TL;DR:
- Socar collaborates with Naver to introduce a car-sharing service powered by generative AI.
- The service utilizes Naver’s HyperCLOVA X AI platform for voice-activated reservations.
- Naver’s AI recommends vehicle types, pickup locations and calculates service charges.
- Socar aims to attract more users through this partnership, boasting 800,000 monthly active users.
- The company reported an operating profit of 1.6 billion won ($1.2 million) in Q2.
- Socar plans to expand its mobility services portfolio, including parking and electric bicycles.
Main AI News:
In a strategic move to reinforce its dominant position in the local short-term vehicle rental market, South Korea’s mobility platform giant, Socar Inc., has teamed up with web portal titan Naver Corp. to launch an innovative car-sharing service empowered by generative artificial intelligence.
Socar recently introduced a groundbreaking car-sharing recommendation service leveraging HyperCLOVA X, Naver’s hyperscale AI platform, which enables users to effortlessly reserve vehicles using voice commands with AI assistance.
This transformative service is the result of a collaboration agreement inked between the two industry leaders in July. The partnership entails the joint development of an AI-driven mobility service, combining Naver’s extensive language model capabilities with Socar’s wealth of data. With over a decade of experience, Socar operates a fleet of approximately 20,000 vehicles dedicated to car-sharing across South Korea.
A notable aspect of this partnership is Socar’s integration of its car-sharing service with Naver’s conversational AI service, CLOVA X, marking the first time Socar’s offerings have expanded beyond its own proprietary app.
Naver’s advanced AI not only recommends suitable vehicle types and pickup locations but also calculates service charges based on user inputs like destinations, schedules, and the purpose of car-sharing. “The AI identifies users’ intentions and provides answers and options based on Socar’s validated data,” explained a Socar official.
Driving Socar’s Expansion
This collaboration with Naver is poised to deliver substantial user growth for Socar. Currently boasting approximately 800,000 monthly active users (MAU), Socar has more than doubled the user base of its closest competitor, Greencar Co., which has around 300,000 MAU.
Socar’s financial performance also reflects its success, with the company reporting an operating profit of 1.6 billion won ($1.2 million) in the second quarter, marking a 14.6% increase from the previous year. This robust performance correlates with a 14.1% growth in sales, amounting to 103.9 billion won.
As part of its strategic vision, Socar aims to establish further partnerships to expand its portfolio of mobility services, including parking and electric bicycles. While Socar’s primary app has already attracted 9.2 million users, its subsidiary apps for parking lot sharing and electric bicycles have collectively garnered an impressive 4.3 million users.
Socar’s CEO, Park Jaeuk, emphasized their plans to provide car park and e-bike services through external apps, signaling a commitment to further enriching the mobility landscape for consumers. The Socar-Naver partnership represents a pioneering stride in the fusion of AI and car-sharing, promising a brighter and more convenient future for South Korea’s mobility market.
Conclusion:
Socar’s strategic partnership with Naver and the introduction of AI-powered car-sharing represent a significant advancement in the mobility market. With the potential to attract more users, increase profitability, and expand services beyond its proprietary app, Socar is poised for substantial growth and market leadership in South Korea’s short-term vehicle rental industry. This collaboration marks a transformative shift towards AI-driven solutions in the sector, promising greater convenience and innovation for consumers.
