Hyundai Motor Group and Ola, the ride-hailing platform, announced on Tuesday (March 19) a strategic partnership in which Hyundai and Kia Motors Corp. will invest $300 million.
According to a press release from Ola, Hyundai and Kia are making the largest combined investment. Under the agreement, the three companies will collaborate on developing a fleet of vehicles and smart mobility solutions. They will also build India-specific electric vehicles and infrastructure, while nurturing best-in-class opportunities and offerings for drive partners with customized 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 Chung Eui-sun, 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 deal, the companies will create solutions to operate and manage fleet vehicles, which marks Hyundai’s first entrance into the industry. Ola drivers will get access to various financial services, such as installment payments and vehicle maintenance and repair. The three will also coordinate efforts to develop cars that reflect the needs of the ride-hailing market. Data accumulated during service operation will allow the companies to make constant vehicle improvements to better meet local needs and specifications, according to the press release.
“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,” said Bhavish Aggarwal, co-founder and CEO of Ola. “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.”