Poolus attracts investment from Naver, SK

The Korea Times

The Korea Times

Business

Tue, September 26, 2023 | 08:55

Companies

Poolus attracts investment from Naver, SK

Posted : 2017-10-31 19:16

Updated : 2017-10-31 19:17

Images of ride-sharing app Poolus

By Lee Hyo-sik

Korea's first ride-sharing app Poolus has attracted 22 billion won ($20 million) in investments from Naver, Mirae Asset, SK and other investors as it expands its services across the country.

The startup, founded in May 2016, said the latest investments will help finance its expanding operations and further solidify its leadership in the newly-emerging market.

The investors include a joint venture fund set up by Naver and Mirae Asset, SK Holdings, and venture capitalists YellowDog and Collaborative Fund. Poolus did not disclose the amounts of money each entity invested.

"This investment from Naver, SK and others clearly show that corporate leaders highly recognize our growth potential," Poolus CEO Kim Tae-ho said. "We will use the money to attract more ride-sharing users and improve customer services. We will also hire more talented workers to develop and introduce more innovative services."

The company will work harder to prove the value of its carpool service as an innovative approach toward easing traffic congestion and protecting the environment, Kim said.

"The ride-sharing market has been around little more than a year in Korea, but it has been growing at an explosive pace," He said. "Poolus aims to provide easily accessible on-demand mobility. We believe the development of driverless and connected vehicles will further bolster demand for ride-sharing services."

Poolus matches registered drivers with riders that are heading in a similar direction. It could be a one-on-one match but also a one-to-three or four-match like in a carpool service. Registered drivers pick up riders in their own cars.

The company said it is about 30 percent cheaper to use its carpool service than taking a taxi because riders pay rates only by travel distance, given that taxi fares are set by both travel distance and time. Drivers get paid in accordance with vehicles' mileage.

The startup, which began the service in Pangyo, Gyeonggi Province, has extended its operations nationwide over the past year. As of September, it had 750,000 regular subscribers and matched more than 3.7 million rides.

"It is important for us to collect and analyze big data to offer more efficient ride-sharing services. So we set up a big data center to analyze commuting patterns and other driver behaviors," the CEO said. "When we have enough data, we will be able to offer more efficient services at lower costs."

In May, SK Holdings acquired a 20 percent stake in Poolus. The holding company of SK Group also purchased a 20 percent stake in Socar, Korea's first car-sharing startup, for 59 billion won in November 2015.

leehs@ktimes.com