Kakao Mobility Enters Laos... Direct Competition with Gojek and Grab

Establishing a Local-Only Service Platform
Forward Base for Direct Competition with Grab and Gojek
Overseas Roaming Service Operating in 32 Countries Worldwide

[Asia Economy Reporter Seungjin Lee] Kakao Mobility announced on the 31st that it will establish a local dedicated service platform in Laos and begin full-scale competition with global companies based in the Southeast Asian market such as Gojek and Grab.

Last year, Kakao Mobility began targeting the global market by directly applying Kakao T technology infrastructure in Guam, a region in the Americas. This time, to enhance global competitiveness through targeting the Southeast Asian market, it signed a business agreement with LVMH Holdings, known as a national company in Laos, and is working on building a local dedicated service platform.

Established in Laos in 1997, LVMH Holdings is expanding its business areas based on mobility businesses such as automobile and motorcycle production and manufacturing within the Indochina Peninsula, including Vietnam, Myanmar, and Cambodia. It is the largest private company in Laos, holding the top position in vehicle sales in Laos and second place in commercial vehicle sales in Vietnam, demonstrating a strong presence in the Southeast Asian market.

Laos, the Forward Base for Global Mobility Competition

Laos is the only landlocked country in Southeast Asia. It is a geographical key point bordering all Mekong region countries (Cambodia, Myanmar, Thailand, Vietnam) as well as China. Considering these characteristics, Kakao Mobility judged that Laos is the most suitable forward base for mobility competition in Southeast Asia.

Despite its geographical and environmental advantages and high demand for mobility, Laos lacks public transportation infrastructure. Kakao Mobility plans to transplant its advanced data analysis and ICT (Information and Communication Technology)-based service operation know-how to strengthen its competitiveness in the global market. Additionally, Laos is rich in electric energy to the extent of exporting power, making it a major testbed for realizing green mobility such as electric vehicles.

Starting Competition with Gojek and Grab

Kakao Mobility plans to complete the establishment of a Laos-dedicated service platform within the year and launch mobility services suitable for the local market environment. This is an evaluation of achieving 'localization of technology infrastructure' in a country with completely different market environments and systems. It is the first case of building services not only for Koreans visiting locally but for all mobility demanders within the market.

Based on the service operation experience in Laos, Kakao Mobility aims to expand its territory throughout Southeast Asia. It plans to prove the global competitiveness of its proprietary technology infrastructure in the Southeast Asian market, where local-based global mobility companies such as Gojek and Grab have a stronghold.

Kakao T Roaming Service Provided in 32 Countries Worldwide

Kakao Mobility's starting point for entering the global market is Kakao T Roaming. It is currently operating in a total of 32 countries across Europe, Asia, Southeast Asia, and the Middle East. In the future, it plans to operate inbound roaming services so that foreigners visiting Korea can use it. According to statistics from the Korea Tourism Organization, the number of visitors to Korea in October last year increased more than fivefold compared to the same period the previous year, and demand for mobility services targeting inbound visitors is expected to gradually increase.

Kakao T Roaming is on the rise due to increased travel demand following the endemic trend. Compared to the first week of June last year (6/2?6/8), when overseas travel demand began to recover, the number of completed rides during this year's Lunar New Year holiday period (1/19?1/25) increased by 3.8 times and 7.5 times daily on average in Vietnam and Thailand, respectively. In Japan, where free travel resumed in October last year, the number of completed rides increased more than 27 times compared to the border easing period (10/13?10/19).

Ahn Gyu-jin, Vice President and Head of Kakao Mobility's Business Division, said, “Kakao Mobility is achieving the globalization of the Korean mobility platform by directly applying technology infrastructure locally beyond overseas roaming. Taking this Laos entry as an opportunity, we will prove our global competitiveness in Southeast Asia, a major global mobility market, and continuously create successful overseas expansion cases leading the global mobility industry.”