Ola partners with Nissan India in taxi leasing scheme
Tue 3 Nov 2015
Mobile taxi-app service Ola has today announced a purchase agreement with Nissan Motor India to expand its vehicle fleet in an attempt to rival U.S.-based Uber for a larger domestic market share.
The Indian company hopes to partner with further carmakers to help it reach its target of adding 100,000 vehicles to the Ola fleet by the end of 2016. The firm’s proposed car leasing programme, under the Ola Fleet Technology unit, will offer drivers a vehicle against a deposit and a monthly rental rate, which also covers vehicle maintenance costs. After a three-year period, the driver will have the option to own the car. The programme has been piloted with 1,000 cars in Bangalore, Chennai, Hyderabad and three other major Indian cities, for which it sourced the vehicles from Maruti Suzuki.
Ola plans to track usage and driving activity data through the leasing scheme to help develop vehicles tailored to the cab-sharing sector based on the analytics it generates.
Supported by Japanese Softbank Group, Ola will purchase the cars from Nissan subsidiary Datsun. The company did not reveal any financial details nor information on the number of vehicles involved in the deal.
“We look forward to more such partnerships in the coming months, to creating mobility options customised for the Indian market,” said Rahul Maroli, Ola vice president of Strategic Supply Initiatives.
Nissan Motor India managing director Arun Malhotra commented: “Nissan has a strong presence in the fleet segment globally and in India, we see a great potential. Our flagship models from both Nissan and Datsun brands are well equipped to cater to the fleet segment offering the much sought after features like space and fuel efficiency.”
Nissan has faced an uphill challenge with sales in India this year, seeing a 24% fall in profit in the country – selling just 20,000 cars between April and September.