Ola Invests $500 Million To Launch Self-Drive Services; 10,000 Vehicles Will Be Deployed Pan-India
This way, Ola will become India's largest self-driving car service.
India’s biggest cab-hailing app: Ola has decided to venture into self-driving service.
As per reports coming in, Ola will deploy nearly 10,000 vehicles across major Indian cities to kick start the service.
Self-driving niche is growing at an astonishing pace in India, and the major players include Myles, Zoomcar (backed by Sequoia Capital), and Drivezy (backed by Y Combinator)
How will Uber respond now?
Ola’s Self-Driving Service About To Launch
Ola has decided to invest $500 million or Rs 3400 crore for launching their first ever self-driving car service. 10,000 vehicles, including SUVs, luxury sedans, and hatchbacks will be deployed across major Indian cities for supporting the service.
As per reports, the self-driving service will be subscription based, and discounts will be provided to those customers who opt for the longest tenure plans.
An Ola spokesperson has confirmed this development, as he said, “Ola is committed to building Mobility as a Service for India’s young and discerning consumers. Basis market feedback, we are piloting our Ola Self-Drive offering in various formats like rentals, subscription and corporate leasing in select cities in the coming weeks. This space is currently underserved and there exists a tremendous opportunity to build a superior experience through an integrated mobility platform like Ola..”
Additionally, they is also planning to strategically collaborate with large corporates, and offer them self-driving services for their employees at a discounted rate.
Ola’s Self-Driving Service: From Where The Money Will Come?
Most probably, Ola will attempt to raise debt via Ola Fleet Technologies, in order to fuel their self-driving service aspirations.
Besides, right now, Ola has sufficient funds to provide the required money.
Last week, Ola raised $300 million from Hyundai Motor Group, which valued the company at $6 billion. This investment was aimed at creating a strategic partnership between Hyundai, Ola and Kia Motors to develop cars for them.
And in the month of February, Ola received Rs 650 crore funding from Flipkart co-founder Sachin Bansal along with Steadview Capital, Raymond S Cahnman from Transmarket Group, philanthropists Tina and Steven Price, J3T Ventures and Lyon Assets
Ola has raised $3.67 billion as of now, and 13 lakh drivers are using Ola right now across 125 cities in India, UK, Australia, and New Zealand.
We will keep you updated, as more details come in.