Ola has invested $100 mln in the scooter-sharing start-up Vogo

Indian ride-hailing app Ola, which is competing with Uber for supremacy in the fast-growing Indian shared transport market, has invested $100 million in the scooter-sharing start-up Vogo. Vogo, which launched its service eight months ago, has a fleet of 2,000 motor scooters in parts of Bangalore and Hyderabad. The company will use the funds from Ola to acquire 100,000 new scooters that will be rolled out in the two cities over the next year. Vogo allows commuters to pick up and drop off its moped-style motor scooters from about 200 service points in the neighbourhoods where it operates… Vogo has been backed by Pawan Munjal, the chairman and chief executive of HeroMotor Corp, India’s largest two-wheeler manufacturer, and Matrix Partners India, an early stage venture capital fund. Ola also participated in an earlier funding round in August of this year. But Ola’s latest investment will make the Indian ride-hailing company, which is also backed by Japan’s SoftBank, one of Vogo’s largest shareholders… Ola is planning for its customers to be able to book Vogo’s motor scooters directly from the Ola app… Vogo is betting that in India’s congested cities, with their ever-worsening traffic jams, motor scooters will be one of the fastest, most affordable forms of transport.

Amy Kazmin