Indian ride-hailing firm Ola will invest $100 million (roughly Rs. 710 crores) in Vogo, a domestic scooter sharing startup, and add the company's fleet of two-wheelers to the Ola app to broaden the range of vehicles it offers, the companies said in a joint statement on Tuesday.
Vogo, which provides services in the southern Indian cities of Bengaluru and Hyderabad, will use the money to expand its fleet by 100,000 scooters. It did not disclose how many scooters it currently has but said that more than 100,000 users have commuted for over 20 million kilometres using its two-wheelers.
Bhavish Aggarwal, Co-founder & CEO, Ola said "Ola is committed to building a robust mobility ecosystem in India, creating a deep impact on livelihoods and how citizens get around. Our investment in Vogo will help build a smart multi-modal network for first-last mile connectivity in the country. Vogo's automated scooter-sharing platform, backed by Ola's expertise in this space can help transform our cities. Together, we are thrilled to be at the forefront of India's rapidly growing micro-mobility market."
Anand Ayyadurai, Founder and CEO, Vogo said, "Vogo has seen rapid growth in the last 5 months, growing over 10x in scale. We are thrilled to have Ola join us on this journey and help turbocharge our growth by providing us access to strategic and capital efficient supply as well as access to millions of customers on its platform in the time to come. Ola's deep understanding of mobility and their investment to power additional supply are extremely valuable to Vogo. As we enter into our next phase of growth, we look forward to executing our synergistic vision of the future: smart and sustainable mobility for all." He added, "India presents a unique, untapped opportunity for scooter-sharing. With the backing of right partners, innovative solutions and nuanced market understanding, we are well-positioned to capitalise on this opportunity and create value for all."
Written with inputs from Reuters
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