[TusharK]

According to a media report, Hyundai and Ola are holding discussions that could result in the Korean carmaker investing US$ 200-300 million and picking up a 4% stake in the ride-hailing firm. Neither Ola nor Hyundai have confirmed this development.



Hyundai's entry could be seen as a move to balance out the influence of Ola's largest investor Softbank, which controls 26% stake in the company. Last month, Sachin Bansal - co-founder of Flipkart, invested Rs. 650 crore in Ola. Other investors in the company include Tiger Global (15%), Tencent (10%), Matrix Partners (8%), DST Global (6%) and Temasek (5%).

In August 2018, Hyundai had invested Rs. 100 crore in car rental startup Revv. The Korean carmaker isn't the only manufacturer to invest in on-demand mobility platforms. Mahindra and Ford have invested in self-drive rental company Zoomcar, while Toyota has picked up stake in Droom - a used car marketplace and auto services company.

Source: Entrackr

Link to Team-BHP News

[GTO]

Are services like Ola & Revv the today & "tomorrow" of the auto world? I certainly think so. People will still own cars, but there is no doubt how app-based cabs, self-drive rentals & car sharing are changing the dynamics of the industry.

$300 million is pocket change for Hyundai to get their foot in the door. Ola has shown that it is more than capable of fighting Uber, so it's a smart bet from Hyundai.

Maruti is surprisingly absent from the scene (even Ford invested in Zoom).

[avdhesh15]

I don't Maruti would obtain shareholder approval, because no matter what happens, their vehicles will continue selling to drivers by the bucket load. As someone who uses Ola outstation at least twice a week, over 80% of my sedan rides have been in a DZire, and the balance in Etios, Xcent. Drivers swear by Maruti.

[reihem]

I wonder if this will hurt the brand ? When it becomes synonymous with taxis ?

[NaXal]

I am going little off topic here.

Apart from obvious need & advantage of self drive car rental services, one small benefit for a new car buyer is the ability to test a new car before making purchase decision.

Think about it.

If I am in the market for a new car, I can get an extensive test drive of different models via these services. Yes, certainly the showrooms are there but via these self drive rentals, I can test it like I own it.

People are unknowingly falling in love with certain cars of these self drive fleet. As a manufacturer, having your models available with them makes a considerable difference in purchasing decision.

[narayan]

The auto industry is up for its next big inflection point. Very logical for today's OEMs to get into companies or players that would have a larger share of the profit pool in the industry...which now is with the car manufacturer. Mobility service providers, charging infrastructure companies, battery makers, connected car companies ( among the many ) are the ones who will thrive tomorrow. Not the company that made the car.

[GTO]

Originally Posted by avdhesh15

I don't Maruti would obtain shareholder approval, because no matter what happens, their vehicles will continue selling to drivers by the bucket load.

On the other hand, if there are emerging trends that Maruti misses out on, the Suzuki CEO will be in trouble. Maruti's India CEO is just there to make sure the ship sails steady though; one hardly sees any ground-breaking decisions from him (see how often Maruti changes its CEOs).

I think Suzuki is taking it easy because they've gotten "engaged" to Toyota. Now, they'll slowly start working on the "marriage", after which it'll all be a long + happy "honeymoon".

Originally Posted by reihem

I wonder if this will hurt the brand ? When it becomes synonymous with taxis ?

Not really. They are already there. We see lots of Marutis, Hyundais, Toyotas in cabs currently. Sure isn't affecting their brand or sales. It's anyway the entry-level cars that we see as taxis. No Vernas or Vitara Brezzas chosen by or sold to taxis.

[locusjag]

I wish Force would tie up with Zoomcar, Ola or Uber and begin offer Tempo Travelers for people to drive them on outstation trips with more than 7 people on board.

[nirmaljusdoit]

With so much funds getting infused into Ola, i wonder where exactly are these resources being utilized ?

From my personal experience with Ola, i have found their services to be deteriorating over the years. Poorly maintained cars, poor driver training, interiors are filthy most of the time. The latest issues are with drivers calling to find out drop locations and then cancelling without any information or with a don't care attitude. Add in the recent hikes and rates arent competitive for me. I would rather take out my hatchback or use my scooter. I would only pay more for a clean car even a regular hatchback and proper driver attitude.

I have stopped using Ola and only use when required. Two wheelers are a better option and the self driven bike hiring segment seems to have taken off in a big way in Bangalore at least.

Has Ola managed to become profitable yet ? There seems to be a vision which is lacking in the company. What exactly are they trying to achieve in the long run ?

[AutoNoob]

News confirmed :

Source : Hyundai Official Press Release
Source : NDTV

South Korean automakers Hyundai Motor Co and Kia Motors Corp will together invest $300 million in Indian ride-hailing platform Ola, playing catch-up in the global race to invest in mobility firms.

The move follows the $275 million that the pair invested in Singapore-based ride-hailing firm Grab last year.

Hyundai, Kia and Ola will collaborate to develop fleet and mobility solutions, electric vehicles and infrastructure specific to the Indian market, they said in a joint statement.

[GTO]

This just in from Hyundai:

Hyundai and Kia Invest $300m in India’s Largest Mobility Service Provider Ola

 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

New Delhi, March 19, 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 of 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 instalment 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 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.