Bayan Linjawi, Shadia Abdul Aziz, Reem Faisal, three Saudi Arabian female opinion leaders, designated by Hyundai Motor as its brand ambassadors, pose in front of a Hyundai Motor car in Seoul. Hyundai Motor conducts marketing activities targeting Saudi women, allowed to drive cars.

Hyundai Motor will supply 5,000 vehicles to the Middle Eastern region’s biggest ride-hailing platform, Careem. The deal will immediately bring about roughly 100 billion won in sales. The contract may be interpreted as part of Hyundai Motor’s scheme to tap the future mobility market in the Middle East.

The vehicles, to be supplied by Hyundai Motor, will include brands such as Sonata, Tucson, Santa Fe and Grandeur. Careem will operate Hyundai Motor vehicles on ride-hailing services. Initially, 500 units will be supplied on a pilot project, and the remainder will be delivered by the end of this year.

Hyundai Motor plans to continue to provide maintenance support.

Careem, an Emirate transportation network company based in Dubai, was jointly founded by Mudassir Sherkha and Magnus Olsson, who worked for the global consulting company McKinsey.

Careem has been catapulted to the Arabic version of Uber as many women use ride-hailing services due to Islamic laws banning female driving. Currently, Careem offers ride-hailing services in about 120 cities in 15 countries and regions, including the Middle East, North Africa, India, Pakistan, and Bangladeshi.

Careem employs roughly 1 million “captain” drivers. The company was acquired by Uber for $3.1 billion in March.
Hyundai Motor’s deal with Careem is expected to serve as an opportunity to help the Korean automaker expand its business scope from Southeast Asia and India into the Middle East, a Hyundai Motor official said.

The latest deal is part of Hyundai Motor’s efforts to shift from simply an automaker into a “smart” mobility solution provider and spearhead the global sharing economy business, he added.

The global mobility service market covers car-sharing and car-hailing services, riding on the back of self-driving and the spread of the sharing economy. The market is predicted to surge from $38.8 billion in 2017 to $358.4 billion in 2025.

Hyundai Motor Executive Vice Chairman Chung Eui-sun is determined to expand the future mobility business sector.
Hyundai Motor and Kia Motors invested $275 million to acquire a stake in Grab, a Southeast Asian car-haling service provider.

They also announced a plan to invest $300 million in Ola, an Indian car-hailing firm. Hyundai Motor and Kia Motors plan to boost car sales in Southeast Asia and India by supplying cars for car-hailing services on top of equity investments.

In Korea, Hyundai Motor is ramping up collaboration with startups to develop future mobility platforms. On April 14, Hyundai Motor announced a strategic investment plan to develop the mobility integration platform “UMOS” with startup Code 42. Code 42 was a startup, founded by Song Chang-hyun, former CTO of Naver, at Pangyo, south of Seoul.

The startup is working on the development of the mobility integration platform with a pool of experts specializing in sound recognition, AI, mobility, self-driving, precision map, robotics, and big data. As car-sharing and car-hailing services are on the rise instead of passenger car drivers, an increasing number of automakers and mobility platforms tend to forge alliances and join M&As.

Hyundai Motor’s collaboration with Careem is part of the Korean automaker’s efforts to cash in on Saudi Arabia’s “Vision 2030,” a reform plan by the Middle Eastern crude oil major to reduce its dependence on the petroleum industry and nurture new industries.

In a related development, Hyundai Motor plans to accompany financial support to overhaul Careem’s services and enhance Hyundai Motor’s standing. The Korean automaker plans to cooperate with Saudi financial company LayaFinance so that Saudi captains can participate in car-sharing services by renting cars at cheaper prices.

A view of Santa Fe. (Photos: Hyundai Motor)