Seeking New Growth Driver, Hyundai Invests in Last-Mile Logistics Firms

(image: Kobizmedia/Korea Bizwire)

SEOUL, Jul. 25 (Korea Bizwire) — Hyundai Motor Co., South Korea’s biggest carmaker by sales, has invested in last-mile logistics companies as part of efforts to secure a new growth driver, the company said Wednesday.

Last-mile logistics refers to the final step of the delivery process from a distribution center or facility to the end user. The focus of last mile logistics is to deliver items to the end user as fast as possible.

Hyundai has invested 22.5 billion won (US$20 million) in Mesh Korea, a leading domestic last-mile logistics services provider, to apply its automotive and connected car technologies to Mesh Korea’s delivery vehicles, the company said in a statement.

The Korean carmaker has also invested in Immotor to partner with the Chinese last-mile logistics startup to launch a new business related to the last-mile logistics industry, it said.

Hyundai didn’t disclose the value of its investment in Immotor.

The last-mile logistics services have emerged as an innovative business that can be merged with internet of things, autonomous driving and advanced robot technologies.

As the domestic foods delivery market continues to grow, the last-mile logistics market is expected to grow to 20 trillion won in 2019 from 15 trillion won this year, the statement said.

(Yonhap)