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Context is everything.
Detailed stories on technology startups, business and economic current affairs.
Detailed stories on technology startups, business and economic current affairs.
False promises, allegations of fraud and over Rs 1,000 crore in cumulative losses bring Ola’s car leasing business to a grinding halt.
Editor's note: A cab driver from Telangana, S had always wanted to own a vehicle, but never had enough money or the requisite supporting documents to get a vehicle loan. So when Ola Fleet Technologies Pvt. Ltd—a wholly owned subsidiary of ANI Technologies, better known as Ola Cabs—launched its new vehicle leasing scheme in 2017, he jumped at it. He paid Rs 26,000 upfront in November that year for leasing a sedan that was barely a few months old, after the company assured him that he could own the car within four years. The company promised S a steady daily business (around Rs 3,000) through regular rides and a reduced commission (5% against the usual 20% and above). He only had to pay a little over Rs 1,000 in daily instalments, manage fuel expenses—also around Rs 1,000 a day—and spend on day-to-day minor repairs. The company claimed it would take care of insurance and monthly maintenance for four years. The incentives were good and S figured he could own the car well within four years. People he knew had been able to …
A string of deals and bets signal the ride-hailing company’s ambition to dominate delivery, but questions and challenges remain.
Shared rides seemed tailor-made for India’s congested cities. Yet, economics, trust and regulation kept the idea from scaling.
The founders of the Turkish company have filed a suit against the Abu Dhabi sovereign fund, proptech Stake has raised new millions and there is a new financial giant in town.
