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Hyundai, Kia Invest $300 mn in India’s Ride-hailing Giant Ola

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

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Ola Cabs. Image source: Flickr

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.

Ola Cab. Facebook

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.

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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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Goa App-Based Cab Service’ GoaMiles’ Faces Backlash, Welcomes Ola and Uber

Goa's private taxi associations have been at loggerheads with GoaMiles, accusing the latter of encroaching on their livelihood

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Goa's private taxi associations have been at loggerheads with GoaMiles, accusing the latter of encroaching on their livelihood. Wikimedia Commons

Goa’s only app-based cab service GoaMiles, which is currently facing a backlash from associations of privately-owned taxis, has welcomed pan-India cab aggregating services like Ola and Uber to the coastal state, stating that such technology-based initiatives would encourage competition and help to provide good service to the customers.

“GoaMiles is not opposing Ola or Uber. That is the decision of the government at the end of the day. We are very comfortable with that,” Hemant Prabhu Chodnekar, Operations Manager of GoaMiles told IANS on Saturday.

“We support technology, we believe in technology,” Chodnekar also said, when asked if GoaMiles would welcome setting up of Ola and Uber taxi services in Goa.

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Ola taxi services were introduced in Goa in 2014 but were soon stopped by the state Transport Department following protests by local taxi operators. Flickr

Ola taxi services were introduced in Goa in 2014 but were soon stopped by the state Transport Department following protests by local taxi operators.

Goa’s private taxi associations have been at loggerheads with GoaMiles, accusing the latter of encroaching on their livelihood.

In the last one year, more than a dozen FIRs have been filed by GoaMiles taxi drivers, accusing private taxi operators of assault and giving threats.

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Photo shows an exterior view of the headquarters of Uber in San Francisco. VOA

Chief Minister Pramod Sawant has also said that any further violence from the private taxi operators would result in strict action by the Goa government.

ALSO READ: Uber to Weed out Low-rated Riders for Bad Behaviour

Several attempts by the state government to install and implement a fare meter system have failed, even as members of taxi lobby have also attacked tour coach buses ferrying foreign tourists, accusing tour operators of depriving them of business.

The state also attracts more than seven million domestic tourists every year, who often face hardship due to overpriced and irregular public transports system. (IANS)