Ola to expand its CNG fleet, will invest Rs 200 cr over next 6 months
Ola, which already has more than 20,000 CNG cars on its platform in Delhi-NCR, will add 5,000 new CNG vehicles by next week.business Updated: Mar 17, 2016 12:23 IST
With Diesel vehicles set to be banned from being used as taxies from April 1, app based taxi service provider, Ola, will invest Rs 200 crore over the next six months as it expands the fleet of CNG cars on its platform with over 5,000 cabs in the Delhi-NCR region.
Ola’s competitor Uber recently said that it has 8,000 CNG cars on its platform. Now Ola, which already has more than 20,000 CNG cars on its platform in Delhi-NCR, will add 5,000 new CNG vehicles by next week.
Both companies have been asked to switch completely on CNG by March end.
“Ola is bringing an opportunity for driver partners across Delhi NCR to benefit from heavy discounts on new CNG vehicles, optimum and on-spot valuation and exchange and lot more. Through this mega event, we intend adding 5000 new CNG vehicles on our platform in the region, which would in turn contribute to a clean and green Delhi. Ola has rolled out to a number of programs that help driver partners take the first step towards entrepreneurship by bringing the best deals for them through backward integration with car manufacturers, banking and financial institutions and other ecosystem partners,” said Pranay Jivrajka, COO at Ola.
Drivers across Delhi NCR stand to benefit from savings of up to Rs 1.5 lakh on exchanging their old diesel vehicles for a new CNG one. Ola has partnered with dealers of leading car manufacturers, banking and financial institutions and vehicle valuation and exchange platforms.
The company has partnered with dealers of car manufacturers including Maruti, Tata, Hyundai, Chevrolet, Nissan, among others.
It has also on-boarded banking and financial institutions like State Bank of India, IDBI and Shri Ram Finance.
In the past few months, Ola has been aggressively expanding the number of driver partners and CNG cars in Delhi-NCR, following the crackdown on diesel taxis plying in the Capital after court orders.
In November last year, Ola had raised $ 500 million or around Rs 3,299 crore in series F funding from Baillie Gifford, Tiger Global, SoftBank Group and others.
Ola has raised over $ 1.3 billion or about Rs 8,600 crore in external funding.
With over 3,50,000 vehicles registered on its platform, Ola offers services across 102 cities in India.
In August, after a crackdown by the Delhi government, both the companies had started switching to CNG. However, the Delhi government is yet to give a license to them as the matter is pending in the court.
(With inputs from PTI)