GS Retail buys a slice of Kakao Mobility
GS Retail invested 65 billion won ($55 million) in Kakao Mobility, acquiring 1.3 percent of the company and expanding its partnership in deliveries.
GS Retail, which owns the GS25 convenience store chain, announced Wednesday it will work with Kakao Mobility using so-called big data to develop its logistics and delivery services.
Kakao Mobility runs the Kakao T application, which offers ride-hailing and bike renting services.
The two companies will work together on a pet taxi service, which Kakao Mobility plans to start early next year. Further cooperation will be made through GS Retail’s Box25 service, which allows people to pick up parcels at their nearest GS25 store.
GS Retail said another area of cooperation is its Woodel service, a delivery application in which users can order products sold at GS25 and discount mart GS The Fresh to be delivered within an hour.
In the mid- to long-term, the companies will focus on deliveries using electric vehicles. They will create delivery hubs for the so-called last mile delivery, speeding up deliveries from the last logistics hub to the final destination.
“Kakao Mobility is a leader in the mobility business such as autonomous driving and mobility big data, and we expect the partnership to provide new shopping experiences for our customers,” said Lee Sung-hwa, head of corporate development and corporate venture capital at GS Retail.
GS Group subsidiaries have been closely working with Kakao Mobility. In July, GS Caltex and GS Energy together invested 30 billion won in the mobility firm to acquire 0.73 percent of the company.
BY LEE TAE-HEE [firstname.lastname@example.org]