LG Uplus buys pet Airbnb-style startup to boost pet care services

The mobile carrier aims to double its corporate value to $900 million by 2027

Ji-Eun Jeong 2

2023-11-13 13:30:43 jeong@hankyung.com

Tech, Media & Telecom

LG Uplus Corp. has acquired a domestic dog space rental startup Along as the South Korean mobile carrier is zooming in on pet care services as its new growth driver, according to industry officials on Sunday.

Along, a so-called pet Airbnb, offers pet outing spot reservation services. It attracts pet owners who want to spend time with their dogs and cats in luxury locations, such as homes with swimming pools or large lawns.

Started as LG Uplus’ in-house startup, it was spun off from the parent company in September last year.

Bringing it back under its wing marked LG Uplus’ third investment deal in the pet care market this year, with an aim to double its corporate value to 12 trillion won ($900 million) by 2027, versus 6 trillion won in 2023.

In June this year, it acquired PuppyU, South Korea's No. 1 dog online community. In August, it invested 3 billion won ($2.3 million) in Vetching, a provider of cloud electronic medical records (EMR) for animal hospitals.

Since 2019, the country’s third-largest mobile carrier has been at the forefront of the smart home pet care market, utilizing its expertise in the telecommunication market.

PET CARE PLATFORM

In July of last year, it launched a pet care platform ForDong. It provides pet personality tests and free consultations with training experts, as well as a trainer-matching service for behavior adjustment.

It is now seeking to offer a wide range of data-driven, pet-specialized and customized services such as pet healthcare.

Among the new services to be launched will include matching pet owners with grooming salons, supply stores and cafes for pets.

According to the Korea Tourism Organization and the Korea Consumer Agency, the annual expenditure on travel with pets amounts to 1.4 trillion won for day trips and 918.7 billion won for overnight travel in South Korea.

The government is seeking to foster the pet care-related market to reach 15 trillion won by 2027, compared to 8 trillion won in 2022, Chung Hwang-keun, minister of Agriculture, Food and Rural Affairs, said in August at a meeting with pet industry officials.

LG Uplus aims to increase the number of subscribers on its main pet care platform ForDong to 7 million by 2027, versus the current 350,000.

Write to Ji-Eun Jeong at jeong@hankyung.com

Yeonhee Kim edited this article.