Automobile company Hyundai will be infusing $300 million in ride hailing startup Ola. This will be done in a joint venture with Kia Motors Corporation. Through this all the three companies involved that is Ola, Hyundai and Korean automaker Kia Motors will be coming together to provide smart fleet and mobility solutions and will be working on building India-specific electric vehicles, and offering customized vehicles to aspiring driver partners using the Ola’s platform.
Interestingly this announcement comes just days after media reports of Hyundai seeking to own 4% stakes in Bhavish Aggarwal Ola.
“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.Hyundai will proactively respond to market changes and persistently innovate to deliver greater value to our customers,” Euisun Chung, Executive Vice Chairman Hyundai Motor Group said.
Commenting on the new deal 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.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.”
Currently, Ola is the market leader in the ride hailing services in India. Ola hosts about 1.3 million partners on its platform and now with this boost from Hyundai and Korean company Kia Motors will surely help it to expand its business more.