[Alpha Biz= Paul Lee] SoCar’s shared electric bicycle business has become a financial burden, remaining unprofitable despite substantial capital injections, while the company’s overall financial health continues to deteriorate. With no signs of improvement and SoCar refocusing on its core car-sharing operations, the shared bike business is merely sustaining operations.
According to industry sources on December 31, SoCar’s e-bike brand “Illec” is operated by its subsidiary NineToOne, which recently conducted a paid-in capital increase of 183 million shares at KRW 100 per share, raising KRW 18.3 billion (~USD 13.8 million) to address capital erosion and improve finances. The new shares convert previously loaned funds from SoCar, meaning there is no actual cash outflow.
Since fully acquiring NineToOne in late 2021 to expand its personal mobility platform, SoCar has invested over KRW 50 billion into the subsidiary. Annual support exceeded KRW 10 billion each year, with KRW 18 billion loaned in the first half of 2025 alone.
Despite this support, NineToOne’s e-bike operations remain unprofitable, with net losses of KRW 580 million in 2022, KRW 1.9 billion in 2023, KRW 5 billion last year, and around KRW 7 billion in the first half of 2025, leaving the subsidiary in a state of capital erosion.
The business’s poor performance is attributed to fierce competition in the shared e-bike market, stricter regulations, and high depreciation costs from operating over 50,000 bicycles. SoCar even considered merging NineToOne to cut labor and operating costs but quickly withdrew the plan, reflecting ongoing strategic uncertainty.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
