Denso and Global Mobility Service (GMS) are to start field testing a new transport service incorporating small refrigerated parcels to deliver fresh food and other products to commercial facilities and households in Indonesia.

In the test, Denso and GMS aim to build a cold chain logistics network in the country, as well as identify and solve potential issues in establishing a new commercial business model for the future.

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In South East 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.

Refrigerated trucks equipped with Denso’s small freezer will be lent to drivers, who 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 delivery jobs for those who do not have enough income to take out a loan for a truck.

In March, 2017, Denso took its first stake in GMS to verify the development potential of the mobility IoT business. In August 2019, Denso took an additional stake to develop and expand the business for commercial vehicles in emerging countries.

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As a global start-up from Japan specialising in financial inclusion business, GMS conducts business in Japan and other countries in South East Asia.