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Last Updated : Feb 13, 2020 06:43 PM IST | Source: Moneycontrol.com

Automakers struggle to hail a cab as Ola, Uber shy away: Report

The report noted that while vehicle sales through this arrangement numbered around 100,000 in 2016, the same came down to around 20,000 vehicles in 2019.

Representative Image.
Representative Image.

Vehicle sales of automakers from partnerships with cab aggregators like Ola and Uber have dwindled due to the sluggish growth in the ride-hailing business, as per a report by The Economic Times.

The report noted that automakers form tie-ups with cab aggregators to provide vehicles to new drivers getting onto these platforms.

The report noted that while vehicle sales through this arrangement numbered around 100,000 in 2016, the same came down to around 20,000 vehicles in 2019. There was also 35 percent fall in vehicle sales through this arrangement in 2019 as compared to that in 2018.

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It added that while in 2016, such sales made up 33 percent of their total fleet sales, the number dropped to a mere 11 percent in 2019.

The report quoting industry executives saying the reasons behind the same could range from rationalisation of incentives by ride-hailing platforms, the limited reach of such services to bigger cities, and drivers' poor credit profile.

The timing of such a decline in sales comes at a bad time for automakers who have already been experiencing a drop in overall sales of passenger vehicles.

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First Published on Feb 13, 2020 05:25 pm
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