[Asia Economy Reporter Buaeri] Kakao Mobility has strongly denied Gyeonggi Province's statement that some suspicions of 'franchise taxi call favoritism' are true.
On the 25th, Kakao Mobility stated in a press release, "It is not true that the number of calls decreased due to the introduction of KakaoT Blue." 'KakaoT Blue' is a franchise taxi brand operated by Kakao Mobility. The company also emphasized, "We do not engage in artificial dispatching that degrades the value of the platform."
So far, the taxi industry has raised suspicions that Kakao Mobility favors calls only to its KakaoT Blue. For example, when a passenger calls a taxi using the taxi-hailing application (app) 'KakaoT,' calls do not go to nearby taxis, but instead, KakaoT Blue taxis located farther away receive the calls.
Gyeonggi Province: "Some Suspicion of Dispatch Favoritism Confirmed"
Kim Ji-ye, Director of the Fair Economy Division of Gyeonggi Province, stated the day before, "Some suspicions of dispatch favoritism were confirmed in the field investigation."
Gyeonggi Province conducted a 'Dispatch Favoritism Suspicion Field Investigation' from the 10th to the 20th targeting 115 individual taxi operators in seven cities where KakaoT Blue operates. The results showed that the number of KakaoT dispatch calls decreased by 29.9% compared to before and after KakaoT Blue operation.
The decrease rates by region were: Guri 48.7%, Seongnam 35.0%, Yangju 29.8%, Namyangju 28.0%, Uijeongbu 24.4%, Hanam 24.0%, and Yongin 19.4%.
On the other hand, in regions where KakaoT Blue does not operate, the average number of KakaoT dispatch calls for individual taxis increased by 2.7% over four months from March to June, showing almost no change.
Additionally, in regions where KakaoT Blue operates, individual taxi sales decreased by an average of about 13% compared to before and after KakaoT Blue operation, whereas in non-operating regions, sales increased by an average of 3.6%.
Kakao Mobility: "Average Daily Calls for Individual Taxis Increased"
Kakao Mobility rebutted, "Checking the 'received call count' sent from KakaoT from February to August this year for general individual taxi drivers, the same group targeted by Gyeonggi Province's investigation, the number of calls in August increased by an average of 42% per day compared to February."
The company added, "The increase ranged from a minimum of 12.9% to a maximum of 69.3% by region," and stated, "It is not true that the number of calls decreased by 30% due to the introduction of KakaoT Blue."
Furthermore, Kakao Mobility explained that since general taxi drivers selectively accept preferred calls on the KakaoT app, even if the platform sends many calls, the number of completed trips may appear low.
Kakao Mobility added, "Upon reviewing the call reception data for the seven regions investigated by Gyeonggi Province, more than 100 calls per driver per day were sent from February to August this year, but the number of calls actually accepted and completed was low."
"Sample Size Too Small... Excluding Various Factors, Distorts the Facts"
Kakao Mobility stated that the sample size of Gyeonggi Province's investigation is too small to be representative of the whole.
Kakao Mobility emphasized, "Due to COVID-19, overall mobility decreased socially, and taxi usage is greatly affected by external factors such as weather, seasons, and year-end holidays. Concluding that the decrease in call volume is due to 'call favoritism' without analyzing these factors risks distorting the facts."
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