Uber's India Rival, Ola Pours $100 Million Into Vogo’s Scooter Rental Services

Jyotis - Dec 23, 2018

As such, the issues regarding the last mile connectivity in the cities of India will be handled via this concept.

After Ola poured money into its Series A fund to collaborate with Vogo which provides the first scooter rental service in India, the company has now invested $100 million for the second fund with this startup. According to the latest news, along with the financial investment, Ola will help Vogo to manufacture 1,00,000 scooters to expand its supply. That means the two companies have set up promising strategic cooperation.

As such, Vogo will gain two primary benefits from this partnership. They are: reducing the expense it would pay and increasing its chain of supply. Besides, the app developed by Ola will soon include the scooter rental services provided by Vogo, and the number of the services’ users is expected to increase significantly.

The Ola’s co-founder and CEO, Bhavish Aggarwal, made a comment on the company’s cooperation with Vogo that its investment would establish a smart network with multi modes to connect every mile in the territories of India.

At present, Vogo has shown up in two large cities in India, including Hyderabad and Bengaluru. The company reveals that thanks to its platform, it can now offer its services to cover more than 20 million kilometers. To use the scooter’s key, users just need to look for an OTP on an IoT device which is connected with Vogo scooters. As such, the issues regarding the last mile connectivity in the cities of India will be handled via this concept.

Anand Ayyadurai (Vogo) and Bhabish Aggarwal (Ola)

As Vogo’s founder and CEO, Anand Ayyadurai showed his strong belief that the country has held an exclusive chance concerning sharing scooters in its hand.

According to a spokesperson from Ola, the strategic partnership between these two companies will make Ola Bike services more perfect when considering the last mile connectivity; however, they will keep operating discretely. The reason behind it is that there is a basic difference between renting and booking the two-wheelers.

What Ola will receive from the partnership is another problem that is attracting a lot of attention. However, its spokesperson didn’t offer any revelation about it.