Anand Mahindra is unhappy with Uber and Ola for one very pertinent reason

Taxi-hailing apps like Uber and Ola might have made your life a tad bit easier but they have become a headache for auto manufacturers. Warning the auto industry against the cab hiring trend, Anand Mahindra, the chairman and managing director of Mahindra Group has said that this might push more and more people to give-up their cars and use cab services for every day commute.

At the launch of Mahindra’s compact sports utility vehicle TUV 300, Mahindra asked, "The age of access is here. There is going to be increasing number of people who would want access to transportation and not own object of transportation. So what are the opportunities? Today, one lives in a world where the Olas and Ubers of the world are stating that a person doesn't need to own a car, for them transportation is commodity. It changes the way one sells."

The auto manufacturer competes with Tata Motors, Hyundai and Japan’s Honda.

An Economic Times report further quoted Mahindra saying that, "You (can) sell to Ola and Uber and you still want to connect with consumers. And I see another world, which is not devoid of people who want to own a car. I have no doubt that it is going to affect the world and it is going to affect the volumes in the auto industry. Young people very rarely need to own anything."

The taxi-hailing apps, which are more convenient to use, easily available, less expensive have taken the streets by storm.

IHS Automotive senior analyst, Gaurav Vangaal responds to the concern rose by Mahindra and said that it’s a good sign that the head of such a big automotive company recognizes the disruptive change.

Responses from the car makers across the globe have started pouring in. They’ve started upgrading their models with new technology to attract young crowd. Ford recently started a car sharing initiative in the US that helps people let out their cars to a selected set of customers to reduce the cost of maintaining the vehicle.

Car makers are also increasingly using cutting-edge technology to offer multimedia systems that connect mobile phones to cars, wherein one can talk on the move, use voice recognition system to make calls, change radio stations — essentially take command without losing control over the steering wheel. Some of these features found in luxury cars are now making their way into the mass market segment too.

While transportation has become commodity for some, Mahindra said, one is entering the age of experience. He said people are going to buy the things that they love and that Mahindra & Mahindra will have to make things that people love. Mahindra is in a sweet spot, as he said people desire to own an SUV over other options.
Image: indiatimes