Poolus

About Poolus

Poolus Inc. was a South Korean startup that provided an on-demand, real-time carpool and ride-sharing service through a mobile application. Founded in 2016 by Jiman Kim, who also founded the car-sharing service 'Socar', Poolus was headquartered in Seoul, South Korea. The company aimed to solve commuting issues by matching riders with drivers heading in a similar direction, offering a service that was reportedly up to 50 percent cheaper than traditional taxis.

The business model was based on taking a commission from the fares paid by riders, which were processed automatically through the app. Poolus gained significant traction, attracting over 750,000 users and securing a notable Series A funding round of 22 billion won (approximately $20 million) from investors including Naver, Mirae Asset, and SK Holdings. This investment was intended to fuel technological development, market expansion, and talent acquisition.

However, the company faced significant challenges related to South Korea's regulatory landscape. The Passenger Transport Service Act prohibits paid driving services using unlicensed private vehicles, with an exception for carpooling during typical commuting hours. Poolus initially operated within these restricted hours but attempted to expand its service availability, which led to severe backlash from the taxi industry and scrutiny from the government. These regulatory hurdles, combined with the financial strain of aggressive marketing campaigns, led to operational difficulties and significant losses. In June 2018, CEO Tae-ho Kim resigned, and the company underwent a major restructuring, including laying off approximately 70% of its workforce. Despite efforts to pivot, including a plan to introduce AI for better matching and a profit-sharing model with drivers, the company's situation worsened. The COVID-19 pandemic and continued opposition from the taxi industry were final blows, leading Poolus to convert to a completely free service in June 2020 before ultimately shutting down in November 2020.