ola cabs bmw tie up uber india urban transport mobility service
Bhavish Aggarwal, CEO and co-founder of Ola, an app-based cab service provider, poses in front of an Ola cab in Mumbai March 3, 2015.Reuters file

Cab-hailing service Ola and German luxury car maker BMW announced a tie-up to provide commuting services to passengers in the higher-end segment. In the past few months, many car makers have joined hands with cab aggregators to benefit from the growing patronage to the service in Indian metros.

The agreement will allow Ola fleet operators buy BMW cars with 100 percent financing for up to four years by BMW Financial Services India, apart from assured buyback by the car maker. 

"BMW is now the 'Lux Category Partner' for Ola – India's most popular mobile technology app for transportation," Ola said in a statement on Monday.

Both the companies said that the agreement will increase their presence in the uber-rich segment.

"Through this partnership, Ola will strengthen its presence in the luxury mobility segment, an area that we believe has tremendous potential," Pranay Jivrajka, CEO, Ola said.

BMW also hailed the tie-up with Ola, Uber's direct competitor in India.

"The way people are moving is changing and this is also true for the premium clientele. We are confident that this association will be a game changer in the premium on-demand mobility segment in India," Frank Schloeder, President (act.), BMW Group India said.

Recently, Toyota Kirloskar Motor announced a similar tie-up with Uber.