[Alpha Biz=(Chicago) Reporter Kim Jisun] Kakao Mobility (Kakao T), South Korea's No. 1 mobility call platform with 33 million users, will launch a massive service overhaul.

Kakao Mobility announced on the 2nd, "We plan to collect opinions by keeping all agenda items open, including reforming the affiliate taxi fee system as well as service changes.” Kakao Mobility first set out to form a consultative body that includes the four taxi organizations comprised of business operators and labor unions, franchise councils, local businesses, and experts.

The core of the reorganization is expected to be the fee received from the taxi driver (Kakao T Blue) of Kakao Mobility. Drivers who have signed a contract with Kakao Mobility's affiliated taxi must pay 20% of the fee not only when they are called by the application (app) Kakao T but also when they pick up customers on the street. Franchise taxi drivers have called for a major overhaul, including a reduction in commission rates. They claim that Kakao has been able to maintain a high commission rate for years because it is the dominant operator with an overwhelming 90 percent market share in the taxi call market. As of January this year, there are about 40,000 Kakao Mobility taxis.

There is also a fundamental problem that it is not appropriate for Kakao Mobility to continue its taxi business. Kakao Mobility has been criticized several times in a parliamentary audit that it acts as a referee (a brokerage platform) that connects users with taxis, and also plays as a player (taxi business) through franchise contracts.

 

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