With the shared mobility concept gaining traction in India and other markets, South Korean automobile manufacturer Hyundai Motor Group on Tuesday announced an investment of $300 million in India’s biggest cab aggregator Ola Cabs, as part of a strategic partnership between the two companies. With this deal, both Hyundai and Kia Motor Company will work with the Bangaluru based start-up for developing customized electric vehicles and charging stations appropriate for ride hailing applications.
The agreement will see the three companies 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, both Hyundai and Ola said in a joint statement.
According to Euisun Chung, executive vice chairman, Hyundai Motor Group, India is the centerpiece of Hyundai’s strategy to gain leadership in the global mobility market and the partnership with Olais meant to accelerate the group’s efforts to transform into a smart mobility solutions provider.
Japanese investment banking firm Soft Bank backed Ola was in talks with vehicles manufacturers to provide specialized electric vehicles for its cab services.
“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,"Bhavish Aggarwal, Co-founder and CEO, Ola Cabs, in the statement mentioned above.
Hyundai Motor Group has been focusing on collaborations with start-ups in the field of shared mobility in India. In August last year Hyundai Motor Group announced an investment of ₹100 crore in car sharing platform Revv.
Both Hyundai and Ola will collaborate to develop solutions to manage and operate entire fleet of electric and connected vehicles. Both entities will also offer electric vehicles to drivers in lease model where in the drivers can pay monthly installments.
“Ola aims to create over two million livelihood opportunities in the mobility ecosystem by 2022. 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, with access to tailored offerings across vehicles, financing, insurance and more, substantially bringing down the total cost of ownership for partners," said the company in a joint statement.