Ride-hailing firm Ola has now reportedly raised more than US$3.8 billion in new investments to expand its global mobility solutions and its electric vehicle development. A good chunk of the new funds apparently came from South Korean automotive giants, Kia and Hyundai. Both companies reportedly gave the Indian company US$300 million in new investments as part of a deal that would see them collaborate in developing mobility and fleet solutions for various global markets.
Part of the deal will reportedly involve Hyundai and Kia building local infrastructure in India to support new electric vehicles for domestic and commercial applications. While Kia has had some experience in providing fleet solutions in various nations, this will be the first time that Hyundai Motor Group will be diving into the particular segment. Prior to the deal, Hyundai has mainly been focusing on the manufacturing of its various vehicle models for individual consumers. Hyundai previously stated that it intends to transition from being just a car manufacturer to being a global provider of global smart mobility solutions.
Through the deal, Ola's driving partners will reportedly be given customized vehicles developed and manufactured by both Hyundai and Kia. Partners will also be given a fair installment plan to pay for the vehicle they will be using with Ola. Financial support will be given to Ola to initially lease the vehicles. As for the vehicle's maintenance and repair, the South Korean firms will be providing subsidies that will greatly reduce the cost of ownership for their vehicles.
According to Ola, the new investments it had gained from various firms will be used to create more than 2 million jobs by 2022. The company already has around 1.2 driving partners in over 169 cities worldwide. Ola currently operates its ride-hailing and taxi service in countries such as the UK, New Zealand, and Australia. The company's CEO Bhavish Aggarwal mentioned in a statement that the new partnerships are geared towards providing its drivers with a better service that would allow them to have sustainable earnings through various subsidized solutions. These solutions will include fleet management software, adequate infrastructure, and comprehensive ownership structures for drivers.
Ola initially started out as an online cab aggregator in Mumbai. It quickly expanded its network of vehicles, which is now estimated to include more than 10,000,000 units across different cities around the world. As of December last year, the company has been valued at around US$5.7 billion. Some of its largest stakeholders include Japanese holding conglomerate SoftBank Group.
