Ola is going to invest over USD 500 million to launch a ‘self-drive’ service aimed at broadening its portfolio of transportation solutions, two sources told Economic Times.
The ride-hailing platform is going to deploy nearly 10,000 vehicles, including luxury sedans and SUVs, in major cities soon. People aware of the company’s plans told ET that Ola was likely to raise debt via Ola Fleet Technologies to seed the new business.
An Ola representative told ET, “Basis market feedback, we will pilot (the service) in various formats such as rentals, subscription and corporate leasing in select cities in the coming weeks.”
In the self-drive rental category, Ola would be competing with the likes of Myles, Sequoia Capital-backed Zoomcar and Y Combinator-backed Drivezy.
The Bengaluru-based company was valued at roughly USD 6 billion during a funding round in February. Earlier this month, Ola said it had raised USD 300 million from Hyundai Motor and Kia Motors to build India-specific mobility solutions.