South Korea’s leading car-sharing service provider, SoCar, launched a corporate car rental program SoCar Business Plan on Monday with a minimum contract period of one month to attract stronger demand from businesses before it is made public on the Kospi stock exchange.
According to SoCar, employees of member companies can use a contactless car with the car rental service using the smartphone app. Administrators can also manage car usage record, fuel bills and road toll charges both with an automated management system and vehicle repair and maintenance with SoCar’s regular visit service .
Recently, major conglomerates, local governments and public institutions have reduced the number of cars they own for business purposes amid delays in new car deliveries due to prolonged chip shortages and ESG dynamics worldwide.
SoCar expects the move to help its professional car rental program become a new engine of growth. It ran the program ahead of official launch to reflect business and government demand with a fleet of 200 cars.
With its B2B product SoCar Business, the company has supplied around 2,000 cars every week with its management skills and know-how for a large fleet since the launch in 2019.
SoCar in August becomes the first unicorn company in Korea to go public on the Kospi by offering 4.55 million initial shares in the 34,000-45,000 won ($35.07) bracket. At the highest price, the new shares will reach a market capitalization of 204.8 billion won.
Pricing bookbuilding is scheduled for August 1-2, and retail investors will be invited to subscribe to the new shares on August 8-9.
Founded in 2011, SoCar quickly grew its car-sharing business to hold a 70% market share in Korea. It has secured a fleet of 18,000 vehicles with 4,200 SoCar zones for car pick-up and drop-off. As of May, about 8 million users were registered with its service in Korea, nearly a quarter of the total population with driving licenses.
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]