Mahindra has partnered with fleet operator Ola, signing a MoU, to introduce 40,000 new drivers across the whole of India within 2018. Through vehicle financing and sales, Mahindra will be aiming to make Rs. 2,600 crore from this partnership.

In an effort to encourage micro-entrepreneurship in India, Mahindra will be financing and selling to existing Ola drivers, who will become eligible for a Mahindra-Ola financing and sales package. Besides the financing and sales packages, Mahindra will also be looking at providing other solutions through the collaboration.

The partnership will provide driver-owners with options of zero down payment and easy and attractive finance options. It will also make available subsidized insurance premiums, best non-banking interest rates and attractive maintenance packages. These will be exclusively offered by Mahindra to the Ola platform and its driver-owners. It will also cover accident insurance and scholarships for the children of the drivers.

The Mahindra also aims both at the current and future markets, while targeting the young population as well that takes to micro-entrepreneurship in new avenues as Ola. Not stopping at providing services to these sects, Mahindra will also cater to their family needs including the education of their children.

However, even before the Mahindra, all of foreign carmakers in India have already struck such partnerships. Toyota collaborates with Uber to offer their cars for the fleet services. Similarly, Ford has invested $15 million in Zoomcar that fleets the Figo and the EgoSport. While Volkswagen has partnered with Gett with Rs. 2,000 crore investments, luxury carmaker BMW has also invested in the US-based carpooling service Scoop Technologies.