[Exclusive] Kakao Draws Sword: "Report If Tada or Uber Use Our App"

[Asia Economy Reporter Buaeri] Kakao Mobility, the market leader in taxi-hailing apps, has taken a strong stance against other affiliated taxi companies.

According to industry sources on the 27th, Kakao Mobility recently posted a notice on the KakaoT app for taxi drivers, stating, "If you witness cases where taxis from other brands are operating using the KakaoT taxi-hailing service, please report them."

There have been occasional instances where taxis affiliated with other companies, such as Macaron and Uber, responded to calls made through KakaoT. Although these affiliations were with other brands, drivers received free calls through the intermediary service of the KakaoT app, which is free of charge, leading to this phenomenon.

Kakao Mobility has also established a separate 'reporting page' where specific information such as vehicle numbers and brands can be entered. With this information, the company can verify the facts through the KakaoT platform at the corporate level.

Photo by Taxi driver Gu Kyung-min (operating MakkaPa TV)

This move is interpreted as an extension of Kakao Mobility's intention to prevent other affiliated taxi brands from receiving KakaoT calls for free and operating their businesses. Previously, Kakao Mobility notified major domestic affiliated taxi operators such as Tada, Uber, and Macaron that they must form partnerships to receive general calls provided by KakaoT.

Within the industry, there are various speculations that Kakao Mobility may suspend accounts of other affiliated taxis receiving free calls or impose commissions. KakaoT currently holds an overwhelming market share of about 80% among domestic taxi intermediary platforms. The number of taxi driver members reaches 230,000, and the app has 28 million users. Other affiliated taxi brands, excluding Kakao Mobility, are finding it difficult to meet the call demand from drivers.

Some view Kakao Mobility's recent actions with a critical eye, suggesting it is solidifying a 'monopoly system.' Kakao Mobility has recently been in conflict with the taxi industry. When Kakao Mobility launched a 'Pro Membership' priced at 99,000 KRW per month last month, the taxi industry urged the Fair Trade Commission to investigate. Lee Yang-deok, Executive Director of the National Taxi Transport Business Association Federation, criticized, "Kakao Mobility initially promised a free policy but now intends to monopolize data and engage in unfair practices."

Kakao Mobility states that various problems have arisen as other affiliated operators use the KakaoT platform concurrently. For example, cases occur where other affiliated taxis accept calls via KakaoT but unilaterally cancel due to their own brand's automatic dispatch system, and promotional materials for other affiliated services are distributed, damaging the service experience of KakaoT users.

A Kakao Mobility official said, "Since Kakao affiliated member companies have raised fairness complaints, we decided to centralize communication channels and receive related reports," adding, "We are continuously discussing partnerships with other affiliated companies."