[Reporter’s Notebook] Fair Trade Commission’s Decision on Kakao Should Also Consider Its Efforts

[Asia Economy Reporter Seungjin Lee] Following the disclosure of its trade-secret dispatch system, Kakao Mobility has presented a win-win plan worth 50 billion KRW, equivalent to five times its operating profit. In the mobility industry, there is talk that "Kakao Mobility has done everything it can." It is said that Kakao Mobility's efforts should be evaluated in the Fair Trade Commission's judgment on the Kakao Taxi 'call bundling' allegations, expected by the end of this month at the latest.

On the 7th, at an online press conference, Ryu Geung-seon, CEO of Kakao Mobility, bowed his head and said, "We deeply regret the shortcomings such as call bundling and the controversy over infringement on local businesses." This is six months after he bowed his head once over the same issue during last year's National Assembly audit.

On the same day, Kakao Mobility also announced a win-win plan worth 50 billion KRW. Kakao Mobility plans to seek sustainable co-growth through △increasing supplier revenue within the platform (37 billion KRW) △improving treatment of platform suppliers (8 billion KRW) △reducing cost burdens for small and medium-sized businesses (5 billion KRW).

Previously, Kakao Mobility disclosed information about the components and variables considered in its dispatch system. After revealing the dispatch system, some pointed out that reflecting the 'acceptance rate' was evidence of 'call bundling.'

CEO Ryu responded, "Reflecting the acceptance rate is to enable users to use taxis more quickly, and eliminating the difference between drivers who selectively accept calls and those who work hard is another form of reverse discrimination." Taxi users have been frustrated by drivers avoiding specific destinations at certain times, so Kakao Mobility's explanation is understandable.

Before the introduction of the artificial intelligence (AI) dispatch system, the average dispatch waiting time was 14.1 seconds in 2019, which decreased to 8.6 seconds in 2021. From the perspective of taxi users, this should be evaluated as a service improvement rather than 'call bundling.'

Kakao Mobility controls about 90% of the domestic taxi platform market, so it cannot avoid monopoly and oligopoly controversies.

However, it is an undeniable fact that taxi drivers' monthly income increased by up to 2.5 million KRW after the launch of the KakaoT service. It is worth considering that the government's and political circles' idle policies on improving taxi drivers' treatment have not improved the livelihoods of the drivers.