Hyundai, Kia to invest $300 million in Ola
As part of the strategic collaboration, the companies have agreed to co-create solutions to operate and manage fleet vehicles.
New Delhi: Hyundai Motor Group and on Monday announced that it is entering into a strategic partnership with ride-hailing platform Ola under which Hyundai and Kia Motors will invest a total of USD 300 million in Ola.
Hyundai said that this will make their biggest combined investment to date, as part the Group’s continued efforts to become a Smart Mobility Solutions Provider.
“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 customized vehicles, on the Ola platform,” a company statement said.
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.
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.