In their single biggest investment ever, Hyundai Motor Co and its affiliate Kia Motors Corp on Tuesday announced an investment of Rs 2,068 crore ($300 million) in India's leading ride-hailing cab aggregator Ola.
The agreement will see the three companies collaborate on building India-specific electric vehicles and infrastructure and developing unique fleet and mobility solutions, Hyundai said.
"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," said Bhavish Aggarwal, Co-founder and CEO of Ola.
Hyundai Motor and Kia Motors will invest $240 million and $60 million respectively in Ola.
As part of the strategic collaboration, the companies have agreed to co-create solutions to operate and manage fleet vehicles, marking the Hyundai Motor 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 instalment payments, while vehicle maintenance and repair services are expected to enhance customer satisfaction, Hyundai said.
Hyundai, Kia and Ola also agreed to coordinate efforts to develop cars and specifications that reflect the needs of the ride hailing market.
Ola earlier this month raised Rs 400 crore from its early investors, including Tiger Global and Matrix India, to fund its electric mobility business.
The nine-year-old firm had set up in 2018 Ola Electric Mobility Ltd to use battery-run cabs as a pilot project at Nagpur in Maharashtra.
--IANS
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