Kakao to launch electric bike-sharing service next year

Kakao Mobility CEO Jung Joo-hwan, left, poses with Samchuly Bicycle CEO Shin Dong-ho after signing a business agreement to launch an electric bike-sharing service. / Courtesy of Kakao Mobility

By Jun Ji-hye

Kakao plans to launch an electric bike-sharing service next year in cooperation with domestic bicycle companies in an effort to address demand from those wanting to travel short- to mid-range distances, the company said Wednesday.

Kakao Mobility signed agreements with Samchuly Bicycle and Alton Sports to create micro mobility in Korea, the company added. Micro mobility refers to new smaller modes of transportation that can be an alternative to more commonplace vehicles.

Kakao Mobility is a Kakao subsidiary formed in August to expand and monetize transportation services through the application Kakao T, which offers taxi-hailing and chauffeurs among others.

Samchuly Bicycle was the nation's first bicycle manufacturer, and Alton Sports is a manufacturer of both bicycles and their components.

Kakao Mobility CEO Jung Joo-hwan, left, poses with Alton Sports CEO Kim Shin-sung after signing a business agreement to launch an electric bike-sharing service. / Courtesy of Kakao Mobility

The three companies will join forces to offer the new mode of transportation that can help decrease traffic congestion.

Kakao Mobility will offer the electric bicycles produced by Samchuly Bicycle and Alton Sports and begin trial services in the first quarter of next year, which will be expanded to cities around the country in the latter half of the year.

Kakao Mobility is currently in talks with various local governments to select locations where it will begin a trial service.

Once it is launched, users will be able to easily travel short and middle distances even if there is no available public transportation, the firm said.

“The beginning of the electric bike-sharing service will be meaningful in that the three companies will create the domestic micro mobility market together,” said Kakao Mobility CEO Jung Joo-hwan. “We will establish a new paradigm of short- and mid-distance mobility.”

The company added that electric bicycles can be used easily by people of all ages.