The Alliance between Car Companies and Ride Hailing Apps
Automobile companies have been facing tough competition amongst themselves. Firstly, increasing traffic congestion in the cities is making the millennials shy away from buying cars. Secondly, the number of automobile companies, as well as the models that they produce, are increasing rapidly every day.
Hence, registering any kind of growth is difficult in the market nowadays. This is the reason that car companies are now increasingly partnering with ride-hailing services.
In this article, we will have a closer look at the economics of the deals taking place between ride-hailing services and automobile companies.
Which Car Companies Are Teaming Up With Apps?
Pretty much every car company in India is trying to court cab aggregation services. These alliances are no longer happening between companies which sell lower end car models and cab services. For instance, BMW India has signed an agreement with Ola. BMW is planning to provide cheaper financing and cheaper support to vehicles which are being operated by Ola. Similarly, Ola has also signed a contract with Mahindra and Mahindra which is one of the largest car manufacturing companies in India.
Olas rival Uber is not being left behind either. It has signed a contract with Maruti Suzuki which is by far the largest player in the Indian automobile market. Not only will Maruti provide cheaper financing and better services like its counterparts, but it also proposed to set up a driving school where drivers who want to work for Uber can learn to drive.

How Everyone Benefits From This Arrangement?
Such arrangements are becoming common in the Indian market because they work out for everyone involved. The benefits to all parties have been listed below:

Authorship/Referencing - About the Author(s)
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