South Korean automobile giant Hyundai Motor Group today (19 March) announced that it will invest $300 million in the ride-hailing company Ola to develop India-specific mobility solutions. This investment will be jointly made by Hyundai Motor Company (Hyundai) and Kia Motors Corporation (Kia).
This will be the biggest combined investment to date for the two auto companies as the larger Hyundai Group continues its efforts to become a smart mobility solutions provider.
“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 us into a Smart Mobility Solutions Provider,” said Euisun Chung, Executive Vice Chairman of Hyundai Motor Group.
As part of their ‘strategic partnership,’ the three companies - Ola, Hyundai and Kia - will co-create solutions to operate and manage fleet vehicles. According to a company statement, this collaboration will be the “ (Hyundai) Group’s first foray into the industry, as they expand operations from automobile manufacturing and sales to total fleet solutions.”
The trio has also agreed to coordinate efforts to develop cars and specifications that reflect the needs of the ride-hailing market (both users and drivers). Additionally, Ola drivers are also expected to benefit from this partnership through better financial services on car ownership.
For the India-based Ola, this partnership will help accelerate micro-entrepreneurship in India’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,” the company said.
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