After reports of Ola looking to raise $500 million to launch a self-drive service in India, a PTI report now states that Ola is in talks with luxury brands like Audi and Mercedes to be offered to customers for self-drive. The company is said to be in discussions with these companies so that their vehicles could be added to their fleets in different cities. Though there is no complete information yet of how this will be operated and what the charges will be, it is being reported that a subscription fee paid by the customer could enable him/her drive around in a BMW or Mercedes or Audi provided by Ola.
The service has already been started on a pilot basis in the city of Bengaluru. It may be expanded to a full-scale service in this city and taken to other cities as well. Ola already has a Lux option within its app to hire luxury vehicles under its routine service. The provision to drive around in these luxury segment cars is very much available in many developed countries. For a country like India, it may come with its complications, though a thin market does exist at the top for self-driven cars in the luxury segment.
Ride-share companies tying up with auto makers is not new. Ola itself has already roped in Hyundai and Kia to make an investment of $300 million in the company. And speaking of investments, Sachin Bansal, co-founder of Flipkart recently invested Rs 650 crore out of the funds he received from selling his stakes to Walmart.
Ola Electric Mobility is another side of the business the company is seriously working on and an amount of Rs 400 crore has come in from Tiger Global of the US and Matrix India besides some other investors.