"To Resolve Taxi Crisis, Fare System and Driver Supply Methods Must Be Made Flexible"

Kakao Mobility Publishes 'Mobility Report' Analyzing Taxi Demand and Supply Imbalance

[Image source=Yonhap News]

[Asia Economy Reporter Kang Nahum] Amid the ongoing late-night taxi crisis, Kakao Mobility has published a ‘Mobility Report’ analyzing the imbalance between taxi demand and supply, suggesting diversification of fare systems and driver supply methods.

According to the Mobility Report released by Kakao Mobility on the 14th, taxi demand varies significantly depending on various factors such as time of day, day of the week, region, and weather.

Daily call volumes still show large fluctuations, concentrating during rush hours (17:00?20:00), late-night hours (22:00?02:00), and morning commute hours (07:00?10:00). After the Friday rush hour (17:00?03:00), call volumes increased 2.5 times compared to Monday, showing different movement patterns depending on the day of the week.

Also, the call volume in Gangnam-gu, a representative commercial district, during midnight hours was more than 10 times higher than in the so-called 'Nodogang 3 districts,' which are residential areas, revealing regional characteristics. On August 8, when record-breaking heavy rain fell, call volumes between 17:00 and 24:00 surged by 249% compared to the previous week, confirming changes due to irregular factors such as weather.

On the other hand, supply showed rigidity, concentrating operations during daytime hours compared to late-night hours. Private taxi licenses account for about 66% of all taxis, and according to Seoul city statistics, more than half of Seoul’s private taxi drivers are aged 65 or older. They tend to finish work around 18:00, earlier than the MZ generation drivers who usually finish at 23:00, resulting in a fixed pattern of main taxi operating hours from 09:00 to 18:00.

The rigid working environment of corporate taxis, which have been responsible for supply without day-night variation, has led to a decline in new driver inflow, affecting the decrease in taxi supply. Despite demand recovery following the lifting of social distancing in July, the number of corporate taxi drivers by time slot decreased by an average of 26% compared to the same month in 2019 before the COVID-19 outbreak, with nighttime hours dropping by up to 37%.

Kakao Mobility analyzed that to solve the chronic taxi boarding difficulties that have persisted for decades even before the platform era, a more flexible environment for supply changes is necessary.

As a solution, it suggested preparing various fare systems that can be flexibly applied according to supply conditions, reflecting cases of major global mobility platforms and domestic large-scale and premium taxis like Kakao T Venti. It also explained the need to diversify driver supply methods to match rapidly changing demand in the short term.

Kakao Mobility publishes the Mobility Report annually, analyzing big data on Kakao T users’ movements to highlight changing lifestyles and domestic mobility trends. This year, it will open a ‘Mobility Report’ website to provide analytical content.

The newly launched Mobility Report website will serve as a kind of ‘mobility content and data archive,’ consolidating the digital assets and integrated management of Kakao Mobility Reports published annually since 2017, as well as mobility data analysis results scheduled to be released in a timely manner starting this year.

Ryu Geung-seon, CEO of Kakao Mobility, said, “Based on the vast data secured through Kakao T and Kakao Navi, Kakao Mobility has analyzed changes in living environments beyond mobility. Through the Kakao Mobility Report website, we plan to explore the social meanings and values implied by changes in movement and showcase various technological innovation cases.”