Socar, South Korea’s largest car-sharing company, reports strong first-quarter results

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Socar, a South Korean-based mobility platform, announced that its first-quarter revenue was KRW 85.7 billion, up 26% from the same period last year. Operating loss for the same period was KRW 49 billion, down 41% from KRW 85 billion last year. The operating profit margin as a percentage of sales was -5.8%, up 6.7 percentage points from a year ago.

Revenue from its subsidiaries, including shared electric bicycles and platform parking services, grew 273% from KRW 17 billion in the first quarter of last year to KRW 63 billion this year. Revenue from the shared electric bicycle service ‘Elecle’ grew 546% year-on-year to KRW 48 billion, and platform parking service ‘Modu Parking’ saw its revenue grow 46% year-on-year to KRW 50 million.

Socar explained that the high growth was driven by the expansion of loyal customers, such as the increase in the number of customers aged 30 and over who have purchasing power, even in the structural off-season of the car sharing market, and the cumulative number of subscribers to the mobility membership passport has exceeded 400,000.

The average age of Socar users rose from 29.1 in 2018 to 32.9 in the first quarter of this year, and the proportion of members in their 30s and 40s reached 53%. In particular, the proportion of high-end car models such as mid-size sedans, mid-size SUVs, and electric vehicles used by 40-year-old members was more than four times that of 2030s. The revenue per car for Socar in the first quarter of this year was KRW 168 million, up 23% from a year ago.

Growth as a mobility platform that combines KTX usage with car sharing is being reflected in performance. The car sharing and KTX combination product launched at the end of last year accounted for 7% of Socar’s total bookings in the first quarter, and 40% of KTX-related Socar zone usage was for combination products.

Socar Plan, which targets users who are burdened with the cost of purchasing and transportation due to rising interest rates and taxi fare increases, also doubled its number of contracts in the first quarter. In addition, the launch of a dedicated product for office workers and aggressive marketing contributed to the increase in sales. In the second quarter, it will embark on aggressive investment to lay the foundation for mid- to long-term growth, including the construction of a travel platform, the purchase of new car plans, and aggressive marketing.

Socar plans to grow rapidly as a platform by providing a variety of products before and after car sharing, such as accommodation and activities. In the second quarter, it will officially launch a new service that combines car sharing with accommodation at major hotels nationwide. On the Socar platform, you can use a variety of products such as car sharing, KTX, accommodation, and activities all in one place. Socar plans to increase convenience for users and provide various discounts.

Socar plans to expand Socar Plan, which targets consumers who use cars for more than a month, focusing on new cars. Socar expects that Socar Plan, which is innovative in user-centered use experience (UX) and offers economical and reliable products, will be a trigger for quickly replacing car ownership with car sharing.

Socar CEO Park Jae-wook said, “We will make a big leap in growth from the second half of this year by boldly and aggressively investing in new services, expanding new car plans, and marketing to acquire users.”

[Startup News in Korea]

1Q 2023 car sharing earnings EN Korea Mobility socar

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Socar, South Korea’s largest car-sharing company, reports strong first-quarter results

버섯돌이(Taehyun Kim)

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Socar, South Korea’s largest car-sharing company, reports strong first-quarter results