T Map Mobility Co., mobility arm of the country’s top wireless provider SK Telecom, has acquired the middle-mile logistics startup YLP Inc. for an estimated 70-80 billion won or $62-71 million. T Map Mobility aims to expand its smart mobility business into the goods delivery sector with the acquisition.
According to a report, T Map Mobility will acquire a 100% stake in the B2B middle-mile logistics startup. The YLP service is likely to be connected to T Map Mobility’s mobile platform soon. T Map Mobility had recently raised pre-IPO funding of $359 million or 400 billion won from two private equity funds.
YLP offers AI-based logistic services to businesses
YLP, founded in 2016, provides optimal delivery prices and control solutions based on an Artificial Intelligence algorithm for middle-mile logistics. YLP platform matches shippers (company) and borrowers (transporters). The middle mile refers to the section where the company’s cargo moves to the sales site, that is, the stage of moving raw materials or finished products to the warehouse.
YLP’s work involves delivering products from a warehouse, factory, or point-of-origin (seaport or airport) to a fulfilment center or a retail store. It connects shippers with drivers by using its data-based programmed algorithms to match a product delivery with that of the truckers’ schedule, location, and capabilities. Its clients include companies like LG, Coupang, Daewha, and Huxley. Through the service, YLP generated $24 million or 27.7 billion won in revenue last year.
YLP has been promoting innovation in the cargo transportation market by providing real-time control of the optimal unit price and transportation status based on AI algorithms and computerization and automation of manual work.
T Map to enhance existing services and launch more
T Map Mobility wants to bring digital innovation to the middle-mile logistics area and strengthen its B2B capabilities by taking over YLP, a leader in the domestic middle mile logistics sector. YLP’s big data collected over the past five years will help reduce logistics costs and enhance work efficiency. “By improving accessibility and logistics efficiency for shippers, we’re aiming to create more demand and win-win industry ecosystem for existing business owners and related parties,” said an official from T Map Mobility in a media statement.
T Map Mobility plans to use its digital and AI technologies to provide reasonable prices for logistics considering various factors such as destination, time, item, and distance for the shippers. The company will also offer real-time product delivery control and demand projection based on YLP’s records. T Map Mobility is a car navigation platform spun off from SK Telecom in December 2020 and focused on B2C business. Through this acquisition, T Map Mobility plans to launch various innovative services and improve its existing services.
T Map Mobility’s existing businesses include T-Map-based parking, advertising, platform business such as UBI (insurance-linked product), IVI (in-vehicle infotainment system), T-Map auto for ready-to-deliver vehicles such as in-vehicle payment, taxi call, and on-demand mobility, and all-in-one MaaS (Mobility as a service), which offers discounts on various transportation methods through subscription. “We’ll actively seek new business opportunities to scale up the market, as well as upgrading the existing business,” said Lee Jong-ho, CEO of T Map Mobility, during the board meeting held last month.
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The purpose to buy b2b cargo is to facilitate the procurement of goods and services between businesses. It facilitates the discovery, evaluation, and acquisition of goods and services offered by various vendors. The portal also aids businesses in locating suitable partners, suppliers, and vendors to assist them. By simplifying the sourcing process, B2B Market helps businesses save time, money, and resources. It also aids businesses in making educated purchasing choices and securing the lowest available prices.