Hyundai Motor Group and its subsidiary Kia Motors Corporation (Kia) have announced to invest big sum of funds in India's largest cab hailing service Ola.
Both the South Korean companies have pledged to invest $300 million (approx. Rs 2,068.41 Crore) in the Bengaluru-based Ola. Together they plan to develop unique fleet and mobility solutions including 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 latter's 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," Euisun Chung, Executive Vice Chairman of Hyundai Motor Group said in a statement.
"Hyundai will proactively respond to market changes and persistently innovate to deliver greater value to our customers," Chung added.
The partnership is a first for Hyundai and Kia Motors, from being car-maker to smart mobility solution provider, which include cab operation and fleet management. With such large investment, Ola intends to improve the driver partner's financial stability in terms of lease and instalment payments and also with regular repair and maintenance of the car, the company will be able to enhance customer ride experience.
"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. 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," Bhavish Aggarwal, Co-founder and CEO of Ola said in a statement.
As per Ola, it has 1.3 million partners on its platform and with the new funds, Ola aims to create over two million livelihood opportunities in the mobility ecosystem by 2022. It will also 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.
Most importantly, it is expected to accelerate micro-entrepreneurship in India's growing pool of aspiring driver-partners.
One of the key point mentioned by the companies is the funding will help fast track the developing of electric vehicles. With rising pollution in the major cities across India, this will definitely be boon to citizens. Toxic air has become a serious concern in Delhi, Bengaluru, Gurugram, Mumbai and other select North Indian states.
Last year, the Supreme Court set timings for burning firecrackers in the cities, but recently it is contemplating revising the order, has it had limited impact. Also, it is looking into the issue of banning aged vehicles and bringing stricter regulations for car makers in terms of emission standards, the legal requirements governing air pollutants released into the atmosphere by an automobile.
Besides major cities in India, Ola operates in multiple major international markets such as Australia, New Zealand and UK including South Wales.