost traders sitting on its board, Ola has been nothing brief of an Indian fulfillment tale on the global stage. In line with its goal to profitability, the agency turned profitable unit economics 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 its cognizance on meals delivery with Foodpanda via turning the model into a cloud-kitchen one. Further, it also added directly to the marketplace sentiment and is pushing 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 among others.
The enterprise has additionally earned accolades and raised skepticism for standing its floor in opposition to a major investor— SoftBank, as the founders refuse to cede manage of their daily operations.

Read Previous

Tech, green functions, energy mix to boost luxury automobile income

Read Next

Nirav Modi’s Rolls Royce Ghost, 12 different luxurious vehicles to be auctioned