kakao

Kakao Mobility, a mobility business spin-off of mobile service provider Kakao, has announced the acquisition of local carpool startup Luxi for 25.2 billion won (US$23.4 million).

Founded in 2016, Luxi is one of the major carpool services in Korea. Last year, the startup raised 5 billion won (US$470,000) in investment from Hyundai Motors.

Kakao Mobility said in a statement that it plans to use Luxi’s ride-sharing service during times of high demand for taxis. As per the statement, it received 230,000 calls from customers between 8am and 9am on December 18 last year, but the number of taxis available at that time was 26,000.

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Kakao plans to run the carpool service to compensate for the taxi inconsistencies and user inconveniences.

“Luxi is a partner who understands the vision of Kakao Mobility,” said Kakao CEO Jeong Ju-hwan. “We are committed to the sustainable growth of the company and its employees.”

Meanwhile, Kakao is preparing a variety of strategies for its continued growth of its mobility platform, Cacao T. In addition to its taxi service, agency driving, parking and navigation, the company is also planning to foray into other areas.

Kakao Mobility provides online taxi-hailing and parking services. Its brands include Kakao Taxi, Kakao Driver, and Kakao Navi.