SKT joins hands with Uber to target domestic mobility market

South Korean mobile carrier SK Telecom has clarified its ambitious vision on the domestic mobility market in collaboration with U.S. car-sharing service provider Uber Technologies Inc. A joint venture led by the two tech companies will launch a subscription-based package with various kinds of mobility services such as vehicles for hire and designated driving put together in it. Taking a longer-term view, SK Telecom will seek to differentiate from its competitors by making a “flying car” project a reality. 　

South Korea’s dominant telecommunications provider decided in a meeting of its board of directors on Thursday afternoon to form a joint venture dedicated to mobility service while confirm‎ing that Uber will invest 150 million dollars in the project according to its announcement on Friday.

SK Telecom plans to found a new business on Dec. 29, tentatively named T map Mobility Inc., that includes the company's existing mobility division in charge of T map and T map Taxi. Uber will acquire five to six percent of shares with an investment of 50 million dollars in the new JV. 　

The ultimate goal of T map Mobility Inc. is to equip all kinds of vehicles across the nation with T map. The new JV seeks to broaden the horizons of T map by developing various services such as parking, ads, insurance-related products and in-vehicle payment. Furthermore, a subscription-based discount system will encompass car rentals, vehicle-sharing, taxis for hire, motorized scooters, bicycles, designated driving and parking to provide users with discount benefits.

T map Mobility Inc. aims to earn 600 billion won in sales and increase its corporate value to 4.5 trillion won by 2025.


yes@donga.com