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Covid-19: Ola waives car lease rentals

For drivers, the move is likely to reduce the burden of managing a vehicle, which includes leasing cost and parking, besides offering them flexibility to find other jobs in the meantime. It also helps Ola to protect its assets.

, ET Bureau|
Last Updated: Mar 25, 2020, 07.44 AM IST
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Ola said it plans to offer financial aid for drivers and their spouses for up to Rs 30,000 if they test positive for the Covid-19 virus.
BENGALURU: Ola is waiving lease rentals for drivers who operate vehicles owned by the ride-hailing platform’s subsidiary, Ola Fleet Technologies. Driver partners who are currently in distress due to temporary lockdowns to arrest the spread of the Covid-19 outbreak, will stand to benefit, an Ola spokesperson told ET.

The homegrown cab aggregator has offered more than 30,000 drivers an option to return cars owned by the company under its leasing programme to the nearest designated station, and in exchange is waiving monthly instalments retrospectively from March15.

Over the last two weeks, the company has created infrastructure such as parking stations and security mechanisms across the country to station cars that have been handed over from drivers temporarily, a person familiar with the matter told ET on condition of anonymity.

For drivers, the move is likely to reduce the burden of managing a vehicle, which includes leasing cost and parking, besides offering them flexibility to find other jobs in the meantime. It also helps Ola to protect its assets.

Under its leasing programme, Ola offers drivers an option to take a long-term lease for a car by charging a deposit and a daily rental amount between Rs 700 and Rs 1,150 depending on the city and car model leased. “Ola will automatically deduct your daily rental amount from your total earnings and transfer the rest,” said apost on the company’s website.

At the time of leasing, Ola Fleet Technologies charges Rs 4,000 as non-refundable charge and Rs 21,000-31,000 as refundable security deposit depending on the vehicle type. Ola said it plans to offer financial aid for drivers and their spouses for up to Rs 30,000 if they test positive for the Covid-19 virus.

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