Tata Motors to buy stakes in Uber and Ola app-based cab service providers along with several other companies that work in mobility sector
Tata Motors is mulling the possibility to buy stake in both Uber and Ola, as the company believes buying behaviour of new generation customers are going to change. Both the app based cab service providers Uber and Ola have become very popular across India, and they are replacing the conventional taxi service rapidly.
Apart from Uber and Ola, Tata Motors is also planning to invest in several other companies as well, which works in mobility and transportation sector. Tata Motors believes, new generation customers are opting toward sharing cars rather than owning, and companies like Uber and Ola are bringing such opportunities to them. In such a scenario, the shared mobility provider like Uber and Ola are going to become major players in near future, and Tata Motors wants to garb that opportunity to grow.
In an Interview Mr. Guenter Butschek, the managing Director of Tata Motors has said that the company is carefully studying possibilities to buy stake in shared mobility providers. He also cleared that, the company is open toward all kind of different partnerships as well.
Several other global automakers companies like Ford Motor, general Motors, Toyota has already showed interest and struck partnership with shared mobility service providers. Now Tata Motors is also about to walk the same path. Tata Motors already has a partnership with Uber to supply 20,000 cars, and it has seen growth in its fleet segment sales after tie-up with Uber.
In India Mahindra & Mahindra, Maruti Suzuki and Toyota has also shown interest in working with Uber and Ola. Few days back, Toyota announced end to end financing solution for new Uber drivers. In the financing solution Toyota is about to provide 90% finance for the new drivers covering almost all the expenses.
Source: ET Auto