Porsche partners with UP.Labs to establish startups in support of core business

Porsche 911 Cabriolet

Porsche announced its partnership with UP.Labs in its bid to create new business models in various areas of mobility.

KEY TAKEAWAYS

  • How many startups are set to be established under the Porsche-UP.Labs agreement?

    A total of six startup companies are expected to be created under the agreement.
  • How long is the agreed partnership?

    Porsche said that the agreement will be from 2023-2025.
  • In a statement, the Stuttgart-based sports car manufacturer said that the three-year agreement with the US company is aimed to establish six companies from 2023 to 2025, which will revolve around Porsche’s core business.

    The multimillion investment start-ups (which could involve predictive maintenance, supply chain transparency or digital retail), will be minority owned by Porsche “with the option to purchase them entirely after three years.” The development for the first two are already underway and is expected to be founded before the end of 2022.

    Lutz Meschke

    “We want to strengthen our existing, broad-based startup ecosystem with an external growth engine,” Porsche AG Executive Board Deputy Chairman and Member of the Executive Board for Finance and IT Lutz Meschke was quoted as saying.

    “Through UP.Labs, Porsche secures access to international talents and their know-how. The aim is to further enhance Porsche’s position in the current transformation phase of the automotive industry in the long term. Above all, we strive for new sources of innovation.”

    Since 2016, Porsche has been active in identifying and taking stakes in approximately 40 startups with new business models and new technologies. However, the company said that the latest collaboration is different as UP.Labs will work directly with Porsche to develop startups tailored to the automaker’s main business, with Porsche given the option to integrate them into the organization.

    “The concept combines the advantages of free startup development on the market – for example, through the participation of all employees in the company's success – with the direct involvement of our employees and a close link to Porsche,” Meschke explained.

    porsche-emblem

    According to UP.Labs co-founder and Chief Executive Officer John Kuolt, the Los Angeles-based firm has designed a new type of venturing platform that is underpinned in "a new model and incentives structure for capturing all of the agility and innovation of startups alongside the scale and resources of an enterprise."

    Porsche said that the UP.Labs team in the United States consists of proven entrepreneurs, product leaders and technologists with a record of co-developing numerous successful ventures in collaboration with corporate partners.

    Porsche noted that it is UP.Labs’ first integral partner after the latter’s official launch last June 7.

    "As one of the pioneers of sustainable mobility, Porsche is actively searching for new solutions with courage and drive," Meschke shared. "UP.Labs' approach combines Porsche's capabilities with external market incentives to build exciting business models for the benefit of the company."

    Photos from Porsche

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