Mobility platform Ola Fleet Technologies has partnered with Dbest Cars India, a used car trading startup, to dispose-off its used commercial fleet vehicles from its existing fleet of cars in a deal worth over Rs 125 crore.
As the largest radio taxi company in India, Ola said on Tuesday, the 24th of January, 2023, that it is undertaking the process to dispose of over 5,000 used commercial cars through the services of Dbest Cars India.
Why?
All rental or taxi cab services companies are required to dispose of their existing fleet in a gradual phase so as to replace it with the newest & latest fleet. The outgoing fleet of used vehicles is replaced with a fleet of new vehicles.
Also, an increasing motorization rate, lower vehicle replacement cycle, and increasing penetration of used car financing are expected to grow the Indian used car market between FY21 and FY26 to about 8 million units.
Dbest Cars aims to organize the used car business by building a new platform where customers can buy and access pre-owned commercial vehicles directly while eliminating all regulatory risks. It believes that this partnership with Ola Fleet Technologies will provide substantial growth to its business.
Official Statements
Commenting on the partnership, Dinesh Singh, MD & CEO at Dbest Cars India said, “We are fortunate to be able to get the opportunity to work with India’s largest radio taxi company and feel proud to have been chosen by Ola to help them dispose-off their thousands of used commercial vehicles. This association will provide an accelerator for the growth of our start-up.”
Commenting on the same, Gulshan Rao, Director at Ola (Risks & Brand Protection) said, “Sale of Used commercial cars is totally different from the sale of normal used cars (white plate). For the sale & purchase of used commercial cars, there are a lot of obligations that need to be carefully fulfilled and as a responsible company, we need to choose the right partner for this so as to avoid any future disputes.”
He further added, “We are in process of disposing off our existing fleet which is now obsolete, and for the same, we have selected Dbest Cars to be our partner as they are an established company and expert in the used commercial vehicles industry and they have a good reputation of efficiently working with other big corporates like Avis, Orix, Uber, etc.”