Tata Motors planning to acquire stake in Ola, Uber

Ratan Tata has been investing into a slew of innovative new-age technologies and startups in the country recently. Now, according to the latest report from ETtech, his company, Tata Motors is planning to invest in transportation sector particularly aiming at shared mobility providers like Ola and Uber.

The company is also gearing up to aggressively fund and become a part of a host of the new-age startup trying to disrupt the transportation sector.

With a shift towards shared mobility segment, the millennial generation is changing the way in which automobile industry operates.

“We are very carefully studying possibilities (of picking up a stake) and we are certainly open for all kind of different partnerships,” Guenter Butschek, the managing director of Tata Motors, told ET in an interview.

Adding that the company is aware of the rapidly changing market scenario, but the only lingering question that remains is, “Should we wait till they actually do our business or we actually invite them with their competencies to jointly improve our business!? I would rather favor getting them on board to jointly develop our business than to actually see them getting into our business.”

Notably, Tata Motors already has an agreement 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.

Similarly, Ola also has a 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.