Hyundai & Kia invest $300m in Ola
Hyundai Motor Group and ride-hailing platform Ola announced a strategic partnership under which Hyundai Motor Company and Kia Motors Corporation will make their biggest combined investment to date.
According to a statement, the agreement will see the three companies extensively collaborate on developing unique fleet and mobility solutions; building India-specific electric vehicles and infrastructure; as well as nurturing best in class opportunities and offerings for aspiring driver partners with customised vehicles, on the Ola platform. Hyundai and Kia will invest a total of $300 million in Ola.
As part of the strategic collaboration, the companies have agreed to co-create solutions to operate and manage fleet vehicles, marking the Hyundai 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. 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 better meet local needs and specifications.
Hyundai Motor Group says it 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.