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India’s Ola Will Lease Cars to Boost Taxi-Hailing App in Uber Challenge

  • Sets up subsidiary that will spend $754 million to lease cars
  • Cars leased will operate exclusively for Ola customers

Ola, the operator of an Indian taxi-hailing app, will lease cars to boost the number of vehicles in its network to stave off competition from Uber Technologies Inc.

Ola, owned by ANI Technologies Ltd., will set up a wholly-owned unit that will spend 50 billion rupees ($754 million) to lease cars and expects to add more than 100,000 driver partners by the end of next year, it said. The unit, into which Ola will initially invest 5 billion rupees, will lease the cars and give drivers the option to own them after three years, it said.