Malaysian tech startup Pixelbyte found itself an interesting new investor. Gas-giant Shell acquired a 50 percent stake in the firm which is best known for ParkEasy, a mobile application that manages parking among other things. The app will continue to operate under its existing management and name.
ParkEasy began life as a parking reservation platform but has expanded into several other areas, including EV charging bay management systems, over the past three years. It is currently the only company in Malaysia taking reservations for EV charging slots.
On the surface, it may seem odd for Shell to invest in a Malaysian tech startup focused on parking and EV reservations. However, the company looks at the situation as an opportunity to expand its offerings while working towards existing goals.
“Decarbonizing mobility and enabling better services to our customers through digital innovation are core to our ‘Powering Progress’ strategy,” Shell General Manager (Mobility) Seow Lee Ming explained. “We intend to make investments that will help us serve our customers better through the energy transition and pressures of modern living. We value this opportunity to partner with a young Malaysian startup and believe our combined strength will help us develop superior mobility products and services for our customers.”
The deal is expected to be completed sometime in the third quarter. Terms of the agreement have not been disclosed.
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Interesting Analysis
While there is some synergy between Shell and this Malaysian tech startup, the deal probably isn’t about money for the oil and gas outfit. At first glance, this looks similar to deals seen in the automotive sector over the past decade. Think General Motors investing in rideshare-app Lyft or Mercedes-Benz acquiring FlightCar.
Ultimately, the investment will allow Shell to learn about the technology with an eye on how it can possibly be used at gas stations or as part of a new retail model. Disruption is on the horizon for the gas retail business with more people buying EVs. The move for ParkEasy is an attempt to stave that off more than anything else.
