The company seeks to enter the market as Chairman Anand Mahindra believes that personal commuting days could be limited due to the crowded streets.
Indian automobile manufacturer Mahindra & Mahindra is looking to enter the cab-hailing and aggregation business with ride-sharing apps, through electric taxis which will offer affordable fares.
The company seeks to enter the market as Chairman Anand Mahindra believes that personal commuting days could be limited due to the crowded streets. He believes that, "There will be a dramatic shift in the customer segment," and hopes for the roads to be freer.
Last year, M&M had supplied over 40,000 cars to Ola in two years, earning the group a business of Rs 2,600 crore.
The group prefers electric cars to oil-run cars for aggregators. According to the chairman, petrol and diesel demand is "tapering off."
The Chairman told the Times of India that unlike Ola and Uber which ho spend enormous amounts in maintaining a strong consumer base, the firm 'will look for niche solutions' to attract consumers. He was quoted as saying that Mahindra & Mahindra could offer their Thar SUVs in Goa, where the demand for SUVs is high, in their app. The firm aims not to 'burn cash' and will help the existing companies to move forward.
Cab aggregators are those who own apps which let customers connect with those who are willing to provide them with the cab services. At present, the cab-hailing and aggregation market is dominated by Ola and Uber.
Welcoming partnerships and other investments, Mahindra believes that their entry into the market with electric cars would be one of the 'solutions and not just products' in the industry.
Other auto companies are also eyeing the market. For instance, Ford India owns a stake in Zoomcar - a digital platform where you can rent cars for a certain period.Hero MotoCorp, a two-wheeler manufacturer, has also expressed its consideration towards investing in this market. Recently, Economic Times reported that Uber and Hero MotoCorp are in talks for an alliance. Uber offers UberMOTO - a bike taxi ride service - in Gurugram, Faridabad, Hyderabad, Ahmedabad and Jaipur.