Hyundai Motor Group (the Group) has entered into a strategic partnership with ride-sharing major Ola as part of which Hyundai and Kia Motors Corporation will invest $300 million in Ola, which will be their biggest combined investment till date. As per a statement from Ola, this is part of Hyundai Motor Groupâ€™s efforts to become a smart mobility solutions provider.
As part of the deal, the three companies will collaborate on developing unique fleet and mobility solutions and building India-specific electric vehicles and infrastructure. Through the deal, all three players will also look to develop customised vehicles that offer best-in-class opportunities and offering for aspiring Ola drivers.
â€śIndia is the centerpiece of Hyundai Motor Groupâ€™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. Hyundai will proactively respond to market changes and persistently innovate to deliver greater value to our customers,â€ť Euisun Chung, Executive Vice Chairman of Hyundai Motor Group said.
Hyundai Kia and Ola have also agreed to co-create solutions to operate and manage fleet vehicles, marking Hyundai Groupâ€™s first foray into the industry, as it expand operations from automobile manufacturing and sales to total fleet solutions, including vehicle production, fleet operation and mobility services.
The partnership will also offer Ola drivers various financial services, including lease and instalment payments, while vehicle maintenance and repair services are expected to enhance customer satisfaction.
"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,â€ť Bhavish Aggarwal, Co-founder and CEO of Ola said.
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.
Ola, on its part, aims to create over two million livelihood opportunities in the mobility ecosystem by 2022. This partnership will help accelerate micro-entrepreneurship in Indiaâ€™s growing pool of aspiring driver-partners. Ola already hosts over 1.3 million partners on its platform and will further empower hundreds of thousands more, with access to tailored offerings across vehicles, financing, insurance and more, substantially bringing down the total cost of ownership for partners.