Kia Corp. Partnering With S.lab Asia Inc. To Launch Last-Mile Delivery Project In Singapore

The foundation for the future innovation of Kia’s Purpose Built Vehicle (PBV) business is underway. Intentions to break through Singapore’s last-mile delivery market, Kia Corporation will be partnering with a cold chain startup company, S.lab Asia Inc. 

Kia Corporation and S.lab Inc. have signed an agreement on January 28 and with the use of Kia’s Niro EV crossover model, they plan to launch a pilot project in Singapore while evaluating the potential for a future PBV-based business model.

Kia Corporation’s Vice President and Head of the Purpose Built Vehicle Business Group DongSoo Ahn said, “Through this agreement, Kia will leave a strong image of itself as a collaborative partner providing new value to global mobility service companies.”

This process is a response to the fast growing e-commerce market and the strategic model will help benefit the PBV capabilities and service operations for both sides. The Kia Niro EV is enhanced and custom made for last-mile logistics service which will be used in Singapore’s city center.

Kia plans to fully realize the implementation of the project by creating a common foundation with key partners in this area. Those responsible are Hyundai Motor Group Innovation Center: SP Group which is Singapore’s largest EV-charging company and Cycle & Carriage, Kia’s local authorized dealer. 

“Kia will strive to lead the global PBV market by establishing partnerships with various operators through not only last-mile delivery services but also various open-innovation collaborations,” he further added. 

The PBV projects’ proficiency and experiences will be of major benefits to Kia through this venture. Other than enabling them to develop EV-based PBVs that are adjusted for last-mile delivery, it also helps them in advancing the Car as a Service (CaaS) platform, establishment of an EV-charging ecosystem and in creating an EV fleet management services structure.

Singapore has been chosen as ground zero for its next PBV project. This is to take the opportunity of the city state’s world-class infrastructure, vibrant economy and rapidly advancing e-commerce. Another important decider for Kia was Singapore’s initiative to gradually phase out internal combustion engine transportation by 2040.

Purpose Built Vehicle (PBV) is Kia’s core business strategy known as “Plan S”, these are vehicles made for a specific usage like the last mile delivery. S.lab Asia is a startup company that focuses on producing boxes for fresh product deliveries as well as offering advanced delivery services.

The joint venture between Kia Corporation and S.lab Asia Inc. will see Kia’s Niro EV crossover model with some modification for its interior. This is for the ease of unloading and uploading of S.lab Asia’s boxes with maximum loading space. 

Furthermore, Kia in collaboration with S.lab Asia Inc. will begin its operations in the first half of this year in Singapore. During this time Kia will assess and advance its PBV business model which include the product and services aspects, while at the same time will further improve its PBV strategy for the Korean market in hopes to expand the services to the country.