Gyeonggi Private Taxis Hit After KakaoT Blue Implementation... Dispatch Call Volume Down 29.9%

[Asia Economy (Suwon) = Reporter Lee Young-gyu] A survey revealed that the number of dispatch calls for private taxis in Gyeonggi Province has decreased by an average of more than 29% since the operation of 'KakaoT Blue Taxi'.

KakaoT Blue is a taxi automatic dispatch service operated by KM Solution, a subsidiary of Kakao Mobility specializing in taxi transportation franchise business. As of the end of last month, a total of 1,926 vehicles are operating in 14 cities and counties within the province.

Gyeonggi Province announced on the 24th that it conducted a 'dispatch call concentration suspicion fact-finding survey' targeting 115 private taxi operators in seven areas where KakaoT Blue Taxi operates from the 10th to the 20th of this month. The result showed that the number of KakaoT dispatch calls decreased by 29.9% compared to before and after the operation of Blue Taxi.

The province conducted this fact-finding survey following suspicions that Kakao Mobility was concentrating dispatch calls to KakaoT Blue to increase franchise commission revenue, even though KakaoT app users can choose between regular taxis and KakaoT Blue Taxi when calling a taxi.

The decrease rate by region was highest in Guri at 48.7%, followed by Seongnam at 35.0%, Yangju at 29.8%, Namyangju at 28.0%, Uijeongbu at 24.4%, Hanam at 24.0%, and Yongin at 19.4%.

On the other hand, in regions where KakaoT Blue Taxi does not operate, the average number of KakaoT dispatch calls for private taxis increased by 2.7% over four months from March to June, showing almost no change.

Additionally, in areas where KakaoT Blue Taxi operates, private taxi sales decreased by an average of 13% compared to before and after Blue Taxi operation, whereas in non-operating areas, sales increased by an average of 3.6%.

The province plans to deliver the results of this fact-finding survey to the Fair Trade Commission and request additional investigations, while also asking Kakao Mobility to prohibit arbitrary dispatch and seek win-win cooperation measures.

The province also presented related damage cases at the 'Online Platform Market Monopoly Prevention Measures Forum' held at the Irum Center in Yeouido, Seoul, on the same day.

Kim Ji-ye, head of the Fair Economy Division of the province, said, "This fact-finding survey partially confirmed dispatch call concentration, but whether it violates the law requires investigation by the Fair Trade Commission. Since the violation standards under the Fair Trade Act are too high, a separate law regarding platform transactions is necessary. We will also seek win-win cooperation measures so that Kakao Mobility can become a positive model within a fair economy."