Kakao Mobility to Apply 2.8% Commission on Taxi Franchise Starting June

Kakao Mobility announced on the 25th that it has finalized the launch schedule for a 'new franchise product with a 2.8% commission fee' in June. The new matching algorithm requested by the taxi industry will also undergo technical testing and is planned to be introduced within the third quarter.

Since December last year, Kakao Mobility has held meetings and individual working sessions with major taxi organizations (National Taxi Labor Union Federation, National Democratic Taxi Labor Union, National Taxi Transport Business Association Federation) and the franchise taxi industry (14 regional franchise councils nationwide) to prepare a reform plan based on the opinions of the taxi industry.

To implement the win-win agreement, a new franchise product with a 2.8% commission fee will be launched in June. This is a lower rate compared to the existing franchise commission. Initial subscription costs will also be reduced, which is expected to significantly lessen the burden on taxi operators.

Development of a fair dispatch system is also accelerating. Through this reform, Kakao Mobility will change to simultaneously apply ▲Artificial Intelligence (AI) recommendations and ▲Estimated Time of Arrival (ETA) score methods. For smooth operation, technical testing will be conducted within the first half of the year, followed by introduction in the third quarter.

Kakao T Taxi has so far prioritized the AI recommendation-based method for faster dispatch, then sequentially applied the ETA score-based method in case of dispatch failure. This approach has achieved about a 40% reduction in average dispatch waiting time. Kakao Mobility plans to enhance the matching rate by reforming to simultaneously apply both methods, respecting the taxi industry's opinion emphasizing the importance of the ETA score.