India’s homegrown cab service company Ola is infusing $100 million into scooter-sharing startup Vogo to boost ‘last-mile connectivity’
- Ola is investing $100 million in scooter-sharing platform
- The investment will go into helping the company buy a fleet of 100,000 scooters.
- Ola is looking to expand its services beyond cabs in India and banking on ‘last-mile connectivity.’
After expanding vigorously in the cab-sharing services in India, Ola is reportedly investing $100 million in Vogo, a platform for renting scooters. The investment will be made in tranches, according to media reports.
Ola had earlier participated in a Series A funding round by Vogo that was aimed at raising $7 million. While Vogo has been able to fetch a considerable investment from Ola, it will reportedly continue to function as an independent start-up, reported LiveMint.
The company is planning to build a ‘multi-modal network for first-last mile connectivity’ in the country, Bhavish Bhavish Aggarwal, CEO and co-founder of Ola told TOI.
Ola has been working aggressively to expand its reach in urban transportation. It earlier acquired a transportation information provider, Ridlr.
Both Ola and Uber have been in stiff competition in the cab-rental services for a while now. While Uber also offers a similar service under the name ‘Uber Moto., However, the service does not allow customers to drive the bike themselves but only accompany an Uber driver. Vogo, which has services in Hyderabad and Bangalore, allows its customers to pick up and rent from certain areas.
The problem of congestion at India’s urban cities only seems to be getting worse. Services like scooter-sharing may be a solution for urban Indians, the company hopes. Uber users were able to save nearly 40% of their time when they traveled through ‘Uber Moto,’ Quartz reported.
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