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Hyundai, Kia invest $300M in cab-hailing service Ola

South Korean carmakers Hyundai Motor Co. and Kia Motors Corp. on March 19 said they will invest $300 million in Indian cab-hailing service Ola to expand their portfolio of smart mobility services.

In early March, reports surfaced that Hyundai planned to invest $250 million in Ola for a 4%, which could value the service at more than $6 billion.

The Hyundai Motor Group-owned carmakers plan to collaborate with Ola to build electric vehicles for its fleet and to develop charge stations in India. Ola drivers will also have access to Hyundai and Kia vehicles as well as financing and insurance benefits.

Ola and the carmakers will develop solutions for the fleet to improve operations and management. Ola will also receive financial leases, installment plans and improvements to its maintenance and repair services. The team-up marks the Hyundai Group's first venture into mobility services.

The cab-hailing service employs 1.3 million drivers across India.