Ola introduces credit service in India for frequent users, corporates

Bengaluru-based cab aggregator, Ola, yesterday announced the launch of its credit service to allow frequent users and corporate clients to ride now and pay later-essentially an IOU, which offers seven days of credit.

According to commentators, Ola Credit would likely emerge as a key differentiator for the company from rivals like Uber and radio-taxi operators. 

"Credit is an important step towards our goal of ensuring mobility for a billion Indians," said Raghuvesh Sarup, chief marketing officer, Ola.

"Mobility is an everyday use case and our commitment to making it seamless includes building a friction-less payment experience." 

Users can repay Ola Credit through net banking, debit or credit cards or through the Ola Money e-wallet, which is integrated into the app. The company might also extend credit to select users on the basis of the customer's transaction history. 

The startup counts companies like L&T, Siemens and IBM among its clients. 

The company claimed it was the first in the industry to offer credit, adding that the service was being launched at a time when cash conservation had become important for many citizens. 

Sarup said, "Ola Credit is a global first from Ola to keep India moving towards a cashless economy. Ola Credit provides hassle-free mobility to citizens who can now pay later for their rides when cash conservation is important for many citizens."