Rural mechanisation remains fiercely contested, particularly when it comes to its potential effect on labour. The concern is that it displaces people, and leads to land consolidation and loss of smallholder farmers. Whether this is a misconception or a reality, however, is not yet clear. Over the past three decades, mechanisation in Ethiopia has been a neglected component of agricultural and rural development as it has been considered costly and incompatible with the dominant small and scattered farming system. But recently mechanisation has started to feature in strategies for transforming and intensifying smallholder agriculture. Different business models that provide mechanisation services to famers who otherwise are not able to own and effectively use such machinery have also started to emerge. This paper traces development narratives that shaped smallholder mechanisation policies and practice in Ethiopia, and discusses the emerging fee-for-service mechanisation business models, particularly exploring the issue of inclusivity.