Having received a lot of attention and funds from venture investors, the taxi service apps are now passing the baton to scooter sharing startups, and VOGO – the scooter sharing project received an overwhelming response, and bagged itself huge funding promises from Ola.
VOGO, Bounce, Lime, Motivate and other such scooter sharing startups are catching a lot of attraction nowadays and the investors are keen to invest their money in such new ventures. Uber recently funded for Lime to add more scooters to their app while the bicycle sharing Chinese companies like Ofo and Mobike have also received massive response in a short span of two years. Up for the bid was VOGO scooter sharing service, attracting investors like Kalaari Capital who offered a $10 million investment, while Ola has promised to finance 1,00,000 scooters worth $100 million as an investment for growth.
After funding a $100 million, Ola will be the owner of 30% of its shares and hence will begin its partnership with the scooter renting venture. This investment is a considered to be a win-win for both, as Ola had been seeking to expand its wings in the market of ride renting since quite some time, while VOGO is a potent startup in need of funds. VOGO is a customer friendly service that allows users to navigate, locate, unlock and use the scooters from a particular location and leave them off at a different place, with no demands of dropping the scooter at any particular particular place.
Currently, VOGO mainly aims at targeting metro stations, colleges, parks etc across the cities of Hyderabad and Bengaluru. But as Anand Ayyadurai, founder and CEO the scooter company said, that after a rapid growth of 10x times in the last five months, joining hands with Ola join will help turbocharge the growth and provide them the access to strategic and capital efficient supply. In the next phase of growth, both the companies will work on executing their “synergistic vision of the future: smart and sustainable mobility for all”.