By Park Jae-hyuk
Hyundai Motor has signed deals with Mesh Korea, a domestic logistics startup and Chinese tech firm Immotor to seek new growth engines in the “last-mile” logistics industry, the company said Wednesday.
Last-mile refers to the movement of people and goods from a transportation hub to a final destination. In line with the recent growth of e-commerce, last-mile logistics businesses have emerged around the world to create added value.
Hyundai aims to offer innovative services to customers by adding its smart car technologies to the industry.
For this, the automaker invested 22.5 billion won ($19.9 million) in Mesh Korea.
The five-year-old startup running its own logistics brand, VROONG, provides comprehensive logistics services based on last-mile delivery by motorcycles.
Hyundai plans to come up with unmanned delivery vehicles by merging its self-driving and connected car technologies with Mesh Korea's logistics algorithm and infrastructure.
Hyundai Glovis, the logistics unit of Hyundai Motor Group, will also join the partnership to maximize efficiency, a Hyundai Motor official said.
For its expansion in the global last-mile business, Hyundai decided to invest in Immotor, a Shenzhen-based startup specializing in the e-scooter and battery-sharing businesses. The two companies declined to disclose the value of the investment.
With this strategic investment, Hyundai and Immotor will start discussing a partnership in the electric personal mobility business.
The Korean firm plans to enter the last-mile logistics industry in China by utilizing Immotor's technologies.
“Through our partnership with Mesh Korea, we now have global competitiveness in logistics platforms. We will push ahead with new businesses related to autonomous driving and robotics,” a Hyundai Motor official said. “The partnership with Immotor will allow us to create a more convenient and safer mobility environment, so we will be able to provide innovative value to our customers.”