EY advances low-altitude economy ecosystem through MoU with Lalamove

The low-altitude economy (LAE) is rapidly gaining momentum globally, reshaping urban logistics and supply chain management. EY¹ is committed to accelerating the development of a robust LAE ecosystem by bringing together key industry stakeholders, fostering cross-sector innovative collaboration and supporting enterprises in transforming pilot initiatives into scalable and sustainable business models. EY² and Lalamove have signed a Memorandum of Understanding (MoU) to advance innovations in the LAE and enterprise logistics, exploring next-generation logistics solutions to drive long-term market value and efficiency.

Jack Chan, EY China Chairman and Greater China Regional Managing Partner, says: “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.”

Under the MoU, EY and Lalamove have agreed to collaborate on the conceptualization and advancement of a next-frontier enterprise logistics service offering. This will combine their complementary strengths to deliver intelligent, scalable, resilient and compliant logistics solutions for large enterprise customers.

Paul Loo, Lalamove Chief Operating Officer, says: “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.”

Hong Kong’s LAE ecosystem is still at an early stage, with key challenges including operating model design, governance and compliance, risk management, funding and cross-sector coordination. The development of LAE is a multi-party ecosystem play. EY acts as an ecosystem integrator, bringing together industry stakeholders to help identify and prioritize high-value use cases and turn pilot initiatives into commercially viable businesses. EY also supports the design of governance, risk management and compliance frameworks to enhance the credibility of LAE programs with regulators and investors. In addition, EY assists clients in designing data, AI and digital-platform strategies, enabling the comprehensive commercialization and expansion of their LAE business models.

The potential economic value of the LAE ecosystem primarily sits across three major layers: drone-enabled service applications, infrastructure enablement and institutional establishment. Hong Kong should capitalize on its strengths and focus on high-value segments within the ecosystem, including regulation and policymaking, certification, insurance, financing, testing and cross-boundary operations. For the Guangdong-Hong Kong-Macao Greater Bay Area (GBA), the bigger opportunity lies in integrating the industrial strengths of mainland cities with Hong Kong’s roles as an international “super-connector” and “super value-adder” to build a competitive, integrated regional cluster.

Looking ahead over the next five years, the LAE in Hong Kong and the GBA is expected to evolve from a government-led pilot phase into an early commercial stage. Initial development will be driven by the widespread adoption of drones across use cases such as logistics, inspection and public services, while cross-boundary operations and selected electric vertical takeoff and landing passenger use cases emerge gradually.

By 2031, Hong Kong is expected to establish clearer low-altitude flight corridors, designated take-off and landing points and more sophisticated surveillance and communications layers. At the same time, regulations governing commercial drone operations are likely to become more flexible, supporting the scalable development of the industry.

Steve Lo, EY² Greater China Alliances and Ecosystems Leader, says: “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.”

1. EY member firms in Hong Kong
2. Ernst & Young Group Limited

-Ends-

EY | Building a better working world

EY is building a better working world by creating new value for clients, people, society and the planet, while building trust in capital markets.

Enabled by data, AI and advanced technology, EY teams help clients shape the future with confidence and develop answers for the most pressing issues of today and tomorrow.

EY teams work across a full spectrum of services in assurance, consulting, tax, strategy and transactions. Fueled by sector insights, a globally connected, multi-disciplinary network and diverse ecosystem partners, EY teams can provide services in more than 150 countries and territories.

All in to shape the future with confidence.

EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients, nor does it own or control any member firm or act as the headquarters of any member firm. Information about how EY collects and uses personal data and a description of the rights individuals have under data protection legislation are available via ey.com/privacy. EY member firms do not practice law where prohibited by local laws. For more information about our organization, please visit ey.com.