Kakao makes foray into car-sharing market through acquisition of No. 3 service operator

Park Sae-jin Reporter() | Posted : March 18, 2021, 15:32 | Updated : March 18, 2021, 15:32

[Courtesy of Kakao T]

SEOUL -- The mobility service wing of South Korea's web service giant Kakao made a foray into the rapidly growing car-sharing market by acquiring a car-sharing mobility service company that has delivered rent cars to the doorstep of customers. Cars were retrieved when customers finished using them while other car-sharing services require customers to pick up and return cars to designated places.

Kakao Mobility said in a statement on March 18 that the company would acquire Delivery Car from Hyundai Capital, the financial wing of South Korea's Hyundai's auto group, for about eight billion won ($7.1 million).

Kakao T, a one-stop mobility service app, is Kakao Mobility's main service channel that offers a designated driver service, a taxi-hailing service, a car park reservation service, and a public transport information service. There were about 5.8 million Kakao T monthly users in 2020.

Unlike conventional rent-a-car services, car-sharing services target young customers who only need to borrow cars for a short time. New services mainly charged customers by the distance they drove and payments are made through dedicated smartphone apps. Socar and Greencar have stations located nearby scenic landmarks and public transport facilities so that customers can pick up cars without waiting.
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