Mobility startup Ola enters used cars retailing segment
Ola, the Bengaluru-based mobility giant, has now entered the used cars buy and sell segment.
As gears up for the launch of electric vehicles under , the company has piloted the launch of a new segment — Ola Cars, marking its entry into the used car retailing space.
While the company is officially yet to comment on this development, the app already has multiple options for buying different cars. It has also has tied up with financial partners for car loans and financing options.
The company is also providing maintenance and servicing options for its customers.
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Prior to the pandemic in October 2019, Ola launched its self-drive platform called Ola Drive. The startup had then offered the service for a period of two-to-three months. People can avail the facility with a starting security deposit of Rs 2,000.
While the pandemic had impacted Ola's mobility business to an extent, however, sources within the company added that it is now seeing a recovery of close to 70 percent.
The company had also announced the expansion of its employee stock options (ESOP) pool to Rs 3,000 crore. Ola stated it is also allocating an additional Rs 400 crore worth of stocks to its employees in the run-up to its IPO.
Earlier this month Ola Electric and Bank of Baroda signed a 10-year $100 million debt towards the funding and financial closure of Phase I of the Ola Futurefactory — Ola's global manufacturing hub for its electric two-wheelers, according to a press statement from the company. This is one of the largest long-term debt financing agreements in the Indian electric vehicle industry.
According to the statement, the Futurefactory is at near completion, with the production trials of the much-awaited Ola Scooter expected to commence soon. The soon-to-be-launched Ola Scooter will be manufactured at the Ola Futurefactory, which will also serve as Ola's global EV hub for its range of scooters and other two-wheelers.
Edited by Kanishk Singh
