DENSO Corporation and Global Mobility Service (GMS) recently commenced field testing of a new transport service incorporating small refrigerated parcels to deliver fresh food and other products in Indonesia.
In the field test, which the companies said started in October, 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.
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, DENSO said. 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, DENSO took an additional stake to develop and expand the business for CVs in emerging countries. The company said it 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.