The Hyundai Motor Group along with Kia Motor Corporation announced on March 19, 2019, about them investing $300 million (roughly Rs. 2,051 crores) in India’s ride service Ola.
The collaboration of the three companies will benefit the masses as they plan on developing fleet and mobility solutions that will only be specific to the Indian market. Surprisingly, this big reveal announcement came just days after a report on Hyundai intentions to buy 4% stakes in the popular mobility service provider came to light, and now they have partnered with Ola.
Euisun Chung, Executive Vice Chairman Hyundai Motor Group said, “India is the centrepiece 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 Solution Provider.” He further added, “Hyundai will proactively respond to market changes and persistently innovate to deliver greater value to our customers.”
On the other hand, Bhavish Aggarwal, Co-Founder and CEO of Ola said, “We’re very excited about our partnership with Hyundai, as Ola progresses to built 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.”
Aggarwal further 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.”
The deal, Hyundai and Kia’s biggest combined investment, marks Hyundai Motor’s foray into fleet vehicles as the company expands operations to total fleet solutions. As part of the deal, Hyundai will also offer various financial services to Ola driver, including lease and instalment payments.
As for Ola, the company says that this partnership will further its aims to create over two million livelihood opportunities in the mobility ecosystem by 2022 and promote micro-entrepreneurship among aspiring driver partners in the country.