"South Korea: A Key Market... Focused on Taxi Hailing"
Dara Khosrowshahi, CEO of Uber, who visited Korea for the first time, announced plans to expand cooperation with joint venture partner SK Square and automobile manufacturers. He explained that since Korea is a key market, they aim to enhance competitiveness through local partnerships.
On the 30th, CEO Khosrowshahi held a media briefing at The Plaza Hotel in Jung-gu, Seoul, sharing his vision for Uber’s business in Korea. He visited Korea following recent trips to China and Japan.
Dara Khosrowshahi, CEO of Uber, is presenting the business at the 'Uber Global CEO Visit to Korea Commemorative Media Session' held on the 30th at the Plaza Hotel in Jung-gu, Seoul. Photo by Jinhyung Kang aymsdream@
The reason for CEO Khosrowshahi’s visit to Korea was to meet with various partners. On the same day, he had breakfast with Han Myung-jin, the newly appointed CEO of SK Square, to discuss partnerships. Uber previously attempted to enter the Korean market with a ride-hailing service for passenger cars but faced opposition from taxi companies. In response, in 2021, Uber formed a joint venture called 'WUTI' with T Map Mobility, a subsidiary of SK Square, shifting focus to taxi-hailing services.
Regarding rumors of a split with SK Square, he did not provide a clear answer. According to the investment banking (IB) industry, T Map Mobility is reportedly seeking to sell its stake in WUTI. Uber’s renaming of the service to 'Uber Taxi' in March also fueled speculation about a potential sale. CEO Khosrowshahi said about the possibility of changes in the taxi business structure, "It is difficult to respond due to policy reasons," but added, "We had positive discussions about how to shape the future of both companies."
He also plans to meet with domestic manufacturers related to autonomous driving and electric vehicles. Uber is developing fully autonomous driving technology to be installed in vehicles and has set a goal to operate all ride-hailing vehicles as carbon-neutral by 2024. To achieve this, Uber is investing in autonomous driving technology startups and collaborating with global automakers. He said, "We will meet with Korean manufacturers who have leading technologies in autonomous driving and electric vehicles," and evaluated them as "world-class and attractive partners."
Strengthening local partnerships reflects the view that Korea is an important market. It is one of the fastest-growing markets among the 70 countries where Uber operates.
In the first half of this year, the number of Uber Taxi users in Korea grew by 78% compared to the same period last year. Since the rebranding in March, the service has maintained double-digit monthly growth. The number of foreign tourists, who tend to have longer ride times than regular passengers, more than doubled. The premium service Uber Black, launched in July, is also growing rapidly.
However, unlike other global markets, Uber does not plan to offer delivery services in Korea. CEO Khosrowshahi said, "There are strong delivery companies in Korea, so we do not see opportunities," and added, "We will focus on ride services."
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