Hyundai, Kia Invest $ 300 Million In Mobility Service Provider Ola

Hyundai Motor Group Kia Motors Corporation Investment $ 300 Million Ola fleet mobility solutions India-specific customised vehicles
Hyundai, Kia Invest $ 300 Million In Mobility Service Provider Ola

Hyundai Motor Group and Ola announced today of their strategic partnership, under which Hyundai Motor Company and Kia Motors Corporation will make their biggest combined investment to date in the ride-hailing company. Hyundai and Kia together will invest $ 300 mn (about Rs 2,057 crore) in Ola, part of Hyundai Motor Group’s continued efforts to become a Smart Mobility Solutions Provider. The three companies will extensively collaborate on developing unique fleet and mobility solutions; building India-specific electric vehicles and infrastructure; and nurture best-in-class opportunities and offerings for aspiring driver partners with customised vehicles, on the Ola platform.

The agreement to co-create solutions to operate and manage fleet vehicles marks the Hyundai Motor Group’s first foray into the industry, expanding operations from automobile manufacturing and sales to total fleet solutions. In addition, the partnership will offer Ola drivers various financial services, including lease and instalment payments, while vehicle maintenance and repair services are expected to enhance customer satisfaction. Hyundai, Kia and Ola have also agreed to coordinate efforts to develop cars and specifications that reflect the needs of the ride hailing market (both users and drivers). Data accumulated during service operation will allow the companies to make constant vehicle improvements to meet local needs and specifications better, the companies noted.

Ola said it aims to create over 2 mn livelihood opportunities in the mobility ecosystem by 2022. This partnership is claimed to be able to help accelerate micro-entrepreneurship in India’s growing pool of driver-partners. Ola currently hosts over 1.3 mn partners on its platform and will further empower more, with access to tailored offerings across vehicles, financing, insurance and more, substantially bringing down the total cost of ownership for partners.

Euisun Chung, Executive Vice-Chairman, Hyundai Motor Group, said India is the centrepiece of the Group’s strategy to gain leadership in the global mobility market. The partnership with Ola will certainly accelerate Hyundai Motor Group’s efforts to transform into a Smart Mobility Solutions Provider, he added. Chung noted that Hyundai will proactively respond to market changes and persistently innovate to deliver greater value to customers.

The company is excited about its partnership with Hyundai, as Ola progresses to build innovative and cutting-edge mobility solutions for a billion people, noted Bhavish Aggarwal, Co-founder and CEO, Ola. He said that together, the companies will bring to market a new generation of mobility solutions, as they constantly expand their range of offerings for consumers. This partnership will also significantly benefit driver-partners on Ola’s platform, as we collaborate with Hyundai to build vehicles and solutions that enable sustainable earnings for millions of them in the future, added Aggarwal.