German carmaker BMW and Indian-ride sharing service Ola has signed an MoU (Memorandum of Understanding) that will redefine the mobility market in the country.
BMW has become the ‘Lux Cateogry Partner’ for India’s most used mobile technology app for transportation.
The tie-up is aimed to allow Ola cab operators to avail cheaper credit to buy BMW models, receive after-sales support and promised buyback, said Ola in a statement.
Drivers will get trained by BMW-certified instructors about auto safety systems and technology, said the statement.
The agreement has been approved following Ola’s partnership that was announced in the last month with Mahindra & Mahindra, India’s top SUV maker.
BMW now has joined the ranks of other global automakers who have signed tie-ups with ride-sharing companies to guard against a shift in consumer choice away from vehicle ownership including the likes of Toyota Motor Corp, Volkswagen, and General Motors.
However, the deal has come through when Ola is facing tough competition from the US-based cab hauling service provider Uber.
Uber has its own Luxury sedan section already under Uber Black that lets users pick premium sedans for their trip at a premium price.
The Ola app is getting a lot more tailored and personalised, keeping Indian users’ needs in mind.
Ola will induct the BMW cars into its fleet across Delhi, Mumbai, and Bengaluru, and the service will later be extended to more locations.
Ola Lux will be available for booking at a minimum fare of INR 250 and INR 20-22 per/km. The category will allow customers to book the cars on an hourly basis by its Rentals feature.
Features like driver details being displayed upfront, Auto-Connect Wi-Fi, SOS buttons, live tracking and seamless payment using Ola Money will continue to offer a comfortable experience to users.