"By 2028, we expect 80% of our total revenue to come from robotrucks and 20% from robotaxis. Our goal is to achieve large-scale commercialization in Korea first, then expand overseas after 2028," said Park Joong-hee, CEO of Rideflux, in a recent interview with Aju Economy at the company's office in Yeongdeungpo, Seoul.
Founded in 2018, Rideflux is a leading autonomous driving software company in South Korea. Park, an engineer who previously researched robotics, pursued a Ph.D. at the Massachusetts Institute of Technology (MIT), focusing on applying artificial intelligence (AI) technology to vehicles. He decided to establish Rideflux after observing the slow development of autonomous driving startups in South Korea compared to international firms like Aurora and Nuro.
Park noted that the market for Level 4 autonomous driving would open up first for service vehicles like robotaxis and robotrucks rather than personal cars. "Level 4 should be applied to service vehicles, and a new business model is necessary, which is why I founded Rideflux," he explained, adding that as a deep-tech company, they need a long-term approach to continue software development.
The company's primary revenue model involves supplying autonomous driving software to operators of robotaxis and robotrucks, charging regular usage fees. Clients can apply Rideflux software to their vehicles, reducing operational costs and increasing utilization rates. Park explained that vehicles can operate 24/7, allowing for greater profitability from the same assets. By focusing on software development and supply rather than owning vehicles, Rideflux aims to lower asset burdens and enhance scalability.
Park predicts that by 2028, the revenue ratio between robotaxis and robotrucks will be 20% to 80%. While the domestic taxi market is valued at approximately 9 trillion won annually, the middle-mile freight market connecting logistics centers is estimated at around 31 trillion won. He stated, "We are pursuing both businesses with common software, but naturally, the revenue from robotrucks will be larger."
Regarding the potential for international expansion, Park remains cautious, emphasizing the need to focus on large-scale commercialization in Korea first. He stated, "It makes sense to concentrate on the Korean market first," adding that after 2028, they could explore markets in Southeast Asia, where road conditions are similar to Korea and where they can leverage their competitive advantages.
Rideflux is preparing for a KOSDAQ listing in the second half of this year, with plans to invest the funds raised into large-scale commercialization in Korea. The key focus is on improving safety. They aim to enhance AI technology so that a small number of monitoring staff can manage multiple vehicles, rather than having safety personnel in each vehicle. Park emphasized, "Ultimately, full automation is necessary for large-scale commercialization," noting that having safety personnel in vehicles increases costs as the business grows.
When Park refers to safety, he means achieving a level of reliability where vehicles can handle exceptional situations without accidents after hundreds or thousands of runs. He stressed the need for trust in vehicles without drivers, stating, "We need to establish trust to the point where people can confidently ride in a car with no one in the driver's seat," and emphasized the importance of verifying rare edge cases through data and validation systems. He also mentioned the necessity of duplicating critical systems like braking and communication within the vehicle to ensure that if one fails, another can respond.
Rideflux plans to launch a robotaxi service without a safety officer in the driver's seat in the fourth quarter of this year in Sangam, Seoul. Initially, they are considering offering free rides to the general public. Park noted, "While unmanned robotaxis have already been commercialized abroad, there are no such cases in Korea yet," and emphasized the need for services without safety personnel in the driver's seat.
In the freight sector, they plan to begin paid middle-mile transportation in the second half of the year. They are currently negotiating specific details such as routes and the number of vehicles with clients. Including ongoing discussions, they already have over ten clients interested, primarily logistics companies. However, autonomous vehicles will not be deployed in large numbers from the start; they will begin with a few vehicles on designated routes and gradually expand to a maximum of 30 vehicles next year.
Park highlighted capital efficiency as a key differentiator for Rideflux. While global tech giants and foreign autonomous driving companies have invested heavily in advancing technology, Rideflux has reached the unmanned stage with relatively less capital. He expressed confidence, stating, "It is true that we are a latecomer compared to leading companies abroad, but we are achieving similar technological results with much less capital," and added that as large-scale commercialization begins, they expect a reassessment of their corporate value and improved price competitiveness in the market.
He also emphasized their technological capabilities. Last year, Rideflux demonstrated its competitiveness by ranking third in the camera-based end-to-end (E2E) autonomous driving challenge hosted by the U.S. autonomous driving company Waymo, competing against global firms and research institutions. Park expressed confidence that they possess higher competitiveness in certain technical aspects compared to global companies.
When asked if domestic regulations are hindering the commercialization of autonomous driving, Park disagreed. He stated, "Korea has relatively well-prepared regulations for autonomous driving," and emphasized that the delay in technology is due to the time needed for capital investment and technology validation. He added, "Autonomous driving is a representative field of physical AI and an industry that requires national competitiveness," asserting, "We will create a scenario where unmanned autonomous driving operates on a large scale in Korea."
* This article has been translated by AI.
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