Hyundai And Kia Invest $300M In India's Largest Mobility Service Provider Ola

March 19, 2019 by Hyundai

•Companies to collaborate on building unique fleet and jointly explore mobility solutions in global markets

•Strategic partnership also aims to develop EVs and charging infrastructure customized for Indian market

•Partnership to nurture micro-entrepreneurship opportunities by providing access to customized Hyundai and Kia vehicles as well as financing and insurance benefits for driver-partners

SEOUL/BENGALURU, March 18, 2019 ― Hyundai Motor Group (the Group) and Ola ― one of the world's largest ride-hailing platforms ― today announced a strategic partnership under which Hyundai Motor Company (Hyundai) and Kia Motors Corporation (Kia) will make their biggest combined investment to date, as part the Group's continued efforts to become a Smart Mobility Solutions Provider.

The agreement will see the three companies extensively 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. Hyundai and Kia will invest a total of USD 300 million in Ola.

'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 Euisun Chung, Executive Vice Chairman of Hyundai Motor Group. 'Hyundai will proactively respond to market changes and persistently innovate to deliver greater value to our customers.'

Bhavish Aggarwal, Co-founder and CEO of Ola said, '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.' He 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.'

As part of the strategic collaboration, the companies have agreed to co-create solutions to operate and manage fleet vehicles, marking the Group's first foray into the industry, as they expand operations from automobile manufacturing and sales to total fleet solutions.

The partnership will offer Ola drivers various financial services, including lease and installment payments, while vehicle maintenance and repair services are expected to enhance customer satisfaction.

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Hyundai, Kia and Ola have also agreed to coordinate efforts to develop cars and specifications that reflect the needs of the ride hailing market (both users and drivers). Data accumulated during service operation will allow the companies to make constant vehicle improvements to better meet local needs and specifications.

Hyundai Motor Group expects to accelerate its transition from a 'car manufacturer' into a 'Smart Mobility Solutions Provider', as the partnership's initiatives will allow it to engage in all aspects across the entire mobility value chain ― including vehicle production, fleet operation and mobility services.

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.

About Ola

Founded in 2011 by Bhavish Aggarwal and Ankit Bhati, Ola is one of the world's largest ride-hailing companies. Ola integrates city transportation for customers and drivers onto a mobile technology platform ensuring convenient, transparent, safe and quick service fulfillment. Ola is focused on leveraging the best of technology and building innovative mobility solutions ground-up, that are relevant at a global scale and in transforming commuting experiences by setting the tone for global innovation in this space. Using the Ola mobile app, users across 125+ cities across India, Australia, New Zealand and the UK, can connect with over 1.3 million drivers with a diverse range of vehicles. Driven by a hyperlocal approach, Ola is committed to its mission of building mobility for a billion people.

About Hyundai Motor Group

Hyundai Motor Group is a global corporation that has created a value chain based on automobiles, steel, and construction and includes logistics, finance, IT and service. With about 250,000 employees worldwide, the group's automobile brands include Hyundai Motor Co. and Kia Motors Corp. Armed with creative thinking, cooperative communication and the will to take on all challenges, we are working to create a better future for all.