First Domestic Mobility Company
Proven Corporate Value Over 1 Trillion KRW
Cumulative Investment Amount of 330 Billion KRW
[Asia Economy Reporter Buaeri] Car-sharing company Socar has become the first domestic mobility company to achieve unicorn status with a corporate valuation exceeding 1 trillion KRW.
On the 16th, Socar announced, "We have secured a total investment of 60 billion KRW from SG PE and Songhyun Investment, and have been recognized as a unicorn company (a private company valued at over 1 trillion KRW)." To date, Socar's cumulative investment amount has reached approximately 330 billion KRW.
Socar joined the unicorn ranks nine years after launching its service in 2011 with 100 vehicles in Jeju Island. Although it faced challenges last year when VCNC discontinued 'Tada Basic' following the passage of the Passenger Transport Service Act amendment, known as the 'Tada Ban Law,' this recent investment has laid the foundation for a new leap forward. Currently, Socar's fleet has expanded to 12,000 vehicles, and its membership has reached 6 million. Its revenue has also shown annual growth, recording 121.1 billion KRW in 2017, 159.4 billion KRW in 2018, and 256.6 billion KRW last year.
The franchise taxi market is expanding as large corporations enter one after another. Following Kakao Mobility, the US mobility company Uber, which is partnering with SK Telecom, is also considering entering the domestic market. In this environment, with Socar receiving large-scale investment, competition in the franchise taxi sector is expected to intensify. Socar anticipates that this investment will serve as an opportunity to innovate the domestic mobility market through various services based on artificial intelligence (AI) and big data technologies. Socar plans to use the secured investment funds to develop various services and technologies that allow users to utilize mobility services more conveniently and safely, as well as to attract talent.
Park Jae-wook, CEO of Socar, stated, "Through this investment, we have been recognized for the sustainable growth of Socar's car-sharing business, expectations for new mobility services, and our capabilities to grow despite the COVID-19 pandemic. We will spare no effort to secure technology for strengthening competitiveness, enhance services, and recruit talent."
Meanwhile, Socar's subsidiary VCNC is seeking new business opportunities even after discontinuing 'Tada Basic.' VCNC plans to officially launch new services within the year, including the franchise taxi service 'Tada Light' and the designated driver brokerage service 'Tada Daeri.'
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