Lotte Rental invests ￦25 billion in 42dot
Car rental company Lotte Rental has invested 25 billion won ($22 million) in autonomous driving start-up 42dot ahead of its initial public offering (IPO) to strengthen competitiveness in the mobility sector.
42dot develops level 4 autonomous driving technology, the step before full autonomy where a car is able to operate on its own under certain circumstances.
With the investment, Lotte Rental plans to create a multi-service mobility platform including services such as renting electric vehicles (EVs) and providing logistics deliveries on autonomous cars.
“The investment into 42dot is Lotte Rental’s first step into becoming a mobility platform of the future,” said Kim Hyun-soo, CEO of Lotte Rental.
Using cars with 42dot's autonomous driving technology, Lotte Rental will begin test runs of vehicles on Jeju Island in the second half of 2020.
A car-sharing service specifically for EVs will be launched next year. In the long-term, the company has plans to create a logistics delivery service running on autonomous vehicles and EVs.
The investment announcement comes ten days before the company’s listing on the Kospi. Public subscription for Lotte Rental shares run through Tuesday at a price of 59,000 won per share. The company will start trading on Aug. 19.
Lotte Rental announced that part of the money earned from the IPO will be used to fund their future mobility businesses.
BY LEE TAE-HEE [firstname.lastname@example.org]