Hyundai Glovis partners with parking solution startup to develop urban delivery platform

10, Jul. 2020

Photo by RoseBox رز باکس on Unsplash
Photo by RoseBox رز باکس on Unsplash

SEOUL, AJU - Hyundai Glovis, the logistics wing of South Korea's Hyundai auto group, has partnered with Park AI, an artificial intelligence-based car parking solution startup, to use idle spaces in urban areas as logistics distribution stations for short-distance parcel delivery services.

South Korea, well known for quick one-day and overnight delivery services, have more than one thousand logistics warehouses where deliverymen pick up parcels. Many warehouses are located on the outskirts of big cities.

Hyundai Glovis said that idle and open spaces in urban areas would be turned into small-sized logistics distribution centers. When a citywide network of urban logistics centers is set up, deliverymen using trucks and motorcycles can travel short distances to deliver parcels from urban parcel warehouses to customers.

"Because non-contact consumption is spreading globally, we speculate that the business value of rapid urban logistics services is also huge," a Hyundai Glovis official was quoted as saying. The logistics company said it will continue to support ideas from prominent logistics startups.

Hyundai Glovis plans to operate a short-distance urban parcel delivery service in Seoul and gradually expand it across the country. South Korea's parcel delivery service industry valued at 6.6 trillion ($5.5 billion) won has rapidly bulked up its size alongside the rapidly growing ecommerce market.

Park AI develops AI-based parking lot solutions including automated kiosks that can recognize vehicles and charge parking fees as well as an autonomous valet system that guides autonomous cars to a designated parking space.