Companies

Hyundai, Kia invest $300 mn in Ola

Our Bureau Bengaluru | Updated on March 19, 2019 Published on March 19, 2019

Bhavish Aggarwal, Co-founder and CEO of Ola and Euisun Chung, Executive Vice Chairman of Hyundai Motor Group.

With the partnership, Hyundai aims to enter the fleet vehicle industry

Hyundai Motor Group (the Group) and Ola announced a strategic partnership under which Hyundai Motor Company and Kia Motors Corporation will invest a total of $ 300million in Ola, making it their biggest combined investment to date.

The agreement will see the three companies collaborate on developing fleet and mobility solutions, building India-specific electric vehicles and infrastructure, as well as nurturing opportunities and offerings for aspiring driver partners with customised vehicles on the Ola platform.

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

As part of the strategic collaboration, the companies have agreed to co-create solutions to operate and manage fleet vehicles, marking the Group’s first foray into the industry, as they expand operations from automobile manufacturing and sales to total fleet solutions. 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.

Bhavish Aggarwal, co-founder and CEO of Ola said, “We're very excited about our partnership with Hyundai, as Ola progresses to build innovative and cutting-edge mobility solutions for a billion people. Together, we will bring to market a new generation of mobility solutions, as we constantly expand our range of offerings for our consumers.” He added, “This partnership will also significantly benefit driver-partners on our platform, as we collaborate with Hyundai to build vehicles and solutions that enable sustainable earnings for millions of them, in the time to come.”

Hyundai, Kia and Ola have also agreed to coordinate efforts to develop cars and specifications that reflect the needs of the ride hailing market for both users and drivers. Data accumulated during service operation will allow the companies to make constant vehicle improvements to better meet local needs and specifications.

Hyundai Motor Group expects to accelerate its transition from a ‘car manufacturer’ into a ‘Smart Mobility Solutions Provider’, as the partnership’s initiatives will allow it to engage in all aspects across the entire mobility value chain ― including vehicle production, fleet operation and mobility services.

Ola aims to create over two million livelihood opportunities in the mobility ecosystem by 2022. This partnership will help accelerate micro-entrepreneurship in India’s growing pool of aspiring driver-partners.

Published on March 19, 2019
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