Porsche aims to establish six companies from 2023 to 2025 in the mobility space alongside UP.Labs.
The collaboration between Porsche and UP.Labs will see the two companies develop startups tailored to the Porsche business and revolving around Porsche’s core activities. All startups will be minority-owned by Porsche and the automaker will have the option to purchase them entirely after three years.
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Work on the first two startups is already underway and both will be founded before the end of 2022. As an example, Porsche says the startups would be involved in predictive maintenance, supply chain transparency, or digital retail.
“We want to strengthen our existing, broad-based startup ecosystem with an external growth engine,” deputy chairman of the executive board of Porsche AG and Member of the Executive Board for Finance and IT, Lutz Meschke said. “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.”
UP.Labs is based in Los Angeles and has a $250 million venture capital fund that will invest in the companies it creates. Its team includes entrepreneurs, product leaders, and technologists. Porsche will serve as UP.Labs’ first integral partner as the companies look to accelerate the future of mobility.
“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,” added Meschke. “As one of the pioneers of sustainable mobility, Porsche is actively searching for new solutions with courage and drive. UP.Labs’ approach combines Porsche’s capabilities with external market incentives to build exciting business models for the benefit of the company.”
