DENSO and Global Mobility Service to begin testing refrigerated delivery service in Indonesia

- Field test will research incorporating small, refrigerated parcels into transport service -

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Sep 30, 2019, 12:23 ET

KARIYA, Japan, Sept. 30, 2019 /PRNewswire/ -- DENSO Corporation and Global Mobility Service, Inc., (GMS) announced today that in October they will begin field testing a new transport service incorporating small refrigerated parcels to deliver fresh food and other products to commercial facilities and households in Indonesia. In the field test, DENSO and GMS aim to build a cold chain logistics network in the country and identify and solve potential issues in establishing a new commercial business model for the future.

In Southeast Asia, there is growing demand for frozen and refrigerated food delivery due to diversifying dietary habits, economic growth and the spread of e-commerce. However, current refrigerated logistics services still experience issues with food safety and quality, and it is necessary to improve the effectiveness of refrigerated trucks in the region. The increased demand for deliveries also serves as an opportunity to create new delivery driver jobs, particularly for those in need of work.

During the field test, small, refrigerated trucks equipped with DENSO's small freezer will be lent to drivers. Drivers will then deliver fresh and frozen food for shippers. DENSO and GMS will examine the needs for transportation services of refrigerated parcels and driver's revenues from delivering fresh and frozen food for shippers. The two companies will aim to operate services using GMS's loan repayments system* in the near future and open the delivery job for those who do not have enough income to take out a loan for a truck as well as improve refrigerated transport services in Indonesia.

In March 2017, DENSO took its first stake in GMS to verify the development potential of the mobility IoT business. In August 2019, DENSO took an additional stake to develop and expand the business for commercial vehicles in emerging countries. The company will continue to identify the needs and issues of service providers, promote market-oriented business development, and accelerate efforts to build the logistics network including the cold chain.

As a global startup from Japan specializing in financial inclusion business, GMS conducts business in Japan and other countries in Southeast Asia. Through our vision "We make people happy through the provision of mobility service," we work towards realizing a system in which every individual is correctly evaluated for their work. In order to create opportunities for the 1.7 billion people who do not have access to financial services, we will continue our efforts as a social-problem-solving company.

DENSO and GMS will work on the safe and secure transport of food and contribute to creating a sustainable society to improve the lives of people who wish to work by deploying innovative services using IoT technologies in cooperation with partner shippers and financing companies.

* The system that allow fleet managers to manage the vehicles in real time, including remotely preventing the engine from starting when drivers miss loan payments and restarting the engine when they repay them. This system is realized by using an IoT device and mobility service platform.

- Overview of the field test

Date of concluding an agreement

June 10, 2019

Objective

To verify the business feasibility of offering services to transport refrigerated small parcels in order to build a cold chain logistics network in Indonesia

Details
(including matters to
be studied)

- Visit candidate shippers who are willing to participate in the field test

- Verify the economic rationality of financial institutions providing loans to delivery drivers after the field test

- Conduct a survey on business feasibility in ASEAN and other countries and conduct test marketing

- Conduct a study to gather and analyze the temperature management data of freezers and refrigerators manufactured by DENSO

- Overview of DENSO Corporation

DENSO is a $48.3 billion global mobility supplier that develops advanced technology and components for nearly every vehicle make and model on the road today. With manufacturing at its core, DENSO invests in its 211 facilities in 35 countries to produce thermal, powertrain, mobility, electrification, & electronic systems, to create jobs that directly change how the world moves. The company's 170,000+ employees are paving the way to a mobility future that improves lives, eliminates traffic accidents, and preserves the environment. Globally headquartered in Kariya, Japan, DENSO spent 9.3 percent of its global consolidated sales on research and development in the fiscal year ending March 31, 2019. For more information about global DENSO, visit https://www.denso.com/global

- Overview of Global Mobility Service Inc.

We provide an innovative service model throughout the ASEAN countries as well as Japan, with the use of "MCCS*1," our proprietary IoT device which allows the remote operation of mobility, and "MSPF*2," our Mobility Service Platform. GMS has been highly evaluated as a model case for its contribution to the SDGs: its recognition is not only evident in its admission to Keidanren in March 2019 as a business model which has high affinity to Society 5.0 for SDGs, but also in the selection of Tokushi Nakashima, representative of GMS, to become a member of METI's "SDG Management/ESG Investment Study Group" and to take part in the publication of "The Guide for SDG Business Management."

*¹"MCCS" refers to Mobility-Cloud Connecting System, which is a system that specifies the location of the car and enables safe remote operation, as well as sensing.
*²"MSPF" refers to Mobility Service Platform, which is a platform system that performs management, control, data analysis, etc. for mobility, and enables linkage with external systems via Open API in the cloud.

SOURCE DENSO