Ratan Tata who has been an active investor in innovative startups throughout the country, and now his automobile company Tata Motors is looking to enter the market with investments in transport sector. According to reports from ET, Tata Motors is currently discussing about acquiring a stake in shared mobility providers Ola and Uber. The company is also planning to aggressively fund and become a part of new-age startup trying to disrupt the transportation sector.
Guenter Butschek, the managing director of Tata Motors says in a statement:
“We are very carefully studying possibilities and we are certainly open for all kind of different partnerships.Should we wait till they actually do our business or we actually invite them with their competences to jointly improve our business!? I would rather favour getting them on board to jointly develop our business than to actually see them getting into our business.”
Tata Motors already has a partnership deal with Uber to provide drivers with comprehensive vehicle purchase and ownership solutions. It has been launched with the aim of providing 20,000 drivers with opportunities to start their own business on the platform. This deal, made tata see more than double sales in the past couple of months. Tata Group’s Opportunities Fund also invested somewhere between USD 75 million to USD 100 million in the ride-hailing giant. On the other hand Ola, has also signed car leasing agreement with Mahindra Group to offer drivers an integrated package that comes with financing, insurance and services. It is looking to create favorable opportunities for over 40,000 driver partners over the next couple of years.