Arrow Electronics Helps Startup Oyika Establish Electric Motorbike Ecosystem
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- The PR does not provide specific financial or clinical data, making it challenging to assess the direct impact on the company's financial performance or the success of the battery charging stations. The expansion plans in multiple Southeast Asian countries may present logistical and operational challenges for Oyika, with potential regulatory and market-specific hurdles to overcome.
Arrow Electronics' partnership with Oyika to deploy battery charging stations in Southeast Asia is a strategic move that taps into the growing demand for electric vehicles (EVs), specifically electric motorbikes in the region. This initiative aligns with the increasing global trend towards electrification of transport as a means to reduce carbon emissions and improve air quality. The fact that nearly 90 percent of families in Southeast Asia own at least one motorbike suggests a significant market opportunity for Oyika's battery swapping model.
The collaboration points to a potential increase in demand for Arrow's electronic components, given their involvement in design engineering, power management and IoT telematics for the smart battery system. This could lead to an uptick in Arrow's revenue streams from these services. Additionally, the partnership with a technology university for the NTU-Arrow Invent Lab indicates a commitment to innovation, which may enhance Arrow's reputation as a leader in technological solutions for sustainability.
From a market perspective, Oyika's approach to battery swapping rather than recharging aligns with consumer behavior, potentially accelerating the adoption rate of electric motorbikes. If successful, this could set a precedent for other regions facing similar urban pollution challenges, opening up further markets for Arrow and Oyika.
Oyika's initiative to replace petroleum-powered motorbikes with electric alternatives, supported by Arrow Electronics, directly contributes to environmental sustainability efforts. The impact on urban air quality could be substantial, given the high ownership of motorbikes in Southeast Asia and the significant emissions they produce compared to automobiles. By addressing one of the primary barriers to EV adoption—the time required to recharge—through a smart battery exchange system, Oyika may significantly reduce the friction of transitioning to cleaner energy sources.
The alignment with the United Nations's sustainability goals enhances the social responsibility profile of both Oyika and Arrow. Investors with a focus on Environmental, Social and Governance (ESG) criteria may find this partnership particularly attractive, potentially influencing investment decisions. The long-term benefits could include not only improved public health outcomes due to better air quality but also contributions to the fight against climate change through reduced greenhouse gas emissions.
However, the scalability of this model and its economic viability will be critical factors in determining its success. The initial testing phase in Thailand, Cambodia and Malaysia, followed by expansion plans, will provide valuable data on the adaptability of this model in diverse markets with varying infrastructure and consumer behaviors.
Arrow Electronics' engagement in the development and rollout of smart battery exchange systems has potential financial implications for both Arrow and Oyika. For Arrow, the diversification into EV technology services could hedge against volatility in its traditional markets. The costs associated with R&D and initial deployment will affect short-term financials, but if the adoption rate of electric motorbikes meets projections, the long-term revenue generation could be significant.
Oyika's business model, offering batteries-as-a-service, represents a recurring revenue stream that could appeal to investors seeking stable, long-term returns. The success of this model in Southeast Asia—a region with high motorbike usage—could serve as a blueprint for replication in other emerging markets, suggesting potential for scalability and growth.
It will be important to monitor the unit economics of the battery swapping stations and the rate of adoption among consumers. If the cost savings and convenience of battery swapping are clear, this could drive a rapid shift in consumer behavior, benefiting both Oyika and Arrow Electronics. However, the capital expenditure required for widespread station deployment must be weighed against the expected lifetime value of each customer to assess the financial viability of the project.
SINGAPORE / ACCESSWIRE / January 11, 2024 / Arrow Electronics is helping technology startup Oyika roll out battery charging stations in Southeast Asia cities to support a new generation of clean and quiet electric motorbikes.
The switch from petroleum-fueled motorbikes to battery power can be a significant step towards improving urban air quality in the region. Nearly 90 percent of families own at least one motorbike. And without pollution controls, a motorbike's small inefficient engine generates tailpipe emissions equal to ten automobiles.
Air pollution is associated with elevated levels of cardiovascular and respiratory disease as well as long-term effects of climate change.
But replacing tens of millions of petroleum-powered motorbikes is a daunting task. Oyika's founders identified the hours needed to recharge electric vehicles as one of the primary barriers to switching to battery power.
With Arrow's help, Oyika has developed a smart battery exchange system at convenience stores. It is managed with a mobile app.
"Battery swapping essentially mimics the user behavior of combustion technology," said Roderick Chia, Oyika's chief technology officer. "Swapping out batteries is very much like refilling a fuel tank. It takes a minute or two."
Arrow is working on several aspects of Oyika's integrated solution, including design engineering for the new smart battery and power management, 4G IoT telematics, component sourcing, smart battery monitoring, and GPS-enabled security and safety.
Oyika meets regularly at the NTU-Arrow Invent Lab in Singapore. The lab was established in 2022 in collaboration with Nanyang Technological University. Oyika is testing battery stations in Thailand, Cambodia, and Malaysia, with expansion plans in Indonesia, Vietnam, and other motorbike markets.
Oyika has aligned its battery-as-a-service business to five of the United Nations's sustainability goals, including climate action, affordable and clean energy, good health and well-being, gender equality and reduced inequalities.
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