Hyundai, Kia Pump $300 Million In Ola In Their Biggest Bet On Ride Hailing
Ola will raise about $300 million from Hyundai Motor Co. and Kia Motors Corp. as it builds a war chest to take on rival Uber.
Ola is raising about $300 million from Hyundai Motor Co. and Kia Motors Corp. as the homegrown ride-hailing service builds a warchest to take on global rival Uber.
The fundraise is part of the Bhavish Aggarwal-led company’s efforts to raise over $1 billion and comes barely a month after it raised Rs 650 crore from Flipkart Co-Founder Sachin Bansal. It’s also the largest investment by the Korean automakers in mobility services, ahead of their $250 million funding in southeast Asian ride hailing service Grab.
The three companies, the statement said, would build India-specific electric vehicles and infrastructure. The collaboration will also see them create solutions to operate and manage fleet of cabs, offer customised vehicles to drivers and explore mobility solutions globally. Ola drivers will also get various financial services, including lease and instalment payments.
Ola is locked in a fierce battle for market dominance with Uber in India and has expanded to other markets such as Australia, New Zealand, and the U.K. It’s also ramping up its food delivery operations through Foodpanda.
“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 the statement.