[Asia Economy Reporter Changhwan Lee] Tada, revived as a franchise taxi, is restarting after receiving 'sandbox' approval.
The Korea Chamber of Commerce and Industry Sandbox Support Center and the Ministry of Science and ICT announced on the 18th that the ‘ICT Sandbox Deliberation Committee’ held a written meeting and approved five cases including temporary approval for GPS-based taxi app meters, demonstration exceptions for franchise taxi flexible fare systems, demonstration exceptions for temporary taxi driver qualification operations, temporary approval for non-face-to-face mobile subscription, and demonstration exceptions for shared kitchen services.
VCNC, the operator of Tada, received a total of three sandbox approvals for the franchise taxi ‘Tada Light,’ which started on the 28th of last month. Tada Light operates 1,000 taxis within the Seoul area.
The committee temporarily approved the use of GPS-based app meters for ‘Tada Light.’ The app meter calculates the fare based on time and distance using GPS information on a smartphone instead of the existing mechanical meter. Under the current Motor Vehicle Management Act, only electrically operated mechanical taxi meters are regulated, so app meters could not be used.
The currently used mechanical meters calculate fares based on the number of wheel rotations, which causes slight errors in fares. Each time the fare system changes, the meter must be removed and replaced. For 72,000 taxis in Seoul, changing the program and labor costs alone costs about 4 billion KRW when base fares or other rates are modified.
The app meter allows various fare systems that were difficult with mechanical meters through software updates. Toll road fees or out-of-town surcharges are automatically calculated by the app without the taxi driver pressing separate buttons. Passengers can check the route and fare in real time through the app, eliminating potential fare disputes.
Additionally, VCNC received demonstration exception approvals for a ‘flexible fare system’ that sets fares by time, destination, and distance according to real-time taxi supply and demand, and for ‘temporary taxi driver qualification operation’ (obtaining formal driver qualification within 3 months before official qualification). The basic fare follows current local government regulations, with discounts when taxi supply is high and surcharges when demand is high.
VCNC CEO Jaewook Park said, “Through AI-based immediate dispatch technology, we plan to eliminate ride refusals and grow into a convenient and safe mobility platform that upholds the basics of mobility, including transparent partitions for quarantine and safe driving services through driver education. We will do our best to ensure coexistence among users, drivers, and franchise transport companies.”
Mobile Phone Activation via App, 7th Shared Kitchen Additional Approval
The ‘non-face-to-face mobile subscription service’ (SKT), which allows easy mobile phone activation through simple identity verification apps (PASS) and account verification, was also additionally approved. Under the current Telecommunications Business Act, only certified electronic signatures, credit cards, or mobile phone text verification are allowed as identity verification methods for non-face-to-face subscriptions, making app-based subscriptions difficult.
The shared kitchen (Widaehan Sangsa) also opened additionally. Like the previously approved demonstration exception shared kitchens, this model allows multiple businesses to share the same kitchen. According to the current Food Sanitation Act Enforcement Rules, multiple businesses cannot share one kitchen.
This is the 7th shared kitchen sandbox approval. There is also a Food Sanitation Act amendment bill (proposed by Assemblyman Kim Seongju) in the National Assembly to change the shared kitchen system.
Woo Taehee, Executive Vice President of the Korea Chamber of Commerce and Industry, said, “With this sandbox approval, Tada will continue its past popularity as a franchise taxi. The Korea Chamber of Commerce and Industry will continue to support various mobility innovations through the combination of existing transportation means and ICT technology via the sandbox.”
Meanwhile, the Korea Chamber of Commerce and Industry Sandbox Support Center is the first private sandbox organization in Korea. It supports all industrial sectors including ICT convergence, industrial convergence, and financial innovation sandboxes. Since its launch in May, it has supported the market launch of 39 innovative products and services.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
