Tech & Gadgets socar

Socar's 'Socar 2.0' Strategy Boosts Car-Sharing Revenue

by Philip Lee

Updated February 22, 2024

Socar's 'Socar 2.0' Strategy Boosts Car-Sharing Revenue — Source: Socar, Inc.

Seoul, South Korea - Socar (KRX: 403550) reported a steady increase in car-sharing revenue in its fourth quarter results, supported by the continued rollout of its "Socar 2.0" strategy.

The company's quarterly revenue in this segment reached KRW 89.1 billion (US$66.8 million), representing a year-on-year growth of 22.2%.

The focus on maximizing vehicle lifetime value is paying off. Socar increased the number of vehicles in its monthly rental "Socar Plans" fleet by 3.7 times to 4,670 cars.

This shift to longer-term rentals has improved the utilization and profitability of the short-term car-sharing fleet.

Importantly, these changes led to a 102.6% increase in the platform's transaction value compared to the previous year.

However, the strategic adjustments resulted in a temporary decline in total revenue, which decreased by 20.8% to KRW 96.2 billion (US$ 72.1 million).

This was mainly due to a calculated decline in used car sales, a crucial part of the Socar 2.0 approach.

The focus is now on extracting maximum value from vehicles throughout their lifetime.

Socar's management remains optimistic about the future, citing plans to expand its reach through platform partnerships, launch new services such as "SocarAir" for airport travel, and target the growing expatriate market in South Korea.

The company remains committed to making its monthly rental "Socar Plans" a key pillar, coupled with continued innovation on its technology-driven platform.