Uber Counters with Paid Taxi App Plan... "More Benefits Than KakaoT" (Comprehensive)

Paid Membership "Uber One" to Launch in Early September
4,900 Won per Month, Up to 10% Fare Cashback
KakaoT Unveils Paid Plan with Same Price a Day Earlier
"Teen Account" Service Offers Real-Time Ride Tracking for Parents

Uber Taxi is launching its subscription-based membership service, "Uber One," which is already available in global markets, in Korea. Uber One is a paid membership plan that offers benefits such as earning Uber One credits on Uber Taxi rides and priority dispatch. This move targets Kakao Mobility's monthly subscription service "KakaoT Members," which is set to officially launch on the 27th, and is seen as a strategy to counter KakaoT, which currently dominates the domestic taxi app market.

Song Jinwoo, Head of Uber Taxi Korea, stated at a press conference held at Lotte Hotel in Jung-gu, Seoul, on the 26th, "We aim to create a turning point for further growth in the Korean market by offering passengers more diverse options and providing drivers with new income opportunities."

Song Jinwoo, Head of Uber Taxi Korea, is making a presentation at a press conference held at Lotte Hotel in Jung-gu, Seoul, on the morning of the 26th. Photo by Uber

Uber One is Uber's subscription-based membership service. Uber One members can earn up to 10% of their Uber Taxi fare as Uber One credits, which can be used for their next ride. For Uber Taxi-affiliated products such as Uber Taxi, Speed Call, Uber Black, and Standard Taxi XL, members earn 10% back. For Standard Taxi, Premium Taxi, and Green products, members earn 5% back.

The Uber One membership fee is 4,900 won per month, or 49,000 won per year if paid annually, which is about 17% cheaper. Uber One will be rolled out sequentially nationwide by early next month after a trial period in select regions. Credits accumulated through Uber One in Korea cannot be used abroad. Uber explained, "This is due to exchange rate issues and differences in services offered by country."

Previously, Kakao Mobility announced that its competing service, "KakaoT Members," a paid monthly subscription, would officially launch the day before. KakaoT Members is divided into "Mobility Plus," which focuses on taxi services, and "My Car Plus," for car owners. The Mobility Plus plan is priced at 4,900 won per month, the same as Uber One.

Uber Taxi highlighted its higher cashback rate as a key advantage over competing subscription services. Song emphasized, "Competing subscription services offer a 3% cashback on select products, requiring users to spend 100,000 won per month just to break even. With Uber One, users only need to spend 50,000 won on Uber Taxi rides to reach the breakeven point." However, KakaoT Members offers benefits across various sectors, including taxis, bikes, rental cars, leisure, and pet services.

Regarding the decision to set the domestic monthly fee at 4,900 won, the same as KakaoT, Song explained that it was tailored to the taxi usage patterns of Korean users. He said, "Uber One's monthly fee varies by country, with the U.S. Uber One costing about $10 (approximately 14,000 won) per month. We set the benefits and pricing to be optimal for the Korean market, considering local ride frequency and average fares."

A new youth-exclusive service, "Uber Teen Family Account," was also unveiled on the same day. This service, launching on the 29th, allows teenagers to call a taxi using an Uber Teen Family Account linked to their parents, enabling parents to track their child's route in real time through the Uber app. The service will begin in Seoul, Incheon, Seongnam, Daejeon, Daegu, Ulsan, Busan, and Jeju, and will gradually expand nationwide.

As this service targets teenagers, safety is a top priority. When a taxi is called using a Teen Family Account, only top-rated drivers are dispatched. Uber Taxi's safety features, such as PIN number verification and direct 112 emergency call connection via the app, are also mandatory. The PIN verification service, exclusive to Uber Taxi in Korea, allows passengers to confirm they are boarding the correct vehicle using a PIN code.

Uber Taxi also introduced a new vehicle wrapping option to help affiliated drivers earn additional income. Drivers can attach advertisements to available space on their vehicles to generate extra revenue. Uber Taxi claims its commission rate is the lowest in the industry at 2.5%. The company is also improving the driver-only app's user experience based on driver feedback. Leveraging its global network, Uber has increased the number of airport ride requests by more than double compared to the previous year by attracting more foreign passengers.

Dominic Taylor, Head of Uber Mobility Asia Pacific, emphasized, "Korea is one of Uber's core markets and is growing rapidly. In fact, the number of Uber Taxi trips completed in Korea, from ride request to dispatch and boarding, has been recording double-digit growth every year."

Meanwhile, during the press conference, Song also expressed interest in future mobility industries such as autonomous driving. He stated, "Once the relevant regulations and environment are in place, we are ready to collaborate with autonomous driving companies. We also have experience from the U.S. and Middle Eastern markets," adding, "We are approaching the Korean market cautiously due to regulatory considerations."

Dominic Taylor, Head of Uber Mobility Asia Pacific, delivers a welcoming speech at a press conference held at Lotte Hotel in Jung-gu, Seoul, on the morning of the 26th. Photo by Uber