Bengaluru: Ride hailing company Ola Wednesday introduced Ola Credit, under which customers can ride now and pay within seven days. The option, however, has been made available only to select customers based on their ride history, and has to be chosen at the time of booking.
ANI Technologies Pvt. Ltd which runs Ola, however, declined to share exactly how many users will benefit from Ola Credit.
The service will be available across all categories available through Ola, including auto, outstation and rental car segments.
Ola Credit was prompted by the withdrawal of Rs500 and Rs1,000 notes which has created a cash shortage, the company said. “This is not a product on which we are making money. This is a facility that has been extended to Indian citizens at a time when they need to conserve cash,” said Raghuvesh Sarup, chief marketing officer and category head, Ola.
There will be no limit on the number of rides a customer can take each week using Ola Credit. The amount due each week can be paid through net banking, debit or credit cards, or through Ola’s own wallet, Ola Money.
“Financial stipulations indicate that if there is a default on the loan, we either extend the credit period or send reminders to the customers,” said Sarup.
Ola’s corporate customers will also benefit from Ola Credit.
Ola drivers will not be impacted based on how a customer chooses to pay, and will continue to receive their daily settlements as usual, Sarup said.
Like other e-wallets, a day after the government announced demonetization, Ola Money too saw a surge in transactions and recharges, the firm said.
Apart from booking cabs on Ola, Ola Money can be used for recharges, sending money to others with the wallet and at about 500 offline and online merchants including merchants like Pizza Hut, BookMyShow, IRCTC, Domino’s and Cleartrip.
Ola has so far raised about $1.2 billion from Tiger Global Management, Matrix Partners, SoftBank Group, Didi Chuxing and several other investors.
It is locked in a battle for market share with Uber in India, which at a $68 billion valuation, is the world’s most valuable start-up.