EY & Lalamove team up on Hong Kong drone logistics

EY and Lalamove have signed a memorandum of understanding covering the low-altitude economy and enterprise logistics, with a focus on logistics services in Hong Kong and the Greater Bay Area.

Under the arrangement, the two companies will explore logistics models that combine drone deliveries with ground transport networks for large business customers. The work will focus on designing service offerings, operating models and compliance frameworks for commercial use.

The agreement comes as Hong Kong and the wider Greater Bay Area seek to build an ecosystem around low-altitude aviation. Areas drawing attention include drone services, infrastructure, regulation, certification, insurance, financing and cross-boundary operations.

EY plans to act as an ecosystem integrator, bringing together industry participants and helping companies move from pilot schemes to commercial operations. Its work is expected to include governance, risk management and compliance structures, as well as support on data, artificial intelligence and digital platform strategy.

Founded in Hong Kong, Lalamove brings an existing delivery network and enterprise customer base to the partnership. It operates in 17 markets across Asia, the Americas, Europe, the Middle East and Africa.

Both companies are targeting a segment of logistics that is still in its early stages in Hong Kong. Key barriers include operating model design, governance, compliance, funding and coordination across industries and public bodies.

Regional focus

The companies see the Greater Bay Area as a testing ground for broader regional integration. Their case for the region rests on combining mainland China's industrial capacity with Hong Kong's role in regulation, finance, certification and international connectivity.

That could make cross-boundary operations central to any commercial rollout. Drone-based logistics networks would need not only airspace rules and landing infrastructure, but also insurance arrangements, surveillance systems and communications links.

The agreement also reflects a broader push to define where economic value in the low-altitude economy will sit. EY identified three layers: drone-enabled service applications, infrastructure enablement and institutional establishment.

Those categories suggest the market will extend beyond aircraft operators or delivery firms. Insurers, financiers, certifiers, software providers and public agencies are also likely to play a part if projects move beyond trials.

Jack Chan, EY China Chairman and Greater China Regional Managing Partner, outlined how the firm views the opportunity.

"For EY, this collaboration is not simply about participating in a new industry. It is about helping shape the next wave of economic transformation, where technology, infrastructure, regulation and capital come together to create sustainable growth and long-term value," Chan said.

For Lalamove, the project extends its effort to broaden the logistics services it offers business customers. Combining drone and ground networks could support more complex delivery chains than traditional point-to-point services.

"Through our collaboration with EY, Lalamove is helping enterprises navigate today's fast-changing business environment and increasingly complex supply chains. By combining our extensive logistics network and technology, we offer customized delivery solutions that go beyond traditional point-to-point fulfillment. This enables enterprises to achieve greater flexibility and scalability, while our automated workflows and seamless integrations enable better efficiency and allow them to focus on growth. To unlock transformative growth for enterprises, we are pioneering low-altitude economy solutions in Hong Kong and aim to expand across international markets. By integrating drone-enabled deliveries with our ground networks, we are creating a seamless, multi-dimensional instant logistics ecosystem that opens new horizons for global business," Loo said.

Commercial hurdles

While the companies pointed to commercial potential, they also acknowledged the sector's practical constraints. Hong Kong's low-altitude economy remains at an early stage, and commercial models are still being defined.

Questions remain over how quickly regulators will permit broader commercial drone operations, how flight corridors and landing points will be allocated, and how public and private operators will share responsibility for oversight. Businesses will also need to show that drone services can be reliable and economically viable in dense urban areas.

Steve Lo, EY2 Greater China Alliances and Ecosystems Leader, said the challenge will be turning technical progress into workable business applications.

"The low-altitude economy will continue to evolve, and its role within the broader economy will become more clearly defined. What will matter is how effectively innovation can be translated into practical, reliable, and commercially viable applications - supported by strong frameworks and coordinated stakeholders," Lo said.