KooRoo, a company-in-company (CIC) under LG Energy Solution, is officially starting its business.
KooRoo announced on the 5th that it is now actively promoting its Battery Swapping Station (BSS) service for electric motorcycles.
KooRoo offers a service that allows users to easily swap out depleted batteries for fully charged ones, rather than charging them. This service has garnered significant attention from delivery riders due to its convenience and the substantial reduction in operational costs compared to regular motorcycles.
Since the pilot operation that began at the end of last year, KooRoo has been running a joint experience program with delivery platforms such as Woowa Brothers, Yogiyo, motorcycle management solutions provider Onus, and Toyota. About 70% of participants have expressed interest in converting to paid memberships, indicating its popularity.
Riders participating in the program have commented, “Electric motorcycles are much quieter, making nighttime deliveries easier, and with less exhaust, it feels more comfortable,” “The battery swapping stations are conveniently located, and swapping the batteries is easy, resulting in almost no fatigue,” and “The maintenance costs are much cheaper than regular motorcycles, increasing profitability.”
The biggest advantage of using the BSS for electric motorcycles is its ‘cost-effectiveness.’
The maintenance costs for electric motorcycles utilizing BSS are about half that of conventional motorcycles. Assuming a rider travels 125km in a day, the monthly costs for a regular motorcycle, including fuel and insurance, would be around ₩470,000. However, by using KooRoo’s unlimited monthly plan for ₩110,000, that cost is reduced to about ₩230,000, more than halving expenses.
KooRoo representatives stated, “To celebrate the official launch of the business, we are planning various discount events so that delivery riders can use the service at a lower cost.” KooRoo has partnered with electric motorcycle manufacturer Daedong Mobility to offer an early bird discount event for up to ₩1.3 million, starting from March 4, on a first-come, first-served basis.
Furthermore, user convenience has been significantly enhanced. Users can check the congestion levels at battery swapping stations via a mobile app before visiting or can reserve a battery for swapping in advance. Navigation can also be integrated for safe travel to the station.
Additionally, unlike other companies, KooRoo enables users to swap batteries within 20 seconds without any further authentication after the initial verification. The compatibility with various motorcycle models and batteries offers customers a wider range of choices, which is another significant advantage.
LG Energy Solution’s battery safety diagnostic technology allows real-time management of KooRoo’s BSS, aiding safer and more convenient rides for users. Information on charging and discharging of KooRoo batteries is collected in real-time, while the residual lifespan and temperature are monitored 24/7. Moreover, a battery control system and drainage structure are in place to prevent electric shocks during rain, addressing the particular characteristics of motorcycles.
Currently, KooRoo’s BSS operates around 180 stations, primarily in high-demand delivery areas such as Gwanak-gu and Dongjak-gu in southern Seoul. The stations are closely installed with an average distance of just 1 km apart for user convenience. Plans are in place to expand station locations throughout Seoul by the end of this year, and up to 1,000 stations will be installed in the metropolitan area by 2025.
KooRoo CEO Park Chan-woo stated, “The key feature is significantly enhancing convenience and safety by combining electric motorcycles, which are free from noise and exhaust, with LG Energy Solution’s technological leadership.” He emphasized the commitment to lead in creating an eco-friendly motorcycle ecosystem, prioritizing differentiated customer values such as environmental concerns and safety.
Meanwhile, detailed explanations of KooRoo’s BSS business and battery swapping demonstrations will be available at the ‘InterBattery 2024’ event, taking place from the 6th to the 8th of this month at COEX in Gangnam, Seoul.
Written by Lee Sang-jin (daedusj@autodiary.kr)