Pune-based two-wheeler major Bajaj Auto has announced a strategic investment in Yulu, a leading shared e-mobility service provider in India. Under the partnership, Bajaj Auto is to invest $8 million (Rs 57.7 crore) in Yulu to complement this strategic relationship.
As part of the understanding, Yulu will source electric two-wheelers from Bajaj Auto that have been co-designed and manufactured exclusively for shared micro-mobility. In addition to that, the manufacturer will also consider facilitating the vehicle finance needs of Yulu for a large-scale deployment of its micro-mobility electric vehicles.
Bajaj Auto says consumer adoption of EVs has been limited, due to practical factors like range anxiety and availability. On the other hand, improving asset utilisation of the existing class of vehicles with shared-mobility platforms has not been able to reduce the dual problem of traffic congestion and pollution in a significant way.
With its IoT-enabled EV fleet and Machine Learning (ML) driven network intelligence, Yulu says it is solving the demand-supply problem and growing its footprint in a sustainable manner. Through its early partnerships with mass rapid-transit systems like the metro rail, Yulu layers commuter patterns on top of its network intelligence to bring high availability and convenience to commuters. This technology-driven approach is key to continuously increase operational efficiency and help reduce traffic congestion in a meaningful way.
Commenting on the partnership, Rajiv Bajaj, MD, Bajaj Auto said, “At Bajaj Auto, we believe that the two factors of congestion reduction and pollution control will drive the segment of shared micro-mobility in the future. That, coupled with the expansion of mass rapid transport system like the metro in large cities, will further boost the demand for flexible last-mile connectivity. In Yulu, we find an experienced and committed partner with robust achievement of success metrics in a very short time. And this is why we decided to partner with them in their journey of bringing Yulu service to every neighbourhood of urban India.”
With this partnership, Yulu will consolidate its leadership position in the shared electric micro-mobility space and help accelerate the adoption of EVs in India. Yulu is driving this change in India by building an ecosystem of EV led micro-mobility and aims to expand services to eight mega cities and select smart cities under the Smart Cities Mission. Yulu says it will benefit immensely with the knowledge and expertise of Bajaj as a leading manufacturer of two-wheelers and three-wheelers.
The fresh round of investment will be utilised for further strengthening of the mobility platform and deepening of the technology solutions for rapid expansion. Yulu deploys machine learning and AI to accurately predict the demand and supply of its assets and resources, which ensures vehicle availability and operational efficiency. Yulu plans to increase its fleet size to 1,00,000 electric two-wheelers by December 2020, with an extensive network of its battery-swapping stations across the cities where it operates.
Amit Gupta, co-founder and CEO, Yulu, said, “Succeeding in the shared micro-mobility business is incumbent upon creating winning partnerships to ensure assured supply of high-quality electric vehicles in large numbers. Bajaj Auto is the leading automaker of India and is respected globally for its quality and manufacturing capabilities at scale. Yulu is the leading electric micro-mobility service provider that requires reliable, durable and comfortable electric vehicles to serve its customers, hence a committed manufacturing partner is crucial to our success. In Bajaj, Yulu finds this strategic partnership and it is a win-win relationship.”
“Yulu’s electric two-wheelers will help Indian commuters with the first and the last-mile connectivity option. This partnership aims to solve the mobility challenges of urban India in an eco-friendly manner," added Gupta.