Ride-hailing apps like Ola and Zoomcar may reduce the size of their fleet amid demand stagnation due to rising cases of COVID-19 across the country.
These shared mobility companies are looking to find prospective buyers for their vehicles and have approached pre-owned car dealers such as Mahindra First Choice (MFC) and Maruti True Value, The Economic Times reported.
Ola and Zoomcar are planning to begin offloading vehicles in significant numbers from the end of July (2020) as a large portion of their fleet has been lying idle since the beginning of the coronavirus-induced lockdown.
Where Ola owns nearly 30,000 cars it leases out to drivers on its mobility platform, Zoomcar has over 10,000 cars that customers rent on a self-drive basis.
"Even if Ola has offered financial relief to drivers, at least 50% of them have gone back, leading to a lot of cabs lying idle for months," a source told the news daily.
Mahindra First Choice is assessing about 60 vehicles from Zoomcar. Whilst Ola is evaluating market conditions to figure out the best time to downsize its fleet.
Meanwhile, the news report could not ascertain the total number of cars these companies are planning to sell in the used cars market as they are still being assessed.
"From time-to-time, we assess market conditions, but we have no official plans (to sell cars) right now," Greg Moran, founder and CEO of Zoomcar told the news daily without giving out the details.
There is also no clarity on whether Uber is also planning to liquidate its fleet as the cab aggregator has a fairly small leasing business.