Automated & Connected

Hyundai and Kia transition to mobility solutions with $300 million investment in Ola

The partnership agreement will see Hyundai, Kia, and Ola—India’s ride-hailing platform—collaborate on fleet and mobility solutions, develop EVs and charging infrastructure for the Indian market, and explore opportunities and offerings for driver partners with customized vehicles on the Ola platform.

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

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. 

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 vehicle improvements to better meet local needs and specifications, says the release. 

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 across the mobility value chain—including vehicle production, fleet operation, and mobility services.

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Ola aims to create over two million livelihood opportunities in the mobility ecosystem by 2022, according to the release. The 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.

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."

 

Mark Miller is a contributing writer to SAE International. He has worked as a technology writer and editor for IBM and other advanced information technology firms. His areas of concentration include artificial intelligence, cybersecurity, analytics, and Internet of Things technologies.