Ola launches cashless rides on auto rickshaws

Service to leverage Ola Wallet to make transaction through a 4-digit authentication code received via SMS

Your next ride via the Ola app in an auto rickshaw could be cashless. In its attempts to leverage technology and attract more users, Bengaluru-based Ola (formerly Ola Cabs) has launched cashless rides on auto rickshaws.

The Bhavish Aggarwal-led firm has launched Ola Money, a ‘wallet’, through which one can pay for the rides. In the case of Ola, unlike Uber, the wallet is its own and not a third party tie-up such as Paytm.  

The service will leverage Ola Wallet, which can be topped up through a credit card, debit card or online banking. At the end of a trip, if the commuter conveys to the driver that she or he wishes to pay from his Ola Wallet, the commuter will receive a four-digit authentication code via SMS, which can then be shared with the auto-driver and the transaction would be completed. Through this cashless service, a user can make partial or complete payment for the trip.

“Ola Money doesn't get automatically debited, and the customer has the choice to pay for the ride in cash,” the company said in a note to users on Tuesday. “By sharing the authentication code with the driver, you are agreeing to pay the respective amount to the driver in Ola Money. If you don’t receive the SMS due to a network issue, we request you to pay the driver in cash. Your Ola Money will not be debited.” The convenience charge of Rs 10, charged by Ola on all auto rickshaw bookings, will remain in this transaction as well.  

Allowing auto rickshaw booking through mobile apps has been a top priority for companies in the taxi aggregation space.

TaxiForSure, fiercely competing with Ola before the latter acquired it a few weeks ago, had also entered the auto segment recently.

Ola does not provide billing or invoicing services for auto bookings as of now, unlike cabs. The service also requires a user to indicate the drop location and get a ride only if the driver agrees to the trip.

BUILDING ITS PRESENCE

• It is offering a cashback of Rs 100 on the first Ola auto ride, according to its website
  

 

Ola does not allow pre-reservation of autos and the booking needs to be done only via the 'Ride Now' option
 

The service is available only on the firm's app