Mahindra, a known name in the Indian tractor market, has decided to keep pace with the changing times and embrace the renting trend that has captured upon the current generation.
Nowadays, whether it’s a car, a designer dress or a piece of furniture, everything can be rented out, used and returned once the work is done.
The market giant is on a mission to do the same thing to the tractor market with Trringo what Uber and Ola have been successful in achieving with the car rental market in the country.
In order to get started on its mission, Mahindra has decided to set up Trringo as a venture functioning on a franchisee-based model, in which the giant will invest more than Rs.10 crore. According to Mahindra, the tractor hiring/rental market in the country could be as huge as Rs. 15,000 crore per annum.
Expected to go live from June this year, Trringo is modelled after Mahindra First Choice, which is the tractor giant’s pre-owned car sales business. Trringo will offer a digital platform to help connect people looking to hire tractors with those willing to rent their self-owned tractors. It will also have a location-based mapping system that will help the two interested parties get together and suggest them the closest franchisee.
Interestingly, Trringo by Mahindra comes at a time when the tractor sales have nosedived for successive years because of the drought. According to statistics made available by Tractor Manufacturers Association, the tractors sales in the country have seen a huge 13% decrease to 422,997 units in the 10 months to January earlier this year.
According to the company, Trringo is an effort to make the tractors available in the areas where they’re really needed i.e. in the farming and agricultural lands. Farmers have to often resort to borrowing to buy these expensive tractors and end up in huge debts. Trringo will make sure that the farmers get the tractors for the tasks they want and the duration they want, without having to be at the mercy of money lenders and banks.
Trringo’s model is expected to mint out the green notes in two ways: royalty money paid by the franchisee and the commission money charged on each tractor let out by the franchise.
Mahindra for long has been trying to find its way to tap the expanding e-commerce space in the country. In October, 2015, the company had announced an online platform SmartShift that aims to connect cargo owners and transporters. One can access the service through the website, download its Android mobile app or make a call to the company’s dedicated call centre.
In September last year, Mahindra has announced its e-commerce venture M2ALL.com, which would offer the company’s entire range of products and services.