LUXI.

About LUXI.

LUXI emerged in the South Korean market as a carpooling service provider, incorporated in July 2014 by its CEO, Bada Choi. The company was founded by a team with roots in the mobile content provider 'Danal'. LUXI's core mission was to alleviate the stress of the average 1-hour and 23-minute commute for Korean workers by offering a shared mobility solution.

The company's business model centered on a mobile application that connected private car owners (drivers) with passengers heading in the same direction, primarily during commute hours. This peer-to-peer platform provided a revenue stream for drivers while offering a more comfortable and convenient travel option for passengers compared to crowded public transport. LUXI operated within a specific legal framework in South Korea, which permits carpooling for non-commercial vehicles during designated commuting times. To ensure user safety, the company implemented measures such as driver background verification and an insurance policy for accidents.

LUXI's platform consisted of two distinct mobile applications, one for drivers and another for passengers, available on both iOS and Android. Its service officially launched in the Gangnam district in August 2016, following a series of angel investments and government grants throughout 2014 and 2015. A significant milestone was achieved in August 2017, when Hyundai Motor invested 5 billion won into the startup, partnering on a project to develop a carpool algorithm and system. By early 2018, the platform had amassed over 780,000 members and 200,000 registered cars.

In a strategic move to address high demand during peak hours, Kakao Mobility, the operator of South Korea's largest taxi-hailing app, acquired a 100% stake in LUXI in February 2018 for 25.2 billion won (approximately US$23.4 million). The acquisition aimed to integrate LUXI's carpooling network as a complement to Kakao's existing taxi services, particularly when taxi supply could not meet user demand.