South Korean companies Kia Motors and Kakao Mobility signed a memorandum of understanding promoting the expansion of eco-friendly electric taxis. The two companies signed the business agreement at a Kia headquarter in Apgujeong-dong, Seoul.
Under the deal, Kia’s electric automobile technology and Kakao’s transportation services will work jointly to further develop the taxi industry. The two companies are expecting the deal to improve the adoption and distribution of electric vehicles within the car-hailing business.
Both companies plan to provide solutions towards better transportation systems for the convenience of operators and customers. Kia’s central project is to supply electric vehicles and car technology, as well as maintenance support, charging stations, and battery warranty. On the other hand, Kakao’s main role is to provide a platform-based mobility system and other related infrastructures.
In line with the increasing sustainable business operation regulations, the agreement targets to reduce greenhouse gas emissions. Both companies also seek to enhance the procedure regarding the selection, purchase, usage, and charging of electric taxis.
“Electric cars not only contribute to reducing carbon emissions but also offer an improved mobility service both for drivers and passengers,” said Ahn Kyu-jin, Kakao Mobility’s executive director. “We hope that this partnership lays the basis for eco-friendly mobility services here.”
For their long-term plans, the two companies will conduct joint operations for developing the electric Purpose Built Vehicle (PBV) model. The PBV will represent eco-friendly mobility technology and innovations in the taxi industry.
Kia’s rebranding
“The partnership with Kakao Mobility will contribute to Kia’s mid and long-term vision Plan S, which pivots on electric vehicle business expansion,” said Kwon Hyuk-ho, Kia’s Vice President for domestic business. “We intend to use the electric vehicle-based mobility service field as a growth momentum.”
Earlier this January, Kia showcased a new logo and slogan as part of their brand relaunching. They are planning to boost the company’s identity not just as an automobile manufacturer, but also as a clean-mobility provider.
Kia’s rebranding coincides with their Plan S, which is their business strategy focusing on marketing electric vehicles. In addition, Kia will be launching a flagship SUV this year under the Electric Global Modular Platform.
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