Micro Mobility startups in South Korea are actively trying to attract investments from venture capitalists.
While the other micro-mobility startups worldwide are in trouble, the situation is the opposite. Why is this happening?
Last month the Ministry of Interior and the National Police Agency of South Korea proposed an amended bill for the Road Traffic Act.
Before the revised Road Traffic Act, electric scooters were treated the same as motorcycles. In addition, if someone wants to drive electric scooters, one should have a driver’s license and be over 16.
However, after the revision, electric scooters will be treated as bicycles, and citizens over 13 can drive electric scooters without a driver’s license.
The total length of the bicycle road is 940.6km (584.5 Miles) in Seoul only.
Most mobility startups have stopped or changed their business model because of the regulation.
However, the government’s revision of the law encourages investment in micro-mobility startups.
This is according to a report by Seoul Economic Daily,
(Operating Kickgoing) is now working to raise KRW 5 billion (USD 4.2 million) in Series B funding with a valuation of KRW 30 billion (USD 25 million).
It is being mentioned by the source from Investment Bank that they are under negotiation with financial investors.
Olulo is operating 6,000 electric scooters in Seoul and shall expand to 10,000.
PUMP (Operating Xingxing) is now working on a series B investment.
PUMP received a staggered KRW 4 billion (USD 3.3 million) Series A investment from SK in November 2019 at a valuation of KRW 30 billion (USD 25 million).
This brings the discussed valuation of PUMP to around KRW 100 billion (USD 83 million). The company currently operates 7,900 electric scooters in Seoul.
Is the future bright for micro-mobility startups in South Korea?
Around 20 micro-mobility startups are working with electric scooters in South Korea. In other countries, micro-mobility startups grew faster than Uber or Lyft. Profit was the issue.
Seoul has a safer and more stable road infrastructure. The Chicken game.
Furthermore, traffic accidents from electric scooters have increased from 49 cases in 2016 to 890 cases in 2019 to the Samsung Traffic Safety Research Institute report.
As a result, the personal mobility insurance product is now under discussion with the first TFT among insurance companies, startups, and the government.