Dec 20: Indian ride-sharing company Ola will invest an amount of $100 million in Vogo, a scooter sharing company. With the investment, Ola intends to expand their area of operations.
Bhavish Aggarwal, co-founder and chief executive officer at Ola has been quoted as saying that will help the company shape a smart multi-modal network for first-last mile connectivity in India.
Ola, with more than 150-million customers, will soon start its services with the Vogo two-wheelers. Vogo is set to expand its fleet by 100,000 scooters with the fund provided by Ola. At present, Vogo has services in Bengaluru and Hyderabad. The number of two-wheelers currently owned by the company was not disclosed. But it claims that around 100,000 customers have covered over 20 million kilometers on Vogo vehicles.
As part of its Series A funding in April 2018, Ola invested in Vogo. Matrix Partners India and Stellaris Venture Partners were also part of this funding. A news source said the latest invest is not part of the Series A funding which took place in April. The latest investment is part of Ola’s strategic equity investment. It will concentrate on doubling the supply.
Anand Ayyadurai, Padmanabhan Balakrishnan and Sanchit Mittal together established Vogo in 2016. Vogo claims to operate India’s first automated pickup-and-drop scooter rental platform. The company remotely tracks and monitors scooters in real-time. This makes the vehicles Internet of Things (IoT) devices. Mysuru, Manipal, Bengaluru, and Hyderabad are the cities in which Vogo is running.
Lately most of the scooter- sharing startups have garnered the attention of the investors. There were reports earlier this month that the Wickedride Adventure Services Pvt. Ltd’s Bounce, which provides dockless scooter and bicycle sharing services, hailing from Bengaluru was in talks to raise a fund of $50 million. The company was in advanced stage of fresh funding round from both new and existing investors.
The reports are that Indian company Ola is trying out many methods to expand its reach in the country as well as in the global market. The US-based Uber is the main rival for Ola. Uber had recently begun its two-wheeler service Uber eats. It is post this that Ola is investing in Vogo.