Ideanomics (NASDAQ: IDEX) (“Ideanomics” or the “Company”) has today announced a strategic partnership with Linghao Zhitong 3000, the leading SaaS platform for shipping and logistics management in China. Under the terms of the agreement, Ideanomics’ Mobile Energy Global (MEG) division will be the exclusive agent for truck purchasing and leasing services to Linghao Zhitong 3000’s growing customer base, which is currently more than 230,000 trucks from over 1,000 fleet operators. Current growth forecasts for Linghao Zhitong extend that number of trucks to 300,000 for 2020 and reaching 500,000 by 2023.
The deal is focused on commercial EV enablement. However, MEG will also provide procurement and leasing services to the long-distance market which EV does not currently support, until such time as charging network infrastructure and/or EV battery technology can support the longer distance truck operators. It will provide these extended services to ensure a complete offering to truck operators who service both short, middle, and long-distance logistics and will utilize both EV and combustion engine in the short-term.
“The commercial fleet market in China has a depreciated truck replacement in the range of between 20% – 30% per year, which means there’s a tremendous amount of cost savings and added value for our MEG division to provide to Linghao Zhitong’s 1000 plus fleet operators,” said Alf Poor, CEO of Ideanomics. “MEG will offer these shipping and logistics fleet operators the best truck for their specific needs, at the best price, with the most competitive lease financing payment terms available in the industry. We are delighted to be working with Linghao Zhitong’s team to extend the range of services available to their fast-growing customer base of commercial fleet operators”.
As part of the agreement, MEG and Linghao Zhitong will explore other business opportunities, including a lease financing consortium, insurance product solutions, fractionalized ownership programs, as well as the potential for a capital markets partnership.