Seoul Mid-Size Taxi Base Fare Up 26.3%
Affordable Price and Convenience Increase
Most Used by People in Their 20s
Emerging as an Alternative in the Taxi Industry
Since last year, taxi fares have been rising one after another, making personal mobility a viable alternative. Especially among people in their 20s, usage rates have been high, with many citing the burden of taxi fares as a reason for using personal mobility. There are also forecasts that shared kickboards will partially replace the taxi industry due to their affordable prices and convenience.
On the afternoon of the 21st in Gangnam-gu, Seoul, Choi (23) said, “I often use shared kickboards instead of taxis when the weather is not too cold,” adding, “Taxi fares have risen so much that it’s almost scary to take one. Shared kickboards lined up near subway stations are very convenient.” College student Kang (26) praised, “I use them when it’s awkward to walk and taxis are hard to catch,” and said, “If you use discount benefits well, it’s much cheaper than taxis.”
In February last year, the basic fare for medium-sized taxis in Seoul increased by 26.3%, from 3,800 won to 4,800 won. The meter’s increment timing and speed also became faster. The basic distance was reduced by 400 meters, from 2 km to 1.6 km. The distance fare standard changed from 100 won per 132 meters to 100 won per 131 meters, and the time fare standard was adjusted from 100 won per 31 seconds to 100 won per 30 seconds.
If the speed is below 15.33 km/h, additional time-based charges apply. Since December 2022, the start time for late-night surcharges was moved forward by two hours, from midnight to 10 p.m. A dynamic fare system is also in place, increasing the surcharge rate from 20% to 40% between 11 p.m. and 2 a.m., when passenger demand is high.
According to an analysis of taxi usage rates and mobility-related application (app) usage from Macromill Embrain panel big data, the average taxi usage rate has been declining, from 13.2% in December 2021 to 11.2% in 2023. Late-night (10 p.m. to 2 a.m.) taxi usage also decreased from 4.9% in 2021 to 4.2% in 2023. This is interpreted as a decline in users due to the increase in taxi fares.
On the other hand, personal mobility app usage grew by 249% in 2023 compared to 2021, as of December last year. By age group, personal mobility app usage rates were 13.5% for those under 20, 10.0% for those in their 30s, 6.0% for their 40s, 4.7% for their 50s, and 2.6% for those 60 and older. Taxi usage rates were 7.5% for under 20, 16.0% for 30s, 13.3% for 40s, 11.2% for 50s, and 8.6% for 60 and older. It is analyzed that people in their 20s use personal mobility the most instead of taxis.
Professor Kim Pil-su of the Department of Automotive Studies at Daelim University said, “Shared kickboards are widely used by people in their 20s because they are affordable and offer good mobility,” adding, “Taxi fares have increased, and it is difficult to catch taxis for short distances. It can be seen that personal mobility is sharing a certain portion of transportation.”
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