Hyundai and LUXI deepen collaboration in Project Ioniq

Hyundai Motor Company deepens collaboration with LUXI. The auto maker giant headquartered in Seoul on Tuesday announced it will expand its car-sharing business with local startups. The collaborative project also aims for research and development as part of Project Ioniq.

Hyundai has invested 5 billion won (US$4.6 million) in Luxi in August and plans to work together in developing algorithms and carpooling platforms to seek new business opportunities. Luxi, founded in 2015, already has 200,000 cars, 780,000 members and about 4 million trips.

Tinuku Hyundai and LUXI deepen collaboration in Project Ioniq

Hyundai joins other global car makers such as BMW, Mercedes-Benz, GM and Volkswagen who have started a highly profitable car-sharing service in the future. Car makers also benefit from direct feedback from customers about cars or new technologies.

McKinsey reports the number of new vehicles purchased worldwide will fall by 4 million units annually, while vehicles used for carpooling will increase by 2 million units by 2030. Samjong KPMG Economic Research Institute predicts the Korean ridesharing market will grow 500 billion won by 2020.

Hyundai said the collaboration with LUXI includes launching a carpooling program for 100 customers who rented Ioniq hybrid. The platform is designed to match users based on Blue Link installed on Ioniq to analyze driver patterns.

Hyundai Motor first entered the ride-sharing business in April 2016 in collaboration with Green Car. The company also said it would accelerate the development of future technologies such as RobotCab and logistics delivery services using autonomous vehicles.