SEOUL, Feb. 5 (Korea Bizwire) — The volume of transactions made through online-to-offline (O2O) services increased last year from the year prior, a recent report showed.
O2O refers to services that allow users to order food, call a taxi or rental car, and book accommodations and leisure anytime, anywhere through mobile phone applications.
According to a survey conducted by the Ministry of Science and ICT, 555 companies provided O2O services in South Korea, while 179 were in living service sectors, accounting for 32.3 percent of the total.
This was followed by 121 in the mobility and logistics sector, accounting for 21.8 percent, 100 in the labor market, accounting for 18 percent, 65 in the lodging and leisure market, accounting for 11.7 percent, 47 in food, accounting for 8.5 percent, and 43 in real estate, accounting for 7.7 percent.
Sales in the O2O market reached 2.9 trillion won (US$2.44 billion) last year, up 30.4 percent from 2.27 trillion won in 2018.
By sector, food accounted for 840 billion won or 28.4 percent, followed by mobility and logistics at 22.5 percent or 640 billion won, and living services at 500 billion won, or 17.4 percent.
These were followed by the labor market at 420 billion won, and accommodation and leisure at 11.5 percent or 330 billion won, the data showed.
The types of sales by companies were commissions, advertising fees, general fees, regular fees and subscription fees, with most companies having two or more profit models, including commissions and ad sales.
Meanwhile, the estimate of transactions through O2O services last year was about 97 trillion won, up 22.3 percent from 2018.
By service, the real estate sector accounted for 34.9 trillion won (35.8 percent) compared to 28.9 trillion won (29 percent) in mobility and logistics, and 18.9 trillion won (19.5 percent) in food.
D. M. Park (email@example.com)